Suzana Wade of Locate Property is a local Brisbane property management expert who is on the ground in Brisbane, speaking to tenants every day. Her insight is invaluable when actually trying to ascertain investor sentiment and tenant feedback for Brisbane Properties, and right now is a bad time to be a tenant.
Property rents are increasing, and vacancy rates are at an all-time low. However, this should be an excellent time to be a property investor. However, why hasn’t this translated to more investors buying right now?
Tenant demand is robust, rental prices are rising, properties are in little danger of sitting empty, rental returns are strong, and it’s starting to shift to be a buyer’s market in many locations thanks to recent declines in purchasing prices.
However, investors have been noticeably absent from the festivities. According to Australian Bureau of Statistics data, the value of investor lending for homes in February was down 32.6% year over year. Overall, house lending was down 30.9%.
It’s crucial to emphasise that a lack of investors isn’t the only reason for our housing crisis; governments and a lack of development are also to blame (the number of dwelling approvals in February 2023 was down 31.1% from the previous year).
However, investor participation helps to alleviate the crisis.
The main obstacle, according to PropTrack economist Angus Moore, has been interest rates, which have crushed investors due to limited borrowing capacity and higher mortgage rates.
repayments just like everyone else. The Palaszczuk government’s new tenant legislation is a close second in terms of the reasons keeping investors out of the Brisbane property market.
Although prices have retracted by on average 5–10% over the last 18 or so months, investing in Brisbane Properties is unquestionably more expensive thanks to interest rates and hidden investment costs. “During the pandemic, we actually noticed more investors selling than buying,” Suzana said.
“Many people saw their overall wealth decline as a result of falling home prices.” “Also, given the low number of property listings and limited new homes to buy, there hasn’t been a large selection of investment property options for investors to purchase with an attractive price discount incentive.”
Investors for Brisbane properties have the opportunity to profit.
Experts believe the moment is now, with capital city vacancy rates still falling and rental prices rising as housing supply is limited and population growth is high.
According to PropTrack statistics, a vacancy rate of 3% is considered desirable as a market equilibrium between tenants and owners; however, capital cities recorded a rate of only 1.43% in March 2023, down 55% from March 2020 and 0.66% from March 2022.
Sydney and Melbourne experienced the most significant quarterly declines, while Brisbane, Perth, Adelaide, Hobart, the ACT, and the regions experienced modest rises.
According to the ABS, 303,700 people are predicted to move to our shores in the year ending June 30, 2022; a larger proportion of them than the average population is likely to seek rental accommodation.
Meanwhile, advertised rental prices on realestate.com.au rose 2% nationally in the first quarter of 2023 to a median of $500 per week, representing an 11.1% increase over the previous year and the fastest rate of rent growth since well before the pandemic.
“Given how tight rental markets are and how competitive they are, we’re seeing rents grow extremely quickly across the country.”
“The only long-term solution is more housing.” “And more investors are purchasing such homes.”
Investor demand is expected to rise.
According to Warren Hogan, an economic advisor with Judo Bank, the present rental problem would certainly encourage additional investors to enter the market.
“We know there will be a supply squeeze and that the population numbers are there.” Rents will continue to climb, as will rental yields; prices will not fall much further and will most likely begin to rise.
“This is an excellent time to enter the market for a long-term investment.”
Some investors appear to be in agreement.
Despite borrowing less, their share of all borrower-accepted loans is increasing.
According to the ABS, investors accounted for 33.7% of all transactions in February 2023, up from 24.2% in February 2021 and 27.3% in February 2020.
Locate Property’s Suzana Wade predicts that renting in Brisbane is about to get even harder with record rent increases over the next 12 months. According to recent PropTrack statistics, tenants across the nation have another challenging year ahead of them as rental costs rise. According to the data, rentals across the country have increased by 2 percent in the first quarter, to a median of $500 per week.
In the past year alone, rents have increased by 11%, which is the biggest annual increase seen since before the epidemic. Rents in the nation’s capital increased by 4% from the last quarter of 2022 to the March quarter, bringing the yearly increase to an astounding 13%. Meanwhile, rents in the region have climbed by 2.2% from the fourth quarter of 2017 to the first quarter of 2018 (an annual increase of 4.5%).
Particularly in Brisbane but also in Sydney, Adelaide, and Perth, rents are rising “at an extremely rapid pace,” as the paper emphasises. In fact, Perth rents increased by 9 percent in the most recent quarter. PropTrack’s analysts are sounding the alarm that rent increases are likely to persist due to the current tight rental market. Particularly true in nation’s capital, where rent hikes have remained steady since they first began to accelerate in early 2022. As the pandemic has progressed, rent rises have slowed in the regions.
Except for the Australian Capital Territory and remote South Australia, rental prices rose across the country in the March quarter. The Reserve Bank of Australia (RBA) has lately paused its long-running cycle of interest rate hikes, opting to maintain a cash rate of 3.6 percent instead of raising it. However, rising rental costs show little signs of slowing down. Therefore, renters everywhere will be hit even harder than usual this year.
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As a Property manager in Brisbane, I can attest to the difficulty of the current rental situation for tenants. Finding and securing a rental property is difficult because demand is at an all-time high. Tenants can improve their chances of finding their ideal rental property by taking certain actions, however. In light of the current rent crisis, here are the top five things that tenants should do:
Tenants should be well-organized and ready, as there is a lot of competition for rental properties. This includes having references, income documentation, and identification ready and available. Tenants who are well-prepared will be in a better position to act swiftly once they locate a suitable rental property, which is especially important in the current market. Have all of this information ready to submit upfront so that the agency in question doesn’t need to spend days running around for you.
Flexibility in property type and location is especially important in the current rental market. While tenants may have their hearts set on a specific neighbourhood or style of rental property, they may fare better by being flexible and open to exploring other options. Tenants can gain additional insight into their options by working with a Property Management Brisbane team.
The rental market is competitive, so it’s important to take the initiative in finding a place to live. This entails persistently monitoring online listings, making use of open houses, and signing up for property alerts. Tenants who turn up early, make themselves known to the agency as a great potential tenant that carries the right attitude will stand out from the crowd.
Be Truthful- Tenants should provide accurate information about their rental application, including their income and employment status. Property managers Brisbane will throughout check the information provided so if you have any challenges with your supporting documents, ask to speak to the property manager Brisbane and see if there is a solution that you can offer the agency.
You’re approved. This is not the end of the process but rather the start. You can be sure that the agency will support your subsequent application by developing a strong relationship with your property manager in Brisbane. Ensure that your rent is paid on time and get the rent transfer dates set correctly. Be a joy to work with. The reference that this agency offers for the next time you want to move into the property is the number one thing that the agency will look to when deciding your conduct as a tenant.
Tenants in Brisbane need to be proactive, flexible, honest, communicative, and prepared in order to secure their ideal rental property in light of the city’s current rent crisis. Finding a good rental property in the current market can be difficult, but working with a property manager in Brisbane like Locate Property can help you throughout this journey. Make yourself known; come in and introduce yourself anytime. For other tips, the REIQ can be a great resource.
According to Suzana Wade of Locate Property, a reputable property management company with firsthand knowledge of the situation, renters are taking “extreme measures” in response to the low vacancy rates.
Suzana Wade a well-known Brisbane real estate expert, has noticed that low vacancy rates are putting pressure on the rental market and making things unfair for renters.
A top real estate expert says that “historically” has recently published at the REIQ means low vacancy rates in Queensland are making it hard for renters to find a place to live because the demand is higher than the supply.
According to Ms. Wade, renters are competing for fewer available properties as a result of the competition.
In a tight rental market, real estate agents or property managers may suggest paying more than the asking rent to get a place to live.
The choice, according to Ms. Wade, was made as a result of Queensland’s “critically low level” vacancy rates, which made things challenging for tenants.
“Although interstate migration has reached very high levels, supply is the real underlying issue here.
Unfortunately, there is a significant mismatch between the amount of rental housing that is available and the demand for it. This problem won’t be solved soon.
Due to a phenomenon called “rental bidding,” potential tenants may haggle back and forth like they’re bidding at an auction.
It often means that the landlord gets a weekly rent payment that is much higher than the price they asked for the house.
Even though it’s against the law in Queensland and most of the other Australian states, Ms. Wade says tenants can still make higher offers as part of their own strategy. Unsolicited offers from tenants trying to secure the property really have become the norm for the more competitive properties.
She said that landlords and property managers can’t ask for more rent, even though tenants are making bigger offers.
Not only are candidates providing more money towards their rent, but they are also providing more money towards their rent upfront or seeking additional methods to stand out.
Of course, that’s just how people are.
When we are desperate to find safety for ourselves and our families, we will look for ways to stand out from the crowd said Suzana.
Unfortunately, this is one of the challenges that we property managers often face and need to address in the day-to-day activities of our role. This article will discuss domestic violence in rental properties and the role that we property managers play in relation to domestic or familial abuse cases under the Residential Tenancies and Rooming Accommodation Act 2008 (Queensland).
The RTRAA was updated on October 20, 2021, to offer better safety protections for tenants and residents who are victims of domestic and familial violence, including the option to leave the rental property right away or, if they so choose, to stay there safely.
Whether or not they are named on the lease agreement, anyone who suffers from domestic or family abuse in a rental property is entitled to the same protections under the RTRAA.
These provisions-related disputes are arbitrated by the Queensland Civil and Administrative Tribunal (QCAT).
WHAT IS DOMESTIC AND FAMILY VIOLENCE?
Domestic and family violence occurs when one person behaves in a way that the other feels threatened for their safety, well-being, or that of another person. This behavior can take the form of coercion, threats, economic abuse, physical, sexual, emotional, verbal, emotional, or psychological abuse, or it can take any other form that is controlling or domineering.
 The term “domestic and family violence” refers to a variety of behaviors, such as threatening or actually inflicting bodily harm on another person, coercing someone into having sex, robbing them of their property, depriving them of their freedom, or threatening to do any of these things to them, their children, or others. Even threatening to hurt or kill oneself is a form of self-harm.
 If you are a victim of domestic or familial abuse, you have the right to end your lease or roommate agreement with at least seven days’ notice using the appropriate form, and you can do it right away:
If a tenant, the property manager, or lessor shall be served with a Notice of Termination of Tenancy (Domestic and Family Violence) (Form 20) I;
If an occupant is, a notification ending residence interest (domestic and family abuse) (Form R20) must be given to the rooming housing provider.
As proof of domestic or family violence, the following can be used, but they must be submitted with the right form:
An RTA Form Domestic and Family Violence Report that has been completed and signed by an authorized professional who has been designated, such as a doctor, social worker, or lawyer, or a protection order or temporary protection order; a police protection notice; an interstate order; or an injunction for personal protection under the Family Law Act 1975 (Cth).
During this process, property managers and lessors are required to respect an individual’s privacy. This includes keeping any paperwork or evidence private and refraining from disclosing any information to third parties unless specifically authorized (such as to obtain legal counsel or as required by law).
A fine of up to 100 penalty units, or at the moment $14,375, may be imposed on property managers who breach their duty of confidentiality in relation to a victim of domestic and family abuse.
The property manager/lessor is required to confirm in writing, within seven days of receiving a Notice that a tenant intends to vacate a rental home due to domestic and family violence, whether:
If the landlord wants QCAT to throw out the Notice, the property manager or lessor must tell the tenant who is leaving: the date on which the tenant’s interest in the tenancy or residence ends, as long as the tenant has actually left by that date; if the tenancy or rooming accommodation agreement continues for any remaining tenants or occupants; and, if necessary, the date on which the remaining tenants or occupants must leave.
LOSS OF INTEREST
No further action is required if the tenant vacating is the only one residing there. In order to protect their right to privacy as a victim of domestic and family violence, the departing tenant is not required to provide their forwarding address to their property manager or lessor. Property managers/lessors are required to give tenants (or occupants) a Continuing Interest Notice no earlier than seven days and no later than fourteen days after the vacating party’s interest in the rental property expires. The following information must be included in the Continuing Interest Notice: the ending of the vacating person’s interest in the rental property (without disclosing why); the continuation of the tenancy or rooming accommodation agreement on the same terms; and, if necessary, the specifics of a top-up to the rental bond.
It is crucial that property managers and lessors remember throughout this process that they must not disclose that the vacating person has been experiencing domestic and family violence or any other details that may allude to that fact.
APPLICATION TO QCAT
Property managers and lessors should be aware that they can only dispute whether a Notice and the supporting evidence of domestic and family violence met the requirements of the RTRAA by applying to QCAT. For instance, if someone hasn’t offered any proof of domestic or family violence.
The following things won’t be looked into by QCAT: the individual’s history of domestic and family violence; the property manager’s/lessor’s assessment of whether the individual could safely remain at the rental property.
If QCAT does not throw out the Notice, the property manager/lessor will be responsible for fulfilling the obligations for ending that person’s interest in the rental property as described above.
If QCAT rejects the notice, it will no longer be valid, and the terms of the tenancy or rooming agreement will remain the same.
Property managers should follow the standard abandonment procedures if the person is a tenant but still vacates the rental property because that could be considered an abandoned tenancy.
REMAINING IN THE RENTAL PROPERTY
If the victim of domestic and family violence decides to stay at the rental property, they are allowed to change the locks without the property manager’s or lessor’s consent as long as they comply with all applicable body code requirements, use a licensed locksmith, and provide the manager/lessor with a copy of the key or access code (unless they agree it is not necessary or the QCAT orders that the keys not be provided).
Alternatively, the landlord or property manager must act quickly on a request to change the locks made by a victim of domestic or family violence. There are penalties for sharing new keys and access codes without permission or a valid reason, and they must never be done so.
If a tenant or co-tenant does something that is considered domestic or family violence, that person can ask QCAT to recognize them as the tenant or co-tenant instead. The property manager or lessor can attend and be heard at the hearing.
Property managers or lessors must strictly adhere to the RTRAA’s privacy and timeframe requirements in cases where a tenant or occupant is a victim of domestic or family violence.
Given the consequences for failing to fulfill their obligations, it would be best for property management companies and individual property managers to adhere to the Residential Tenancies Authority’s recommended policies and procedures for handling domestic and family violence.
To reduce the risk of RTRAA violations, principals should make sure that property management staff members receive induction and ongoing training.
Property managers are urged to seek legal counsel and as soon as they learn that a tenant or occupant is a victim of domestic or family violence. This will help them manage a very sensitive but important situation and ensure that they are fulfilling their obligations to both the tenant or occupant and their lessor client.
 Domestic and Family Violence Protection Act 2012 (Qld) s. 8(1).
 Domestic and Family Violence Protection Act 2012 (Qld) s. 8(2).
Over the past few months, the Australian real estate market has been on an up-and-down roller coaster, with conflicting signals coming from both property listings and vacancy rates. Even though the vacancy rate went down in February, the number of homes for rent went up by 7.2%, making the rental crisis worse. Both of these trends make the Australian real estate market look complicated and may have big effects on both buyers and renters.
Realestate.com.au’s most recent data show that in February, there were 7.2% more property listings in Australia as a whole. This is a big change from the month before, when the number of listings went down by 4.4%. The recent rise in interest rates has put a lot of stress on homeowners, which has led to a rise in the number of property listings.
Despite an increase in property listings, the rental market faced a different situation. February saw a sharp decline in vacancy rates, making it even more challenging for renters to find affordable housing. SQM Research says that the national vacancy rate for rentals dropped from 2.2% in January to 1.9% in February. The rental crisis in Australia is getting worse, and this represents the lowest vacancy rate since 2011.
The main causes of the rental crisis that has been getting worse for a while are a lack of affordable housing and a rise in the number of people moving to big cities to find work. The COVID-19 pandemic has also made things worse because many renters are finding it difficult to pay their rent because of lost jobs and income. These elements working together have increased demand for rental properties, but the supply has not kept up, pushing up prices and making it challenging for many renters to find a place to live.
Both renters and the larger real estate market are experiencing significant effects of the rental crisis. Renters will face higher costs, more competition, and a greater chance of being priced out of the market.
Overall, the conflicting information about the Australian real estate market creates a confusing picture for both buyers and renters. Even though the increase in real estate listings might help buyers in the short term, the worsening rental crisis could cause rents to go up even more and make it harder to find a place to live. As the market keeps changing, it’s important for both buyers and renters to stay up-to-date and ready for any changes that may come up.