‘Ludicrous’: Greens’ rental reform attempt blasted

According to the Real Estate Institute of Queensland (REIQ), it’s “a recycled policy position from years ago disguised as a necessary response to current tight vacancy conditions”.

REIQ CEO Antonia Mercorella has acknowledged Queensland’s rental market as “under enormous pressure as more people choose to both remain as well as make Queensland their new home”.

But she said “it’s critical we continue to attract property investors to improve rental supply and keep pace with demand so as to maintain rental affordability”.

“What we don’t need is ludicrous rental reform proposals like we’re seeing from the Greens,” she argued, considering it as “completely unrealistic to expect that lessors will continue to invest in Queensland real estate if faced with untenable arrangements that don’t allow them to protect the value of their asset and strips them of fundamental decision-making powers and rights”.

Key proposals under the bill include:

• The capping of rent increases to once every 24 months and by no more than CPI annually.
• The scrapping of “no grounds evictions”, which the REIQ said would prevent lessors from being entitled to end a fixed-term tenancy at the end of its agreed term.
• A restriction on lessors’ rights to end tenancies. According to the institute, this will effectively restrict lessors from giving notice to leave unless it’s for required occupation by the property owner (or owner’s close family) or on account of major renovations to be made to the property.
• The bill also excludes the right for owners to issue notices to leave where they intend to sell the property.
• Banning rental bidding.
• Allowing tenants to make property alterations without their lessor’s permission.

The REIQ said the “most damaging reform” as proposed is the abolishment of a lessor’s right to not renew a tenancy agreement at the end of the agreed term.

It flagged that this would allow a tenant to remain in a tenancy indefinitely — unless the lessor can establish one of two grounds under the Greens proposal.

Ms Mercorella said the reform attempt “has been cleverly disguised” as the abolishment of “without grounds terminations or evictions”.

“What they’re describing is inaccurate and misleading because under Queensland law, lessors cannot evict tenants for no reason during a fixed-term tenancy agreement. By tying the hands of lessors behind their backs, what the Greens are really seeking is for tenants to have the right to stay in a property until it suits them, to make modifications as they please and keep pets in the property without seeking consent,” Ms Mercorella argued.

“Meanwhile, lessors won’t be able to even request tenants pay market rent.”

The CEO said that if the reforms were passed by Parliament, “no lessor will choose to invest in Queensland property”.

With investors able to access any number of asset options, Ms Mercorella conceded that “if their rights to manage an investment property are removed, they’ll simply choose to invest elsewhere”.

“What we need is a regulatory framework that provides security for both tenants and lessors. A balance must be found, but it won’t be if the Greens have their way,” she said.

According to the state body, Queensland already has some of the country’s most comprehensive tenancy protections in place; rent bidding prohibitions and strict rent increase rules and protections already exist.

“What this shows is that the Greens have a legitimate lack of understanding of what’s already contained within current legislation,” she said.

The institute also took aim at the Greens’ failure to understand the fact “that rental caps don’t do anything to resolve the reason rents are rising, which is because there are more people who want to live in Queensland than there are dwellings for them to currently live in”.

The Australian Bureau of Statistics (ABS) has shown a net inflow of 25,000 into the state over the last 12 months alone.

Ms Mercorella said that it’s the highest level of net interstate migration Queensland has seen for around 20 years.

“We’ve also seen fewer people leaving Queensland, with departures at their lowest level since December 1994,” she said.

“Ultimately, as migration continues and more Queenslanders remain, there will continue to be fewer rental properties.”

The CEO also warned that the introduction of rental caps would mean even less stock will be available — with investors less motivated to supply future rental housing, in turn causing renters “to be further affected”.

In conclusion, Ms Mercorella called for “more incentives to better support both increased and ongoing property investor activity in the Queensland property market and the contributions they make to the state economy”.

“What we don’t need is reckless and damaging rental reforms as proposed by the Greens that don’t offer any benefit to Queensland’s rental market whatsoever,” she said.