Market Insights from the guy with the gavel Haesley Cush

The state government is rolling out their fifth round of reforms in four years to property management.

But again nothing that seems to address the housing in this ”housing crisis”! There are 50,000 people waiting for public housing, hundreds of applications on available properties and it’s the homelessness that’s the issue. This just sounds like more noise to distract and more finger pointing out the window rather than in the mirror.

A considered response from the REIQ, lead by CEO Antonia Mercorella, outlines clearly the response from the industry and private sector. These are the people who are housing the majority of tenants and these landlords are being culled by the death of 1000 cuts. The REIQ has a platform for members feedback at advocacy@reiq.com.au.

The finger pointing in these reforms I’m referring to is on rental bidding, capping bonds and tying rent increases to the property rather than the Tenancy. Bonds are already capped below $700per week at four weeks rent (which is the area of concern) and bidding wars are already restricted. But higher offers are happening because desperate tenants are offering above the asking rent to stand out. 

Finally, this reform prevents a rent increase in a 12 month period for a property? This means that even with a new tenant or if the property sells to a new investor or you’ve renovated you can’t increase your rent! These constant changes just dent investors confidence and will make it even harder for tenants if owners continue to sell to flee the red tape.

Haesley Cush I This article is from the April 21st issue of The Courier Mail Digital Edition. To subscribe, visit https://www.couriermail.com.au/