Rental Reforms Update

Dear Members
 
On 27th December, the REIQ submitted its response to the Consultation Regulatory Statement (“RIS”) – Review of the Residential Tenancies Rooming Accommodation Act 2008 (Qld) (“RTRA Act”) regarding the proposed rental reforms, announced in November last year.
 
Since the announcement, we have expressed grave concerns about the impact the proposed legislative changes would have on the stability of the rental market. The reforms, if introduced, would in our view, erode fundamental owner rights, increase owner risk and cost and negatively impact the appeal of property investment. Rental supply is almost certain to be affected and rents are likely to rise. There will be no winners.
 
Summary of the REIQ’s submission
 
It is critically important that any future changes to the RTRA Act strike an appropriate balance between the rights of the tenant and property owner. Current and future supply of rental accommodation relies on a fair and balanced legislative framework. Some of the proposed recommendations pose a serious threat to the security of the rental sector.
 
The REIQ also called on the State Government to conduct a review of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (“QCAT Act”) alongside its review of residential tenancies laws.
 
We believe that QCAT is not sufficiently resourced to manage residential tenancy disputes in a time effective manner. Additionally, there a range of problems and inefficiencies associated with QCAT processes. Owners and property managers regularly report that disputes are not pursued due to the time delays and challenges associated with QCAT. The proposed reforms in the RIS are likely to increase the level of residential tenancy disputes and add further pressure on QCAT.
 
The REIQ’s position on the five key proposed reforms in the RIS, detailed within our submission, is outlined below:
 
1. We absolutely reject the proposed abolishment of an owner’s right to terminate a tenancy on a without grounds basis.
 
2. We reject the proposed recommendation requiring owners to consent to pets unless they can establish reasonable grounds. We support the introduction of risk mitigation measures and incentives to encourage owners pet ownership in rental properties. For example, the introduction of pet bonds and higher rents.
 
3. We do not support the minor modification reforms proposed in the RIS. We support the introduction of changes relating to minor modifications requests pertaining only to safety, health, accessibility and basic telecommunications subject to the development of an appropriate definition of minor modifications and the implementation of an owner approval process.
 
4. We do not support the minimum housing standards reforms proposed in the RIS. We support the introduction of minimum housing standards for matters related relating to health, safety and security subject to the development of the scope and nature of the standards.
 
5. We do not support the domestic and family violence reforms proposed in the RIS. We do however, support the introduction of additional security and safety measures for domestic and family violence victims and the introduction of a more streamlined system to allow them to end a tenancy early.
 
The submission was the culmination of several weeks of dedicated advocacy by the REIQ, with the welcome support of its members and affiliates.
 
We were overwhelmed by the response of the real estate community, who helped the REIQ make a real impact, prompting the Minister of Housing and Public Works to attend a town hall meeting hosted by us.
 
As a collective, you have sent nearly 8,000 letters to Premier Annastacia Palaszczuk to request that the Government reconsider these onerous rental reforms.
 
Your voices have been heard and we will continue to advocate for fair and balanced rental reforms.
 
Thank you for your outstanding support on this critically important issue.
 
Antonia Mercorella
REIQ Chief Executive Officer

---