Greens Target Brisbane LGA Rent Freeze

November 8, 2023 Edward Dever

To date, The Greens have tried and failed twice to implement a rent freeze in Queensland and once at the Federal level. In this latest attempt, 2024 Greens Lord Mayoral candidate Jonathan Sriranganathan plans to implement a two-year rent freeze on residential properties in the Brisbane local government area, backdated to January 2023. This assumes The Greens control Brisbane City Council after the election in March 2024.

To implement their plan, The Greens propose to control rents via penalty rates applied to any investor who raises rents above January 2023 levels. Rental properties where rent has increased would be "reclassified into the new ‘Uncapped rental home’ rating category."

The penalty is an additional 650% of the current rates bill so the total rates bill would be 750% higher following The Greens' market intervention. Using The Greens' example of a unit rented for $750 per week with a rates bill of $1,500 per year, any rent increase would result in an extra rates bill of $9,750, with a total rates bill of $11,250.

Any landlord who has increased rent with the tenant's agreement between January 2023 and the Council election in March 2024 would be penalised, whether that rent increase was less than 1% or 30%.

The Greens' plan is to apply the rent freeze to the property rather than the tenancy and to use median suburb rents for any new build or substantial renovation.

Penalty rates are claimed to be revenue neutral as the Greens contend that landlords will not put up rents. However this ignores the fact that many landlords will have raised rents over the 15 month period prior to the 2024 Council election.

Landlords in Brisbane (and elsewhere in Queensland) are currently subject to an effective 12 month rent freeze following the State Government's amendments to the Residential Tenancies and Rooming Accommodation Act preventing landlords from increasing the rent within a 12 month period.

Rent controls in other jurisdictions (such as Ireland and San Francisco) have resulted in reduced residential rental supply as landlords change use to avoid the controls or sell out of the market. It also acts as a disincentive for new investment builds. (Note that The Greens plan to increase rates for Airbnb-style properties by 1,000%.)

Any developer who views The Greens as potentially controlling Brisbane City Council post-March 2024 is likely to look more favourable at projects outside the Brisbane LGA (e.g. Redcliffe, Logan, Ipswich) rather than risk the imposition of a two-year rent freeze on their projects.

Similar to the Queensland government's proposed (then scrapped) land tax changes, the prospect of a rent freeze throughout Brisbane is likely to alter investors' decisions well ahead of any actual imposition of a freeze.

Lord Mayoral candidate Jonathan Sriranganathan proposes two-year rent freeze in Brisbane

Freeze Rents in Brisbane: No more unlimited rent increases

November 2023

The content of this publication is intended to provide a general overview on matters which may be of interest. It is not intended to be comprehensive. It does not constitute advice in relation to particular circumstances nor does it constitute the provision of legal services, legal advice or financial product advice.

Qld's New Rules On Pets In Residential Tenancies Commence 1 October 2022

February 25, 2022 Edward Dever

Queensland’s rental reforms regarding pets in residential rental properties commence on 1 October 2022.

From that date: "If a renter requests to keep a pet, a rental property owner must have reasonable grounds to refuse and respond in writing to this request within 14 days. Reasonable grounds include if the property is unsuitable, and if keeping the pet would breach laws or by-laws.

Rental property owners can also place reasonable conditions on pet ownership, including that the pet is to be kept outside or that carpets are cleaned, and the property is fumigated at the end of a lease. A rent increase or bond are not reasonable conditions. The laws also clarify that fair wear and tear does not include pet damage.

Minimum housing standards for Queensland rental properties will start applying to new leases from 1 September 2023 and to all rental properties from 1 September 2024."

Date set for remaining Stage 1 Rental Reforms to commence

February 2022

Covid-19 Land Tax Relief - How Qld and NSW Programs Differ

September 18, 2020 Edward Dever

Covid-19 has shown that Australia is a collection of States and Territories rather than one nation.

Australia has become a quagmire of different rules for travelling between States. We have seen different rules apply to similar events such as funerals depending on your State.

Land tax relief is another example of State differences.

In Qld, land tax relief is offered to landowners where the ability of the #tenant to pay rent is affected by Covid-19 (and their rent is reduced) and also where the landowner's ability to secure tenants has been affected by Covid-19.

Qld relief is self-assessed. (Subsequent auditing is likely.)

Qld is also extending the relief to the 2020-21 land tax liability (applications close on 26 February 2021).

(Qld Land Tax Relief Measures)

In NSW, relief is offered to landowners whose tenants can prove Covid-19 financial distress and have been provided rent reduction.

No relief is currently provided to landowners where their ability to secure tenants has been affected by Covid-19.

NSW is approval based rather than self-assessed.

Relief is currently limited to the 2020 land tax liability.

(NSW Land Tax Relief Measures)

Qld clearly has the more generous relief program at this point.

Update - 23 September 2020

NSW has now extended its Land Tax relief program until 31 December 2020.
Rental support measures in NSW to be extended for six months

September 2020

Squeezing the last cent out of a dead tenant?

January 29, 2020 Edward Dever

A recent article highlights the timing of the end of a tenancy when a tenant dies - Woman’s estate ordered to pay three weeks’ rent after her death

As a landlord, you hope that tenants don't die. But it does happen. In Qld, generally the tenancy ends two weeks after notice of the death (Qld RTA - death of a sole tenant).

I view the date of death as the end of the tenancy. I see no point requesting written notice from the deceased tenant's relatives at a time when they should be focused on other things. While formalities need to be addressed, a landlord should make things as easy as possible for the deceased's relatives.

There are ways of trimming costs from property ownership without trying to squeeze the last cent out of a dead tenant. Not every landlord would agree with that.

You can make the property ready for the next tenant in a way which makes the process as simple and helpful as possible for the deceased tenant's relatives. An agent who genuinely shows empathy in these situations is also helpful.

A simple rule of thumb is how would I like to be treated in similar circumstances.

PELEN

January 2020