How long-awaited reforms could cause rents to jump $5000/yr
MACKAY renters may have to scrape together an extra $5000 a year if the State Government has its way.
Proposed rental reforms in Queensland could send rents skyrocketing by $100 a week, according to property market analysis conducted by research firm Propertyology.
The firm's head of research Simon Pressley said rents in Mackay had already experienced a significant increase by $3000 over the past 12 months due to the low-vacancy rate and lack of product in the rental market and this would be a further pinch on the pocket.
The prospective reforms, introduced by the State Government, would prevent tenants from refusing pet applications without sufficient grounds and renters would be allowed to make modifications to properties without seeking permission.
"While tenants might think this new legislation is a dream come true, the probability is they will be faced with extreme household budget pressure sooner rather than later as rents will begin to skyrocket as investors leave the market," Mr Pressley said.
"And if this legislation is implemented, the expected reduction in rental stock would result in some of the lowest vacancy rates in the Sunshine State's history.
"Investors will desert the market in droves due to laws restricting asset ownership rights. And there will be a percentage of investors who may have been contemplating entering the market who will decide, 'this is not for me'."
Propertyology analysis conducted over the past week since the reforms were announced had projected rents would go up in every location across Queensland, with investors indicating they would consider leaving the market if the reforms were adopted.
"A mass exodus of investors would cause a drastic undersupply of rental properties in the state, which has the nation's highest rental population," Mr Pressley said.
Pointglen Developments development manager Vic Vasallo said he thought the reforms would discourage potential investors from entering Mackay's residential market.
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"While these reforms protect the tenant, I don't see reforms written to protect the investors' assets," Mr Vasallo said.
"However, increasing pressure on an already low vacancy rate and surging rents might make tenants consider buying their own property rather than rent."
Master Builders Association Mackay and Whitsunday regional manager Malcolm Hull said he thought the reforms were a terrible idea.
"Allowing tenants to take part in a free-for-all when it comes to modifying property in a home or unit that doesn't belong to them would be an absolute disaster,.
"These reforms will well and truly deter potential investors," Mr Hull said.
Mackay MP Julieanne Gilbert said these reforms had been looked at in Queensland because there had been a number of complaints from renters who feel as though they do not have a fair balance of power when it came to tenancies.
"The reform package is out for consultation and we want feedback from renters and investors on the reforms," Mrs Gilbert said.
"The package was launched on November 16 and the period of public consultation goes for six weeks from that date.
"We want to make sure we have a fair balance of power for the investors and the tenants."
Mrs Gilbert encouraged anyone who wanted to have their say on the State Government's tenancy reform package to visit: yoursayhpw. engagementhq.com/rentinginqld