Queensland rental crisis: Greens bill to cap rent increases and outlaw rental bidding

The state’s peak body for the real estate industry slammed the proposed legislation as “ludicrous” and claimed no lessor would choose to invest in a Queensland property if it became law.

The state’s peak body for the real estate industry has slammed a Greens bill that would see rents increase in line with inflation and ban landlords from accepting higher offers as “ludicrous”.

The proposed laws – introduced to Queensland Parliament on Wednesday – would cap rent increases to once every two years and by no more than inflation per year, including if there is a period for which the property is not rented or if current tenants move out and new tenants enter on a new lease.

The bill would scrap ‘no grounds’ evictions or evictions for sale contract by the lessor, replacing these provisions with two new grounds for a notice to leave for major renovations or occupation by the property owner or the owner’s close family.

An offence would also be created for lessors who issue a notice to leave on false grounds.

REIQ CEO Antonia Mercorella said it was critical to continue attracting property investors to Queensland to improve rental supply and keep pace with demand so as to maintain rental affordability.

“What we don’t need is ludicrous rental reform proposals like we’re seeing from the Greens,” she said.

Ms Mercorella said the proposed the abolishment of “without grounds terminations or evictions” was misleading because under Queensland law, lessors cannot evict tenants for no reason during a fixed-term tenancy agreement.

“By tying the hands of lessors behind their backs, what the Greens are really seeking is for tenants to have the right to stay in a property until it suits them, to make modifications as they please and keep pets in the property without seeking consent,” she said.

“Meanwhile, lessors won’t be able to even request tenants pay market rent.

“As a result, no lessor will choose to invest in Queensland property under these proposed laws.”

On Wednesday, Member for South Brisbane Amy MacMahon said the Palaszczuk government had “dragged their feet” on rental reforms and urgent action was needed to protect desperate renters.

Queensland Greens MPs Amy MacMahon and Michael Berkman at Parliament House. Picture: NCA NewsWire / Dan Peled

More than 70 per cent of Queensland’s rental market now has a vacancy rate of below 1 per cent, according to REIQ figures released in April.

“The Covid crisis has shown us just how fragile our tenancy system really is, thousands of people have been forced out of their homes and onto the social housing waiting list with 47,000 other people and rising,” Ms MacMahon said.

Under the bill, landlords would only be able to increase rent more than CPI if the tenant agrees, or if the lessor applies to the tribunal to demonstrate improvements that justify a rent increase.

The laws also ban landlords from accepting offers from prospective tenants that are higher than the advertised price to close a loophole on rental bidding, which is already illegal in Queensland.

“We’ve been hearing so many stories from people who are lining up with dozens of other people at rental properties and offering $50 or $100 above the rent,” Ms MacMahon said.

Regional Queensland is experiencing the most pronounced rental squeeze, with availability in Maryborough at just 0.2 per cent, followed by the Southern Downs 0.3 per cent.

The Sunshine Coast, Gympie and Rockhampton have an availability rate of 0.4 per cent.

Chenoa Finnigan said her landlord did not renew the lease on her Mount Coolum rental home and immediately advertised the property for rent at an additional $200 per week.

She said agents and landlords were taking advantage of cashed-up southerners and forcing locals to move out of the region.

Chenoa Finnigan was forced to move from the Sunshine Coast to Brisbane due to the rental crisis. Picture: Steve Pohlner

“How do you add on an extra $200 per week without anything being changed? They didn’t renovate it, or fix the issues, they changed nothing,” she said.

“Within about a week of this property being back on the market, for an extra $200 a week, it was gone.”

Unable to secure a rental on the Sunshine Coast, Ms Finnigan said she was forced to leave her community and moved to Brisbane where more rentals were available in February.

“There was no way in the world I was going to be able to get a property on the Sunshine Coast, still, on Facebook groups people are screaming out for properties,” she said.

The bill was referred to the Community Support and Services Committee.

Originally published as Queensland rental crisis: Greens bill to cap rent increases and outlaw rental bidding