QLD? Rental Reforms - Have Your Say in QLD Premier Proposed Reform

Discussion in 'Property Market Economics' started by trinity168, 27th Nov, 2019.

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  1. thatbum

    thatbum Well-Known Member

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    ...the same way any breach of the lease agreement is "managed" at the end of a tenancy? And "rectified" means exactly the same as what it means at the moment.

    Honestly its probably going to be exactly the same as the current laws except that tenants can make those minor modifications during the tenancy without seeking permission. If they fix it back to however the landlord wants it to be at the start of the tenancy when they leave, why would a lessor even care?
     
  2. Angel

    Angel Well-Known Member

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    @thatbum
    Have you ever had a tenant repair their "modifications" to the same as it was before? Whether it was a child safety gate across the stairs (it would have looked better if they just left it there) or hooks for a clock on the lounge room walls, I can assure you they never re-plaster and repaint to the same standard that us owners do. They either use the wrong coloured paint or the wrong type of paint or stuff a hole with tissue paper and toothpaste or whatever. When their dog scratches a hole in the carpet, you can guarantee that any repair will stand out like a great big bloody piece of the wrong coloured carpet in the middle of a faded and half-worn out carpet.
     
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  3. Angel

    Angel Well-Known Member

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    Moral of the story - they are going to bring in pets anyway, and their daughter is going to spill nail polish remover all over the bedroom carpet, so just neglect replacing the carpets until it is time to sell.
     
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  4. thatbum

    thatbum Well-Known Member

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    To me they just seem like really weird things to care about in the grand scheme of things. If you're serious about property investment, they just seem like just petty things to care about. I mean we're in the business of providing long term rental accommodation in exchange for money - are we really going to have tantrum over a slightly different shade of white paint that was used when patching up a hole?

    I would kind of get it if its your PPOR and you're precious about the exact state or look - and to those "investors" I would say you're in the wrong line of investment, because you don't get that level of control when providing long term accommodation - maybe something more short term (and the extra control it affords) might suit instead.
     
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  5. Angel

    Angel Well-Known Member

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    Do you know what a hissy fit can result when they repaint your semigloss hogs breath half strength walls with full gloss lexicon enamel?

    It's OK, I agree that these are not the end of the world problems. I'm more suggesting that there is no such thing as a tenant who returns the property to its previous state.
     
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  6. wylie

    wylie Moderator Staff Member

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    Each time a tenant patches or repairs something and it looks “not quite right” that means less chance of getting good rent.

    We’ve had potential tenants turn up their noses due to sometimes very simple things. Our houses have never been fancy but we used to regularly repaint when things got tired or “make good” after general wear and tear as tenants leave after several years.

    I guess if the rules change then every house may be “modified” and then “rectified” at the end of the lease so unless the owner fixes the “fix ups” then I guess everyone will be in the same boat.
     
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  7. Codie

    Codie Well-Known Member

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    All though that article may be inflated. The fact is property is all ready a fairly active asset class (if you compare it to shares) with large entry/exit costs, maintenance, and this reform giving owners even more potential things to worry about, it’s going to impact a large amount of people looking towards other asset classes.

    Property chat is not the majority and there’s plenty of mum & dads with horror tenant stories that this will scare off.

    That article suggests it would cause Brisbane’s rent to climb $50 a week over a 2yr period, and I don’t see that as being far fetched. If just 5% drop out and we see vacancy rates in the high 1s (remember Hobart took off at these levels)

    I’m not worried about it at all, due to where I own and the tenants that rent here, as well it’s I can fix Stuff myself. Worth it for another $50 a week
     
  8. Melbourne_guy

    Melbourne_guy Well-Known Member

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    .....and there are likely more tenants with plenty of landlord related horror stories.

    The entire private rental sector needs a revamp to improve tenant safety and 'livability'. Whether I'd go as far as welcoming tenants undertaking non-agreed modifications, I'd prefer to wait and see the scope of the new law surrounding it. It could turn into a minefield.

    Landlords need to take the emotion out of their property and give people who pay rent have a right to accommodation that they can enjoy safely. Landlords who do the right thing should welcome the news and its a first-step to drive out rental industry cowboys.
     
  9. gman65

    gman65 Well-Known Member

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    If you were in Sydney and Melbourne where avg ~7% returns over the last 10 years were the norm, you'd tend to forget the small stuff.. In Brisbane, given a lower ~3.5% growth rate, a couple of grand in extra costs in a year might be enough to tip some investors over the edge - esp considering shares return a lot more than that with a lot less effort. Maybe you have lots of time on your hands, but going out to fix issues yourself is a pain in the butt.

    The next tenant probably will... especially in a well supplied rental market where they can pick and choose. Esp given the modern world where everybody wants a show home for a rental (usually why they continue to rent).
     
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  10. wylie

    wylie Moderator Staff Member

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    Because we used to regularly paint through between tenancies (if required) this always kept our houses fresh but one lot of tenants drilled two 1cm holes in our VJ walls that required filling and painting.

    Same tenant removed the clothes line. Tenant did not remedy or fix but happily allowed us to take enough bond for repairs. So I do think many tenants would not repaint, patch walls as they leave. They have enough going on with cleaning and moving a whole household.

    So for me the biggest downside would be a week of lost rent whilst we fix what the tenant doesn’t do.
     
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  11. Codie

    Codie Well-Known Member

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    Yep I’m sure there is. I’m just pointing out there’s a massive part of the investor population that will decide it’s all too hard, move to other assets, vacancy rates will drop, and rents will rise. So if tenants are going to pay more to be able to hang some pictures on a wall I’m all for it.

    I agree there’s a right to safety.

    There’s not a right to destroy floors because you have 3 dogs & concrete or turn the lawn to dirt because you can’t be bothered mowing it. Sounds extreme but we have to play to the 1%, and as the owner of a property, it’s a right to be able to choose what happens to it.

    Just because you pay $ to rent a car, doesn’t mean you can paint it red.
     
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  12. sash

    sash Well-Known Member

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    Awesome news..... this will increase rents in Qld!

    Dumb...dumb idea...but hey...if they want to do it...who am I to argue.
     
  13. kierank

    kierank Well-Known Member

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    Then I will have pay more tax :eek:.

    I think I will vote against the reforms!!!! :D
     
  14. Melbourne_guy

    Melbourne_guy Well-Known Member

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    I don't think we are in disagreement but how do you achieve the aim of ensuring tenants safety and allowing them the right to living a similar life to others if it isn't legislated for? It is unlikely the attitude of many landlords will change unless forced to. I'm not advocating giving tenants a blank cheque right to do whatever they want but on the flip-side, unethical landlords hold an unfair balance of power making it difficult for the tenant to have a similar everyday living as others take for granted. There needs to be a balance and only strong legislation with the provisioning of suitable enforcement, can do that.

    As for increasing rents, if landlords thought the rental market could allow for increased rents now, then rents would increase. Hence, I'm sceptical on claims that legislation would increase rents but more certain that costs would be passed onto the taxpayer in the form of higher negative gearing charges.
     
  15. Codie

    Codie Well-Known Member

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    So I understand where your coming from are you able to give any examples of what you mean by unethical landlords? I can’t say I personally know any, so I’m not sure what constitutes as that (genuine question)

    As for the rents increasing, I’m not sure you understand how it works, it’s not about landlords thinking they can increase rents now. It’s supply and demand, with less rentals available, not a lot of supply coming online, but an increasing migration to QLD right now. If we have less investors in the market willing to supply housing, rents increase. If you have 8 people applying for 1 property, simple metrics point towards a price increase. We invest to make money, if someone will pay it, so be it.
     
  16. spludgey

    spludgey Well-Known Member

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    I'm all for the reforms.
     
  17. ozwanderlust

    ozwanderlust Well-Known Member

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    Our PM in QLD emailed us a week ago to partake in the survey by the government and to write to the premier (standard letter from REIQ for adaptation).
    Just curious to know if any / many from this forum have participate in these? We are thinking of just sending the email and not to do the survey.
     
  18. ozwanderlust

    ozwanderlust Well-Known Member

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    For our particular situation, the proposed "ending a tenancy" may give us a major concern. We will be wanting to sell our IP in QLD in the next year or so. Reasons: not much capital growth compared to IPs in other states, draconian council taxes (for IPs) and exorbitant land taxes for properties owned by companies / trusts. We would want to give (the required time notice) tenants notice to vacate / end a tenancy to enable us to fix / renovate / improve the property for sale.
    From what we read, six options considered:
    Option 1: Status quo (no changes).
    Option 2: Undertake an enhanced education and awareness program to improve transparency regarding ending a tenancy.
    Option 3: Remove ability for ALL parties to end tenancy agreements without grounds.
    Option 4: Remove ability for ONLY property owners and managers to end tenancy agreements without grounds.
    Option 5: Require property owners and managers to only end tenancy agreements for approved reasons (and introduce additional grounds).
    Option 6: Retain ability for all parties to end tenancies ‘without grounds’ but extend the notice period for owners as a deterrent from misuse.
    The recommended option
    Option 5: Require property owners and managers to only end tenancy agreements for approved reasons (and introduce additional grounds).
    Q: What would be the approved reasons? Is the sale of a property an approved reason? If not, we would be considerably disadvantaged in selling the property with tenants in it. Please correct us, if our understanding is incorrect. TIA.
     
  19. trinity168

    trinity168 Well-Known Member

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    I have participated in the survey.
     
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  20. Waterboy

    Waterboy Well-Known Member

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