Rental reforms not hitting the root of the crisis

Haesley Cush, director of Living Here Cush Partners, a leading voice in the Brisbane real estate market, says that he is frustrated at the lack of helpful government action on the rental crisis.

“There are 50,000 people waiting for public housing, hundreds of applications on available properties and huge levels of homelessness,” he said.

“This just sounds like more noise to distract, and more finger pointing out the window rather than in the mirror.”

A considered response from the REIQ, lead by CEO Antonia Mercorella, outlines the response from the industry and private sector.

“The finger pointing in these reforms I’m referring to is on rental bidding, capping bonds and tying rent increases to the property rather than the tenancy,” Haesley said.

“Bonds are already capped below $700 per week at four weeks rent and bidding wars are already prohibited, but higher offers are happening because desperate tenants are offering above the asking rent to stand out.”

This current reform prevents rent increases in a 12 month period for a property. This means that even with a new tenant, if the property sells to a new investor or you’ve renovated, you cannot increase the rent.

“These constant changes just dent investors' confidence and will make it even harder for tenants, if owners continue to sell to flee the red tape.”

Overwhelmingly, the industry has more questions than answers as to how these reforms will fix the current rental issues at hand.