Review of the Residential Tenancies and Rooming Accommodation Act 2008
As you may remember we provided information via our blogs and newsletters regarding the pending reform and how that reform may look based on the submissions received by the Queensland Government, mainly by tenants with overall little submissions received by Property Owners/Landlords and Property Managers.
On Friday evening The Minister for Housing and Public Works, Mick de Brenni has announced Stage 1 of proposed rental reforms that would significantly damage Queensland’s rental market and create the most onerous rental laws in the country.
If enacted, the law change would erode fundamental landlord rights and deter property investment across the state.
The reforms’ ripple effect would see renters struggling to find suitable housing under already tight conditions.
In a further blow to renters, by de Brenni’s own admission the reform would likely increase weekly rent from an average of $360 per week to $378, which is a massive 5 per cent rise.
The most controversial and damaging reform is the proposed abolishment of a landlord’s right to not renew a tenancy agreement at the end of its agreed term.
In practice, this will allow a tenant to remain in a tenancy indefinitely and for as long as they want unless the landlord can establish a reason prescribed by law.
This reform has been cleverly disguised by the Palaszczuk Government as the abolishment of ‘without grounds terminations or evictions’ - that description is inaccurate and misleading.
Under current rental laws, landlords cannot end a fixed term tenancy agreement before it ends unless a breach has occurred.
Other proposed reforms include:
• the loss of a landlord’s right to refuse pets;
• the introduction of a tenant right to make modifications to a rental property without the landlord’s consent; and
• the introduction of minimum housing standards requiring the rental property and its inclusions to meet prescribed standards and to be in a certain state of repair.
Queensland has one of the highest proportions of renters in Australia with more than 34 per cent of Queensland households in the rental market.
The vast majority of rental housing is provided by everyday Queenslanders, and many of those are already making a loss on their investments.
Given the significance of these reforms, we are disappointed that the Minister is offering a mere six week consultation process after waiting a year to announce these reforms.
On its face, the Government may think it is protecting tenants but in reality, we are likely to see housing supply reduce.
There will be no winners.
As a community, it's time for us to unite and fight against these damaging and disingenuous reforms, which will negatively impact both landlords and renters.
The below information has been sourced from the document attached called Review overview. Stage 1 has been released as part of a Consultation Regulatory Impact Statement.
The 5 key areas of reform are noted below and detailed in the Consultation Regulatory Impact statement. Stage 2 is expected to be released later in 2020. The legislative amendment bill is the next part of the process.
Sourced from Consultation Regulatory Impact Statement Stage 1 reforms – page 28 & Realestate Excellence
1. Managing tenancies
Amend the RTRA Act to remove the ability of a property owner to end a tenancy without ground
Amend the RTRA Act to specify additional grounds for an owner or a tenant to end a tenancy
2. Safety and security Housing quality and Minimum Housing Standards
Apply Minimum Housing Standards in regulation
Amend the RTRA Act to enhance tribunal repair orders
Amend the RTRA Act to increase the time for tenants to return a condition report
Amend the RTRA Act to require property owners to provide owner and nominated repairer contact details
Amend the RTRA Act to allow tenants and property managers to authorise emergency repairs to the value of four weeks’ rent
Amend the RTRA Act to prescribe maximum timeframes for Minimum Housing Standards repairs
3. Domestic and family violence protections
Amend the RTRA Act to allow people experiencing domestic and family violence to end a tenancy at short notice
Amend the RTRA Act to allow people experiencing domestic and family violence to more easily access rental bond funds
4. Minor modifications
Amend the RTRA Act to allow tenants to make minor modifications for disability, security and health and safety reasons without the property owner’s permission
Amend the RTRA Act to require property owners to respond to tenant request for other minor modifications within seven (7) days
5. Renting with pets
Encourage voluntary information disclosure by tenants and property owners relating to pets
Amend the RTRA Act to provide for pet bonds and special pest control conditions
Amend the RTRA Act to require property owners to provide reasonable grounds for refusing a pet
Amend the RTRA Act to allow property owners to obtain QCAT orders excluding pets from a property
We STRONGLY suggest all landlords have their say by completing a submission to the government via the filling link here
The following documents have been attached for your reference and review;
Q STATE PROPERTIES
Ph: 1300 Q STATE
Information Sourced from Queensland Government, Realestate Excellence and REIQ
This article is for general information purposes only and must not be taken as legal, financial or any other professional advice. We recommend obtaining advice specific to your situation before making decisions relating to your investment property and financial position.
A Buyers Agent is an independent licensed real estate agent that works for the buyer. They will have their clients best interests at heart and negotiate and act in favour of their client. They are not the selling agent who is working for the seller, we do not receive kickbacks, commissions or rebates from any other source. The buyers agent sole focus is to undertake a step by step process that ensures that the buyer purchases the best possible property to suit their needs, at the best possible price and conditions. The service can be all inclusive, or you may wish to engage a Concierge Service as required.
The buyers agent should work with you, they should find out what is important to you. For example; What kind of property are you looking for? What are your wants and needs? What area are you hoping to purchase in? This information allows the buyers agent to start the search for your ideal purchase. They will undertake the due diligence and legwork to create a short list of possible properties to review. They should be able to eliminate any properties that appear relevant, but on further inspection aren’t quite right. The buyers agent will use their working relationships with selling agents to review any “off market” listings and new upcoming listings.
The buyers agent will provide analysis of any shortlisted properties. Analysing the quality and value of the property, the listed price, the current market conditions and anticipated value.
Once a property has been selected the Buyers Agent will negotiate on your behalf, they are experienced negotiators and will work to achieve the best possible price, or to represent and bid for you at auction.
The Buyers agent service also includes Pre Settlement and Contract Conditional Process. Managing the conditional phase of the contract to ensure that all obligations and deadlines are met. The introduction or liaising with solicitors for conveyancing and arranging of building and pest inspections. The buyers agent will also attend pre settlement inspections to ensure that everything is in order prior to settlement.
Buyers agents are becoming increasingly popular in Brisbane and across South East Queensland. Whether you are a first home buyer, a property investor or looking to purchase a million dollar investment, we can help you with your property journey, to find out how contact us today. Visit www.qstateproperties.com.au or call on 1300 778 283.
Negotiating skills are essential to have in many situations particularly when you're navigating the purchase of large items or assets. With the high value that property transactions attract, knowing how to navigate the negotiation process is crucial. Not only can strong negotiation skills help you in other areas of your life, but it can save you thousands of dollars. Here are a few things to remember when you're negotiating your next property transaction.
It's got to feel win-win
The negotiation process needs to feel like a win for both parties in a transaction. If you negotiate too hard with a seller, they may not take you seriously, and the sale won't proceed. Similarly, if the seller negotiates too hard, you may be inclined to walk away. The key here is finding the middle ground for both parties to be happy with proceeding.
It's not all about dollars
While negotiating price is a big part of the property purchasing process, there are other terms and conditions that you shouldn't forget either. For example, as you negotiate on price, you can negotiate other terms and conditions too such as included fixtures and furnishings, finance terms, and building and pest terms. If you're buying a new property, you may have additional non- financial items you could negotiate as well including discounts on certain finishes and upgrades.
Knowledge is power
Entering a negotiation without adequate knowledge will diminish your chances of getting what you want out of the transaction. When you're purchasing a property, make sure you invest the time in building your knowledge base about the local property market, relevant property sale comparisons, and rental yields for the area. At this point, it may be worth paying for information if it will save you time and help you determine whether to proceed with the transaction in the first place.
Keep your options open
You never want to enter a negotiation appearing like this is your only option. Make sure the other party is convinced that you're looking at other properties and you have other options. Simply mention that you're looking at other options as you lay out the facts and figures in the negotiation process.
Have an expert help you
If you're new to negotiating, or the thought of negotiating a big transaction intimidates you, invest in getting some coaching to help you through the process. You could even engage someone to help in the property purchase process directly. Q State Properties can assist with our Buyers Agent Service.
If you would like to know on how we can help you with your next property transaction please do not hesitate to give us a call on 1300 778 283 or email firstname.lastname@example.org
The holiday season a perfect time to catch up on reading. If you're typically a nonfiction reader, your reading time can be put to good use by learning more about property investment in Australia. Here's our list of property investment books that will help you learn while you recharge for 2019.
From 0 to 130 properties in 3.5 years - Steve McKnight
Steve McKnight's From 0 to 130 Properties in 3.5 Yearsis an inspiring read that shows readers how McKnight and his business partner built their portfolio. The book includes details about the individual properties that make up their portfolio and an outline of the numbers on each property. If you're aiming to build a cash flow positive portfolio, this book will help you understand the numbers and Australia's property market, while sharing details about how to effectively manage your finances.
How to Create an Income for Life - Margaret Lomas
Margaret Lomas has written several books about property investment, particularly positive cash flow properties. In How to Create an Income for Life, Lomas discusses not only how to build a cash flow positive portfolio, but she also touches on how to achieve financial freedom.
Rich Dad's Guide to Investing - Robert Kiyosaki
No investment reading list would be completed without Robert Kiyosaki's books! Covering investing in general, Kiyosaki's Rich Dad's Guide to Investing provides an insight into share trading and how to approach your property investing with a business-focused mindset. Following on from his first two books, Rich Dad, Poor Dad and The Cash Flow Quadrant, Kiyosaki's books will help you understand investment principles that stand the test of time across all asset classes.
Your Property Success with Renovation - Jane Slack-Smith
If you're keen to get your hands dirty, finding renovators can be an excellent way to enter the property investment market. In Your Property Success with Renovation, Jane Slack-Smith details the foundational principles of effective investing. Slack-Smith then covers how you can build a profitable portfolio by renovating properties.
The Advanced Guide to Real Estate Investing by Ken McElroy
Ken McElroy's, The Advanced Guide to Real Estate Investing is a helpful book for seasoned property investors. In this book, McElroy shows readers how to think and operate like a property mogul. He covers things like identifying profitable deals, effective tax structures, and how multi-family housing can help you build your portfolio.
As a property investor, there's a lot you need to manage every day. We as your property manager take care of most of the everyday administration of the property, there are a few key things you need to do for your portfolio to be set up for long-term growth. Here are 4 things you need to do to stay focused and avoid financial pitfalls in your portfolio.
Be diligent with maintenance
It may be tempting to hold off on replacing the old oven or dishwasher that continually breaks to save money, but it could turn into a costly problem later. When you purchase an investment property, it is advisable to set up a regular maintenance schedule with your property manager and/or accountant. Having a regular maintenance schedule for your included fixtures and furnishings, routine inspections and exterior property maintenance will keep your property in good condition; We can assist with this forward planning of the maintenance by withholding weekly amounts of your weekly rental disbursement, for example, $10 per week. Keeping your property in good condition is also crucial for attracting quality tenants who pay their rent on time.
Decide between self-managed or professionally managed
Fancy managing your portfolio yourself? When you're making this decision, weigh up how much time and energy you're likely to spend on managing your portfolio and if this is something best left for a professional. Sure, if you have the time in your week self-managing your property may work for you but if this is something you know you won't be diligent about, the property management fees will outweigh problems as a result of pitfalls found whilst self managing your properties.
Focus on your portfolio's individual needs
When the recent mining boom happened in Queensland, some investors entered this market at the height of the boom. Unfortunately, at this point, there was only one-way property prices in these regions were going. When particular regions or cities are growing rapidly, make sure you seek the advice of an experienced professional, conduct your own due diligence reports - analyse and objectively weigh up if the investment will be reflective of your long-term investment goals.
Play the long game
This builds on the last point. When you set out building your portfolio, we all know property is a long-game. Yes, we've seen people make astronomical returns in Melbourne and Sydney in recent years but buying in the hope to flip the property for a profit in a few years could be futile unless you have a specific and tested strategy. Property investing, in general, is something that requires a long-term focus. Make sure you determine your long-term goals with a trusted advisor when you first establishing your portfolio. With a long-term strategy in place from the outset, this will give you something to guide your decision-making for future investments.
Property investing is an excellent vehicle for building long-term wealth. Make sure you're making decisions for the benefit of your individual portfolio and surround yourself with experts who you trust.
Call us at anytime to discuss in depth your property requirements and how we can assist you in building your successful property portfolio.
Q STATE PROPERTIES
Ph: 1300 Q STATE
We all know the basic premise of value growth in most industries is supply and demand. For the property market, demand is a property investor's best friend. To understand the state of supply and demand across markets in Australia, there are specific indicators to keep an eye on as you research. Here's our list of some of the indicators that you can monitor to get a detailed idea of supply and demand in a market.
Days on market (DOM)
The number of days that a property is on the market indicates how quickly properties are moving. As demand exceeds supply, the DOM will decrease, indicating a potential growth and in-demand suburb.
Discount to the sale price
Monitoring the sold price of properties and comparing it to its listing price will indicate the discount price on each property. As suburbs become more popular, the discount price will decrease.
Auction clearance rates (ACRs)
Auction clearance rates (ACRs) are a good indicator of the popularity of an area. When ACRs are high in an area, it's likely that many bidders are competing to purchase a property in the area. Higher ACRs are common in strong investment markets.
Proportion of renters vs owner-occupiers
The proportion of renters in an area indicates the number of renters in an area compared to the overall population of the area. The higher the proportion of renters, the more landlords you may need to compete with when you list your property for rent.
Vacancy rates will be low in areas that are in high demand for renters. In contrast, vacancy rates can be higher in less popular areas. Keeping track of vacancy rates compared to other factors such as rental prices, location, and demographics, is another good way to identify growth suburbs.
It's important to remember that there's no perfect suburb, but you can find a suburb that closely meets your desired price and growth projections and individual investing goals by taking these indicators into account.
Once you've found a specific market or property to monitor, make sure you're proactive about due diligence and talk to a trusted legal and financial advisor. This will help in identifying and mitigating risks as you change and grow your property portfolio. Remember, everyone has their own individual goals with their property portfolios so don't get distracted by the "next big thing." Instead, stick to your long-term goals and make sure any changes to your portfolio are aligned with these goals.