Published Monday, 23 April, 2007 at 03:53 PM
JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Minister for Public Works, Housing and Information and Communication Technology
The Honourable Robert Schwarten
REVAMP OF RESIDENTIAL TENANCIES ACT TO SUIT CHANGING TIMES
The State Government is looking to revamp Queensland tenancy laws to better protect tenants and make renters as responsible for water use as private owners.
Premier Peter Beattie said State Cabinet today endorsed a discussion paper suggesting important changes to the Residential Tenancies Act that would affect tenants, landlords and agents.
Mr Beattie said the discussion paper was prepared by the Residential Tenancies Authority at the Government’s request.
“We will now undertake extensive public consultation to ensure any amendments to the legislation reflects community opinion,” Mr Beattie said.
“We are living in difficult times for the private rental market, and our regulation of that market must reflect the challenges we face. The biggest challenge for all of us is water conservation.
“We are all aware that everyone needs to reduce their water use, including tenants.
“The paper proposes to let landlords pass on the charges for water consumption to encourage tenant water saving, but only in certain circumstances. It will only be permitted if an individual water meter has been attached to the property, and the landlord has installed water wise devices.
“Landlords would not be able to charge for water unless they have been installed in all parts of the property.
“As well, fixing water leaks would be classified as an emergency repair, and must be done within 24 hours.”
Mr Beattie said the government was also proposing to tighten the rights of tenants surrounding the selling of properties.
“The paper proposes that prospective purchasers must be supervised and that agents will be prohibited from displaying photographs of rental premises that show tenants’ belongings, unless the tenant consents. The tenant must also consent to open houses and on-site auctions.
“At the moment the act states inspections need to be done at a ‘reasonable time’. We want to define that as being between 8am and 6pm Monday to Saturday and not on Sundays or public holidays, unless the tenant agrees.
“Also if a tenant moves into a property and it is offered for sale in the first two months of the tenancy and the tenant had not been informed about the sale, we think it is only fair that tenants should be able to terminate that lease.”
Housing Minister Robert Schwarten said that he wanted to hear the ideas of the community about how the rental market regulation could be improved before any final decisions were made.
“Everybody knows that the private rental market has dramatically changed over the last few years. I have been saying for a long time that we have crisis of supply of affordable housing in the private market due to the lack of housing policy from the Federal Government.
“The fact is John Howard’s private rental market is under enormous stress and in some cases in crisis with rents in Queensland going up about $85 in five years with rent assistance only going up $15.
“There is no doubt that rent in the private rental market is a huge issue across Queensland. In my own electorate the rent for one individual increased from $160 to $240 in six months, while his rent assistance would have risen by about $5!
“Clearly the Federal Governments housing policy needs reform and I have been waiting nine years for that to happen, but I am not holding up much hope until we see a change in Federal Government.
“Now we see escalating rents and rent bidding. I don’t want to see people being exploited in this booming market.
“That is why I want to see an end to rent bidding. I have discussed this with the REIQ and my preferred option is that agents regulate themselves. The role of agents is to set a price for rental properties, not pit tenants against each other.
“The paper recommends that tenants should be able to appeal excessive rent rises which are imposed on them when a lease runs out and a new lease is commenced in the same property. There has to be some way of making sure such rises are fair and I want to hear peoples’ ideas about that.
“It is perfectly reasonable for landlords to expect a reasonable return on their investment, because unless that happens there will be no private rental market.
“Like all discussion papers, the aim is to provoke public comment and public response and people should not confine themselves to the issues raised in this paper. The Government is standing ready to listen to all stakeholders, landlords, tenants and agents,” Mr Schwarten said.
The discussion paper will be available to download from the RTA website at review@rta.qld.gov.au or by calling 1300 366 311. Feedback and further proposed changes can also be submitted through the website. The feedback period closes on 22 June this year.
Media Contacts: Premiers office 3224 4500
Office of Minister Schwarten – David Shankey 0407582041
Information Sheet
Residential tenancies in Queensland
• Australian Bureau of Statistics figures (2003-04 Housing Occupancy and Costs Survey) show 483,500, or about 32 per cent of Queensland households rent.
• Eighty-one per cent are renting from private lessors, 13.6 per cent from social housing providers and the rest are renting from other lessors.
• The Residential Tenancies Authority (RTA) held 370,921 bonds lodged under the Act in December 2006.
• The distribution of rental dwellings across the State is in line with population distribution, with the bulk (66 per cent) located in the south east of the State and most (87.6 per cent) are managed by licensed real estate agents, according to RTA bond data.
• The average length of tenancy is 11.5 months.
• Vacancy rates for Queensland for the December 2006 quarter were 2.6 per cent according to the Office of Economic and Statistical Research compared to the generally accepted balanced level of 3 per cent.
• Vacancy rates were tighter in some areas of Brisbane and in regional areas where mining and other economic activity has boosted demand.
• Over the last five years, rents have increased significantly.
• According to the Real Estate Institute of Australia, Brisbane had the third highest median rent for both dwelling types of all Australian capital cities.
Premier Peter Beattie said State Cabinet today endorsed a discussion paper suggesting important changes to the Residential Tenancies Act that would affect tenants, landlords and agents.
Mr Beattie said the discussion paper was prepared by the Residential Tenancies Authority at the Government’s request.
“We will now undertake extensive public consultation to ensure any amendments to the legislation reflects community opinion,” Mr Beattie said.
“We are living in difficult times for the private rental market, and our regulation of that market must reflect the challenges we face. The biggest challenge for all of us is water conservation.
“We are all aware that everyone needs to reduce their water use, including tenants.
“The paper proposes to let landlords pass on the charges for water consumption to encourage tenant water saving, but only in certain circumstances. It will only be permitted if an individual water meter has been attached to the property, and the landlord has installed water wise devices.
“Landlords would not be able to charge for water unless they have been installed in all parts of the property.
“As well, fixing water leaks would be classified as an emergency repair, and must be done within 24 hours.”
Mr Beattie said the government was also proposing to tighten the rights of tenants surrounding the selling of properties.
“The paper proposes that prospective purchasers must be supervised and that agents will be prohibited from displaying photographs of rental premises that show tenants’ belongings, unless the tenant consents. The tenant must also consent to open houses and on-site auctions.
“At the moment the act states inspections need to be done at a ‘reasonable time’. We want to define that as being between 8am and 6pm Monday to Saturday and not on Sundays or public holidays, unless the tenant agrees.
“Also if a tenant moves into a property and it is offered for sale in the first two months of the tenancy and the tenant had not been informed about the sale, we think it is only fair that tenants should be able to terminate that lease.”
Housing Minister Robert Schwarten said that he wanted to hear the ideas of the community about how the rental market regulation could be improved before any final decisions were made.
“Everybody knows that the private rental market has dramatically changed over the last few years. I have been saying for a long time that we have crisis of supply of affordable housing in the private market due to the lack of housing policy from the Federal Government.
“The fact is John Howard’s private rental market is under enormous stress and in some cases in crisis with rents in Queensland going up about $85 in five years with rent assistance only going up $15.
“There is no doubt that rent in the private rental market is a huge issue across Queensland. In my own electorate the rent for one individual increased from $160 to $240 in six months, while his rent assistance would have risen by about $5!
“Clearly the Federal Governments housing policy needs reform and I have been waiting nine years for that to happen, but I am not holding up much hope until we see a change in Federal Government.
“Now we see escalating rents and rent bidding. I don’t want to see people being exploited in this booming market.
“That is why I want to see an end to rent bidding. I have discussed this with the REIQ and my preferred option is that agents regulate themselves. The role of agents is to set a price for rental properties, not pit tenants against each other.
“The paper recommends that tenants should be able to appeal excessive rent rises which are imposed on them when a lease runs out and a new lease is commenced in the same property. There has to be some way of making sure such rises are fair and I want to hear peoples’ ideas about that.
“It is perfectly reasonable for landlords to expect a reasonable return on their investment, because unless that happens there will be no private rental market.
“Like all discussion papers, the aim is to provoke public comment and public response and people should not confine themselves to the issues raised in this paper. The Government is standing ready to listen to all stakeholders, landlords, tenants and agents,” Mr Schwarten said.
The discussion paper will be available to download from the RTA website at review@rta.qld.gov.au or by calling 1300 366 311. Feedback and further proposed changes can also be submitted through the website. The feedback period closes on 22 June this year.
Media Contacts: Premiers office 3224 4500
Office of Minister Schwarten – David Shankey 0407582041
Information Sheet
Residential tenancies in Queensland
• Australian Bureau of Statistics figures (2003-04 Housing Occupancy and Costs Survey) show 483,500, or about 32 per cent of Queensland households rent.
• Eighty-one per cent are renting from private lessors, 13.6 per cent from social housing providers and the rest are renting from other lessors.
• The Residential Tenancies Authority (RTA) held 370,921 bonds lodged under the Act in December 2006.
• The distribution of rental dwellings across the State is in line with population distribution, with the bulk (66 per cent) located in the south east of the State and most (87.6 per cent) are managed by licensed real estate agents, according to RTA bond data.
• The average length of tenancy is 11.5 months.
• Vacancy rates for Queensland for the December 2006 quarter were 2.6 per cent according to the Office of Economic and Statistical Research compared to the generally accepted balanced level of 3 per cent.
• Vacancy rates were tighter in some areas of Brisbane and in regional areas where mining and other economic activity has boosted demand.
• Over the last five years, rents have increased significantly.
• According to the Real Estate Institute of Australia, Brisbane had the third highest median rent for both dwelling types of all Australian capital cities.