According to the Real Estate Buyers Agents Association (REBAA), rent reform in Queensland and Victoria could cause rental disputes to escalate, which could potentially hurt the market.
Potential changes as part of the proposed rent reforms could make the market more difficult for tenants and landlords to navigate due to "shades of gray," which are subject to interpretation, said REBAA President. , Cate Bakos.
For example, references to reforms to "prescribed minor modifications", "major repairs and renovations" and "reasonable pets" were too subjective and loose – Bakos said that what can be considered reasonable for a person can be alarming. another.
"For example, an asthmatic owner who does not want pets on a property he might choose to live in one day could have difficulty with this law. Similarly, a installation in the home may be considered appropriate for the tenant but may cause irreparable damage to the owner, "she said.
Bakos also criticized the proposed termination of the 120 day notice without reason to leave Victoria.
"Although we recognize that tenants deserve stable housing and a fair deal, we question the merits of an agreement that leaves one party in a position to which it is related while the ; another party has more discretion, "she said.
While some of the proposed changes were aimed at strengthening the security and protection of tenants and property managers, Bakos said that there was a need to clarify the situation to avoid the escalation of rental disputes.
"The danger is that the rules are too subjective, leaving uncertainty for tenants and owners when the only clear parameters have to be determined by an independent third party during a court hearing," he said. she declared.
"Reckless" reforms
The Queensland Real Estate Institute (REIQ) said that the proposed changes in the state could potentially open a box of worms, discouraging investors from the local market.
Changes to the Queensland Rental Law include the removal of the landlord's right not to renew a rental agreement at the end of the term of the agreement.
"If passed, the law will erode homeowners' basic rights and discourage real estate investment across the state. Previous report Your investment property.
Simon Pressley, head of research in Propertyology, shared the same sentiment, saying that the reforms could trigger a mass exodus of investors.
"With many existing owners of Queensland investment property already disappointed with the poor financial performance of their assets, this new legislation will be the last straw for some owners," he said. he declares.
Pressley said it could cause housing supply to drop, which in turn would cause prices to rise.
"When a state imposes conditions that create a more difficult environment for investors, it is easy for them to remove that state from their selection criteria," he said.
While market experts and observers in Victoria welcomed the reforms in Victoria, they said that more needed to be done to ensure vulnerable tenants had easy access to their homes and that they not be billed for excessive electricity bills.
"There are obvious opportunities to further strengthen these regulations to improve security, stability and confidentiality," said Jennifer Beveridge, general manager of Tenants Victoria, in a field report.
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