Gold Coast council rejects rates hike for short-term rental properties

Gold Coast Mayor Tom Tate has ruled out hiking rates for short-term rentals despite thousands of properties sitting vacant while the city remains in the grips of a crushing housing crisis.

Mayor Tom Tate ruled out a rates hike for short-term rental properties. Picture: Glenn Hampson

Gold Coast Mayor Tom Tate has ruled out hiking rates for landlords holding properties vacant for short-term letting while the city remains in the grips of a crushing housing crisis.

Following Brisbane’s move to introduce a 50 per cent rates premium for holiday rental properties would “spook” investors and threaten the city’s tourism economy, he said.

“This is not under consideration and in fact we offer a ten per cent discount for investment properties who pay on time. As a tourism destination our economy relies on short-term rental properties and always will,” Mr Tate said.

Thousands of properties are sitting vacant while the state remains in the grip of a crushing housing crisis

Latest Australian Burean of Statistics data shows 87,000 Queensland homes are sitting empty despite thousands of residents in desperate need of rental accommodation.

Gold Coast vacancy rates slumped to a ten-year low of 0.4 per cent in the first quarter of this year, sending rents soaring.

Average weekly rent on the Gold Coast surged to $774 in June across houses and units combined, SQM Research figures show.

But Mr Tate said the onus was on State Government to provide more social housing, while council was working to, “create the right conditions” for the private sector to build more affordable housing stock.

Lord Mayor Adrian Schrinner unveiled the rates penalty in the 2022/23 Brisbane City Council Budget. Picture: Steve Pohlner

“We need property investors like never before. We have a rental crisis and it boils down to supply versus demand,” Mr Tate said.

“Investors help with supply by buying properties and committing to paying a mortgage and out-goings as well as finding tenants.

“Investors take risks and we should respect that.”

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While Mr Schrinner touted the rates hike as an initative to ease the state-wide rental crisis, Mr Tate said it could, “spook investors at a time we need them most”.

Mr Schrinner unveiled the penalty for property owers who, “turned homes into mini hotels” in his budget address.

“Renters should not be left out in the cold while the property market continues to skyrocket,” Mr Schrinner said.

“We’re going to give landlords who’ve been using websites like Airbnb and Stayz a choice between returning these properties to the long-term rental market or face significantly higher rates.

“It’s incredibly hard for tenants to find affordable places to live with six or twelve month leases,” he said.

The owners of this Pacific Pines home for sale grossed $100,000 annual income from short-term letting

The Strata Community Association Qld president Kristi Kinast said a similar penalty for Gold Coast owners would be a positive step towards alleviating the housing crisis.

“This is perhaps of even higher importance or relevance to the Gold Coast than to Brisbane, given the huge volume of short-term letting on the Gold Coast,” she said.

The peak strata body further urged state government to empower unit owners with the right to ban short-term letting within their buildings.

Ms Kinast said units across the Gold Coast which could be leased to long-term tenants were left vacant aside from during peak holiday seasons.

This not only exacerbated the city’s housing crisis, but also impacted on liveability for residents within those complexes, Ms Kinast said.

Units within this Surfers Paradise complex can be rented via online platforms or through the on-site management

Ms Kinast said laws governing body corporate associations were outdated and in urgent need of reform.

“Short-term letting is a serious problem in the housing market and for residential amenity in strata complexes,” Ms Kinast said.

“As the industry association for body corporate managers, our members hear countless stories of properties being used for parties and anti-social behaviour, with committees and residents absolutely powerless to act.”

Prosper Australia director of advocacy Karl Fitzgerald joined the call for government action to reduce incentives for short-term profiteering from housing.

“Higher land taxes, more effective vacancy taxes and even curbing interest-only loans could all help. Switching away from stamp duties and towards land taxes — the ultimate vacancy tax — is a vital step forward,” Mr Fitzgerald said.