Qld rental reforms could cause investors to ‘walk’: REIQ

The Real Estate Institute of Queensland (REIQ) conducted a survey of over 3,300 Queensland property investors into their sentiment regarding the Queensland government’s recent proposed stage two rental law reforms.

According to the survey, 81.4 per cent of investors indicated that the recent and future proposed tenancy laws have influenced whether or not they will sell up.

Additionally, 62 per cent of respondents stated they had considered selling their rental properties over the past two years, with 27 per cent attributing the state government’s rental law reforms as a primary reason.

Further findings revealed 98.6 per cent of investors were “vehemently opposed” to tenants making property modifications without consent.

The respondents cited various concerns including property value, safety regulations, unqualified works, damage costs, and insurance implications.

The REIQ recently criticised the rental reforms, deeming them as “questionable and concerning” without the “transparent legislative process that is reasonably expected”.

REIQ chief executive Antonia Mercorella said they have received an “overwhelming and passionate” response from investors, who are considering walking away from property investment due to the reforms.

“The REIQ is concerned with ongoing and consistent rental law reforms in Queensland which are progressively eroding property investor rights along with their confidence,” Ms Mercorella stated.

“Further withdrawal of properties from the rental pool amid the critical rental crisis in Queensland will have dire consequences on the market in both the short and long term.

“This wholesale reform of the rental market is in direct contradiction with what all stakeholders seem to be in furious agreement about — the need to boost rental supply.”

The Queensland government’s new legalisation amended the Residential Tenancies and Rooming Accommodation Act 2008, through the Local Government Electoral and Other Legislation (Expenditure Caps) Amendment Bill 2022.

The amendments limit the number of times a landlord can raise rent from every six months to once a year for residential tenancies and rooming accommodation agreements, with the annual limit applying to all new and existing tenancies as of 1 July 2023 and onwards.

The REIQ has cautioned the state government against the stage two rental reforms and are urging them to start to show “greater respect for the contribution that property investors make to the economy and housing sector.”

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