Ann Wason Moore says Burleigh Waters could be key to Queensland’s housing crisis

Accommodation industry boss’s stark warning as housing and rental reforms reward tenants and developers, but mum and dad property investors locked out

Gold Coast is Australia’s largest short-term rental market

It’s just a quiet suburban street in Burleigh Waters … but it could hold the key to Queensland’s housing crisis.

Or at least start to solve the problem.

Every day as Trevor Rawnsley, the CEO of Australian Resident Accommodation Managers Association (ARAMA), opens his own front door, he’s greeted by the growing ‘cancer’ of short-term rentals overtaking his neighbourhood.

Where once it was filled with families and owner-occupiers, now almost one of every six homes is listed on Airbnb or similar.

But Trevor blames neither the owners nor the platforms, instead he says it’s a symptom of a system in which private investors have been pushed out of the long-term rental market.

Trevor Rawnsley, CEO ARAMA (Australian Resident Accommodation Managers Association), on his own street in Burleigh that’s being taken over by AirBnB short-term rentals. Picture Glenn Hampson

While the Queensland Government was widely lauded this week for a Budget that invests in social housing, homelessness supports, emergency accommodation and build-to-rent schemes, it was absent a crucial factor – boosting supply in the missing middle.

Trevor says rather than continuing the false narrative of ‘greedy landlords’, the state should incentivise private investors, primarily mums and dads, who are Queensland’s largest housing providers.

He says focusing on this simple factor could convince those owners on his own Burleigh Waters street, along with thousands of other short-term rental operators across the Gold Coast, to turn back to long-term tenancies, while simultaneously reducing rental costs.

“Tenants are protected with a freeze on rental increases, big developers are rewarded with subsidies for investing in build-to-rent schemes, but what about private investors? They’re getting nothing but trouble,” says Trevor, who met with both Premier Annastacia Palaszczuk and Treasurer Cameron Dick this week.

“Why not offer them an incentive to stay in the long-term rental market? Cut their rates, give them tax break, offer them subsidies. These are not big corporations, these are mum and dad landlords who are experiencing the cost of living crisis like everyone else. They are regular taxpayers, they should be rewarded for being housing suppliers, not punished for being landlords.

Trevor Rawnsley, CEO ARAMA (Australian Resident Accommodation Managers Association)says while the govt’s decision to freeze rent rises comes from the right place, it’s further destroying housing supply as landlords just turn to AirBnb’s just like in his street. Picture Glenn Hampson

“If we could incentivise them to stay in the long-term rental market, if we could make it cost-effective, they would be able to offer lower rents or to afford survival during the rental freeze. We could make it win-win for both sides.

“I understand the state’s idea behind freezing rental increases, but private investors need a return – they’re not there to provide social housing, that’s the government’s job.

“All it does is turn landlords off the long-term rental market, it’s much easier and more lucrative to turn to short-term holiday rentals.

“Unfortunately, there was nothing in the budget for them, only more disincentives – especially from July 1, so I’m sure it won’t be long until I see more houses on my own street go the way of Airbnb.

“It’s like a cancer growing in the suburbs.”

Just this week, Byron Shire Council announced it was pushing ahead with plans for a 60-day annual cap on short-term holiday letting, in an effort to boost permanent rental properties and ease housing pressure.

Earlier this year, ARAMA called on the government to introduce a ban on all stand-alone homes from the holiday and short term rental market, but Trevor says there is plenty that can be done even without a ban.

He says while the City of Gold Coast does have stringent rules on where short-term rentals can operate, the reality was that a lack of enforcement meant the market was only growing.

While there has been debate as to just how much the short-stay market really affects the rental vacancy rate on the Gold Coast, the figures don’t lie.

According to Airbnb, the number of short-term rental listings on the Gold Coast increased by 67 per cent year on year, and hosts earned over a million dollars per week by putting their properties on the platform.

While, Australian Airbnb management company and partner MadeComfy states that the Gold Coast is Australia’s largest short-term rental market after Sydney and has seen more than 100,000 nights booked each month since August 2022.

Gold Coast is Australia’s largest short-term rental market

That’s a huge supply of long-term rentals that the Coast is missing.

But Trevor says that means there is huge opportunity.

And when it comes to the effectiveness of council crackdowns combined with incentives for long-term landlords, he says there is a perfect case study in Noosa Shire.

“Noosa really concentrated on short-term rentals in houses and areas where families and workers live, they made sure that everyone knew that if they didn’t report being a short-term rental there would be consequences.

“They then reached out to those who had reported and asked them to convert to long-term rentals, explaining that it would reduce their rates and they wouldn’t have to go through a Material Change of Use. That was hard work by the council but it ended up with 65 houses brought back to the long-term rental pool.

“That’s not going to solve the housing crisis but if you apply that time and energy across the state, we could add thousands of homes.

“If there were even more incentives for owners and landlords, and more consequences enforced for short-term rentals, we could really make a difference. Unfortunately, while Noosa is offering the carrot, the state is using the stick.

“I know the Queensland Government is not meaning to, but that is the reality. I’m also not meaning to bash their efforts or to have a whinge, but it’s important to look at all of the repercussions of these rental reforms.”

In fact, Trevor says while he supports the state government’s new tenancy law that allows victims of domestic violence to break their lease without penalty, it was unjust that landlords ultimately had to pay the price.

Under existing legislation, tenants who have a domestic violence report from a relevant authority can break their lease giving only seven days’ notice and walk away without paying for any DV-related repairs.

Trevor Rawnsley, CEO ARAMA (Australian Resident Accommodation Managers Association). Picture Glenn Hampson

Landlords are also required to take reasonable steps to protect tenants who are experiencing or at risk of experiencing domestic violence, including providing safe and secure accommodation and changing locks.

Landlords who fail to comply with the new requirements can face hefty fines, with penalties of up to $10,000 for individuals.

“I absolutely support any measures that will keep people safe from family violence. Those people, the vast majority are women, need support and should not have to pay the price.

“However, the fact is that the landlord has not committed any crime, yet they end up out of pocket.

“Landlords are not there to create social housing, but because we don’t have enough social housing, it’s the private investor who is under pressure.”

Trevor says expanding the rental reforms to include incentives for landlords would help both sides.

He says while he does not believe that the suburbs are the appropriate home for short-term rentals, they still have a place in our city.

“Airbnb and the like are a cancer on the suburbs, but in apartment buildings they can be benign,” he says.

“A two-bedroom unit in Surfers is not usually where a family of four want to live, but it’s perfect for someone who is on a holiday.

Trevor Rawnsley, CEO ARAMA (Australian Resident Accommodation Managers Association). Picture Glenn Hampson

“There can still be problems though, particularly when you have someone managing it themselves but living interstate or overseas, because when there is a problem, it’s the neighbours who suffer.

“But it’s infinitely more workable than the homes on my street that are part of the short-term market.

“Burleigh may sound like a holiday hotspot, but these are not mansions on the water … it’s just a quiet street in the suburbs. The holiday-makers are quite probably a bit disappointed, there is no public transportation, it’s a long walk to the beach … but it’s perfect for families who want to settle down.

“The most incredible thing is that they’re empty most of the year. Yet the owners know that it still makes more sense and cents to stick with short-term than go through the hassle and penalties placed on long-term landlords.

“If we don’t change that asap, this crisis is only going to get worse.”

Originally published as Ann Wason Moore says Burleigh Waters could be key to Queensland’s housing crisis