New property reforms to complement limits on rent rises: Palaszczuk

Nick Gibbs | April 18, 2023

Changes to bond deductions, tenant data collection and property entry requirements could be on the cards in the next stage of rental reforms in Queensland.

The opening of public consultation on proposed laws follows a promise to limit rent increases to once a year amid some of the steepest rises in the country and a vacancy rate under one per cent.

“Solving the housing issue is a complex problem that needs partnership and collaboration across all levels of government, along with industry, investors and community organisations,” Premier Annastacia Palaszczuk told parliament.

Queensland Greens MP Amy McMahon criticised the government on a lack of consultation over the rent limit introduced on Tuesday and said the measure “will continue to allow landlords to raise rents by however much they’d like”.

To ensure rents are reasonable, groups including the Greens and the Queensland Council of Social Services want limits on the amount as well as the frequency.

“While a limit on the amounts that rents can be increased won’t be welcomed by all, it is important to recognise that Queensland is in a dire and growing housing crisis,” QCOSS CEO Aimee McVeigh said on Tuesday.

The state government says it wants to strike a balance between the rights of renters and landlords as it progresses the next stage of rental reforms.

Housing Minister Leeanne Enoch told parliament the laws aimed to improve transparency, accountability and fairness in the rental market.

Requiring landlords to prove tenants failed to meet their obligations when claiming bond money is among the proposals flagged in a 2023 options paper.

Invoices for cleaning or repairs, or inspection and exit reports, could be used as proof.

Renters are concerned existing protections against “unreasonable, unsubstantiated and inaccurate” bond claims are inadequate, the paper says, whereas property owners need adequate protections against unpaid rent and damages.

There is also concern about the secure storage of personal information collected as part of rental applications.

Some prospective renters are being asked to provide two years of rental history as well as copies of bank statements, driver’s licences or passports and proof of employment status.

Notice periods to enter a property for reasons other than a general inspection, such as maintenance, could also be extended from 24 to 48 or 72 hours.

The move comes amid a tight rental market across much of the state, according to new figures released by the Real Estate Institute of Queensland (REIQ).

The state vacancy rate has marginally improved from 0.8 per cent in the December 2022 quarter to 0.9 per cent in March 2023.

A healthy rate is between 2.6 and 3.5 per cent, the Residential Vacancy Rate Report says.

There was a heavy reliance on private investors and making the market less appealing with actions such as rent control was “not the right solution”, REIQ chief executive Antonia Mercorella said.

“We should be focused on the underlying cause of the rental crisis and increasing housing supply, including social housing.”

Adequate protections for tenants should be balanced against a “certain amount of flexibility and freedom” to ensure landlords were prepared to keep their property on the market, Ms Mercorella said.