The editor: Brisbane Mayor right to slug short-term rental owners with huge rate hike

Brisbane Lord Mayor Adrian Schrinner’s plan to impose higher rates on landlords who rent their properties as short-stay accommodation is an excellent example of a political leader acting on the cost-of-living crisism writes the editor.

Brisbane Lord Mayor Adrian Schrinner’s plan to impose higher rates on landlords who rent their properties as short-stay accommodation is an excellent example of a political leader acting on the cost-of-living crisis.

With the cost of renting in Brisbane up 20 per cent in the past year – the biggest rise in the nation – there is no doubt there are many households really struggling.

Add to that the recent record rise in property prices and it is clear our capital city – and really the state’s entire South East – is now in the grips of a genuine housing crisis.

That this comes amid a backdrop of increases across the board in prices generally and it really is a perfect cost of living storm. And as we said yesterday in this column, it is therefore critical for governments at all levels to be doing what they can to ease the pressure.

Lord Mayor Adrian Schrinner plans to increase council rates by 50 per cent from July 1 on residential properties listed on sites, such as Airbnb, Booking.com and Stayz. Photo Steve Pohlner

That does not mean handouts. Australians have had more than their fair share of them in recent times. Instead it means our political leaders must be looking for practical ways to help.

And as we say, Mr Schrinner has done well on that measure with his plan to increase council rates by 50 per cent from July 1 on residential properties listed on sites, such as Airbnb, Booking.com and Stayz. The exclusion in place for any rented out for less than 60 days a year, and those with just a bedroom for rent means those who rent out their properties while on an extended holiday will not be punished. This is therefore a commonsense measure that is easy to support.

Hopefully, this measure will act as a small but practical incentive for more than a few landlords to return their properties to the long-term rental pool. That is necessary in the short-term to ease the pressure.

But this should also be an issue the state government is tackling head-on too, as that is the level of government responsible for the regulation of short-term rentals.

Optimistically, we hope Treasurer Cameron Dick has some plans to unveil in his state budget next week. Realistically, we will not be holding our breath.

Mr Schrinner’s longer-term plan to transform sections of what are now industrial-focused suburbs into new residential precincts is also something we welcome. There is nothing to suggest the demand in Brisbane’s property market will ease over the next decade, with the 2032 Olympics being held here sure to be a key long-term driver.

And so while Mr Schrinner’s so-called Suburban Renewal Precinct Initiative is very much in draft form – with little detail yet announced – it is a good concept.

Mr Schrinner says the plan was inspired by the transformation of inner suburbs such as Newstead and Teneriffe, where industrial sites have been replaced by high-density apartments and new precincts.

Again, this is a good idea, but will not solve the problem in the short-term. And it is a problem. Yesterday the chief executive of the Real Estate Institute of Queensland Antonia Mercorella advised those seeking a tenancy in what is the tightest market in decades to “perhaps consider a co-tenancy agreement” – that is, to be willing to share your rental property with someone else. Yep, things really are that tight – a fact illustrated by one frustrated Brisbane renter who has had no luck securing a property – despite a high income, perfect rental history, and offering above the asking price – posting on Reddit this week: “Landlords of Brisbane, what the f--k are you looking for?”