This week saw our local members of the REIQ (Real Estate Institute of Queensland) engage in our latest Zone Event
This week saw our local members of the REIQ (Real Estate Institute of Queensland) engage in our latest Zone Event – an opportunity to network among colleagues (and frequently competitors), and importantly – a rare chance to get local training on what has been a rapidly evolving legislative framework over the past 24 months.
As we’ve seen across TV, radio and print over the past months, the current rental market and incoming changes remain hot topics, with rental reform legislation having kicked in last year around how tenancies are ended (putting limits on when and how a landlord can end a fixed tenancy), we are now looking to the introduction of Minimum Housing Standards which will make very clear the expectations and requirements of a property before it can be offered for rent. From simple things like having working plumbing and keeping the weather out(!) through to offering privacy for tenants, this is a win all round for the vast majority, with the intention of removing from the market those properties which are frankly, unsafe regardless of price.
Less welcome (for landlords at least) are other recent changes to legislation around rentals, with the introduction of new limits on rental increases – now permitted just once per year from the first of July. Very important to note here though for those with existing leases with a provision for 6 monthly increases – while its perfectly legal now to have those kids of provisions, this new change will be retrospective – capturing those prior leases as well. This could leave landlords in the lurch if they’ve been banking on an agreed increase that falls less than 12 months since the last.
Now, as tempting as it is to say this is only fair, and tenants need more protection or a yearly increase is plenty – that’s a perfectly reasonable opinion to have. But we should ALL be concerned when legislation can be implemented in short order with minimal consultation AND be made to apply to existing contractual arrangements. Thankfully its more typical to have these kinds of moves be made gradually, applying to new agreements (or builds) before a more comprehensive rollout, but this is a potentially dangerous precedent to see.
On the sales side of thing, new disclosures are likely to be coming in, giving buyers more information on property BEFORE a contract is signed – a little closer to requirements in southern states. Buyers will still need to do their own homework, but they’ll at least have better directions on where to start.