In response to the difficulties facing renters, the Queensland Government has proposed a rent cap to give them a fairer go.
Queensland’s government is promising tenants more equitable treatment with their alterations, yet some are cautioning that these reforms are not enough.
Currently, rents can be increased every 6 months. This proposal suggests it would be changed to every 12 months. Most tenants are locked into a signed 12-month lease and the tenants in a 12-month lease can’t have a rental increase during their 12-month lease period unless it’s already written into the lease. So while this change is good for tenants I assume it won’t make that much difference.
Residents of Queensland would no longer have to worry about a rent hike every six months, as the timeframe has been reduced to once a year.
Annastacia Palaszczuk, the Premier, announced a plan to reconcile property owners’ interests with those of tenants by striving for equilibrium.
The rising cost of rent is causing many to become homeless, leading to tent cities appearing in public areas throughout Queensland.
Ms Palaszczuk made clear that most landlords treat their tenants properly, but those who do not should take heed of her message.
To ensure a steady supply of rentals, we will take action to bring forth reforms that will balance the needs of both Queenslanders who rent and those who own property.
Despite this, some suggest that more should be done to safeguard tenants in light of the rising expenses, with Queensland being the leader in the nation regarding escalating rental fees.
Q Shelter, a housing advocacy group, expressed their satisfaction that the rate of rent increases has decreased but are apprehensive about what could transpire if there are no boundaries on how much rents could rise.
Executive director Fiona Caniglia commented on the matter.
The rising cost of mortgages is having an effect on property investors while tenants are facing the possibility of homelessness due to the large scale of rent hikes, according to her.
The Premier of Queensland, Annastacia Palaszczuk, has stated that the alterations to the rental market will result in a fairer system.
Capital gains have been the benefit of many property investors, while tenants have experienced difficulty in covering the rent costs that have escalated far beyond the rate of inflation in a number of cases.
Rent hikes beyond what is reasonable often result in homelessness, adding to the strain already placed on aid systems due to higher numbers of people needing assistance.
Penny Carr, the leader of Tenants Queensland, has declared that additional measures must be taken to shield tenants from “exorbitant” cost increases.
She voiced her opinion that the proposed plan of reducing rises in cost will not be sufficient to stop the market manipulation of prices.
Ms Carr reported that Tenants Queensland had been contacted by approximately two hundred individuals this year, who were experiencing an average rent hike of 20 per cent, equating to around $100 extra a week.
She noted that only 15 of the calls were at the inflation rate or below, while the vast majority were much higher than the Consumer Price Index, making it extremely hard for renters, particularly those on fixed incomes.
A round table discussion was conducted to contemplate possible solutions to the housing crisis in Queensland.
Ms Caniglia implored the Queensland government to take into account implementing a limit on the rises in rent to protect tenants from those who are exploiting the current low vacancy rates of properties.
The speaker declared that, although many individuals act responsibly, there is not a call for rent freezes.
Given that more people are now depending on renting out privately owned properties to be their homes, we believe that adjusting rent prices in line with inflation is a fairer option.
Tenants Queensland is advocating for the state government to put into place a rent cap that would be determined by the consumer price index. This, according to them, would still be profitable for investors while also providing renters with a sense of security.
Ms Carr commented on the Premier’s discourse on rent stabilisation, but questioned if simply capping the rate of rent increases would be enough to create a steady rent market.
The biggest challenge for property investors right now is not inflation but home loan interest rates. It’s these increases that are crippling property investors and their ability to service the loans. Asset Agents has many investors where their loan repayments have increased by around $500 a week which is far higher than the impact of inflation.
An extra $28m was allocated in order to extend the Immediate Housing Response Package for a further 12 months as part of the reforms.
In Queensland, the government has put in place over 600 emergency lodging sites, as well as providing rental and security deposits for renters.
An allocation of $3.9 million will be available for food and emergency assistance, including providing vouchers, delivering food parcels and contributing to utilities such as electricity bills.
Property investors now more than ever need to be looking at how can they manage their investment loans & repayments.