Tag Archives | Brisbane Property Rentals Latest Statistics

Tenants Will Pay More to Stay in the Same Homes

Tenants generally prefer to pay slightly more rent and extend their lease rather than move home.

Two thirds of renters are prepared to pay up to 5 per cent more rent in order to stay put according to a recent survey of over 600 tenants.

Important considerations included:

  • Length of lease
  • Location
  • Housing type
  • Repairs and Maintenance being up kept
  • Affordability

The majority of tenants realise the importance of having secure long-term tenancy arrangements. Everyone wins. Landlord knows that they have a quality tenant and the tenant appreciates the security of their tenure.

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How to Give Tenants’ Notice Without Grounds

A lessor rents out his investment property on a fixed term agreement which is due to end on 31 December. He decides to allow his student son to move into the property, which is near the university, on 1 February.

The lessor would like the current tenants to move out on 31 January, and he gives them written Notice to leave on 30 November.

After the fixed term agreement ends on 31 December the agreement becomes periodic, meaning the tenant can leave at any stage by giving two weeks notice.

When a lessor ends a tenancy agreement without grounds, they must give the tenant two months notice to leave. This applies to fixed term as well as periodic agreements.

The Residential Tenancies and Rooming Accommodation Act 2008 (the Act) allows a tenancy to end for a number of different reasons, such as non-liveability or abandonment. The Act also allows a tenancy to be ended ‘without grounds’ if the party ending the agreement does not give a specific reason.

A lessor cannot end a fixed term agreement without grounds before the agreement’s end date, unless the tenant agrees.

Fixed term agreements can end only when either the lessor or tenant gives written notice. When the fixed term agreement moves beyond its agreed end date – and if neither party has given notice – it becomes a periodic agreement.

A lessor or tenant can end a fixed term or periodic agreement. When a tenant decides to leave the rented property, they must give the lessor two weeks notice. However, if it is a fixed term agreement, a tenant cannot leave before the agreement’s end date unless the lessor agrees.

If a fixed term agreement is for a period of six months, the lessor and tenant should be aware that negotiations about continuing the tenancy agreement may sometimes begin three months before the end of the tenancy.

When a lessor presents a tenant with a Notice to leave (Form 12), giving the required two months notice, the tenant might choose to find a new rental property immediately, but in a fixed term tenancy, the tenant cannot leave before the agreement’s end date unless the lessor agrees.

More information about ending a tenancy without grounds is available on the RTA website.

Last Updated: 03 August 2011  Source RTA

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Free Help for Landlord and Tenant Disputes

Whether you’re a lessor (landlord), agent or a tenant, disputes can occur over everything from money matters to repairs. The RTA encourages people to communicate with each other to resolve such issues. But if an agreement cannot be reached, the RTA offers a free dispute resolution service.

Dispute resolution team leader Lalita D’Netto said the service helped to re-open the lines of communication. “Our conciliators help people find common ground,” Lalita said. “Most people are reasonable when they are made aware of the issues and sometimes it helps to talk through concerns with an impartial person.”

RTA conciliators cannot instruct people what to do, nor can they make decisions for them. Lalita said most people want to resolve the dispute rather than having the Queensland Civil and Administrative Tribunal (QCAT) make a ruling on their behalf.

The RTA conducts dispute resolution in three ways:

  • three-way telephone conference
  • face-to-face conciliation
  • telephone shuttle: where RTA conciliators hold separate telephone enquiries with each disputing person.

The conciliator will choose the best way to deal with the dispute depending on the circumstances involved. The most common disputes occurred during a tenancy and at the end of a tenancy (mainly involving bond refunds), Lalita said. If the dispute cannot be resolved, either party can lodge a Dispute resolution request (Form 16) with the RTA.

Once the RTA receives the form, it is registered, a conciliator is allocated and letters are sent out to each party inviting them to take part in a telephone conference. Lalita said people who wanted to use the dispute resolution service should have prepared documentation like receipts. She said disputes were assessed depending on urgency but most cases were dealt with within 28 days.

 If a resolution cannot be reached, a Notice of unresolved dispute is issued to the person who lodged the Form 16. When the issue relates to a bond dispute, under the legislation the party has seven days to apply to QCAT and notify the RTA of their intentions. People applying to QCAT must lodge the RTA’s Notice of unresolved dispute with their tribunal application. The exception to this rule is if the application is classed as urgent.

The RTA received over 21,000 dispute resolution requests in 2010-11. Approximately 14 per cent went on to become applications to QCAT.

Last Updated: 03 August 2011 Source RTA

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Rental Growth Versus Capital Growth Who is the Winner?

Over the last five years the debate about the affordability of purchasing a home has intensified. What is often missed is the fact that over this time capital city rental rates have increased at a greater average annual rate than capital city property values.

Over the five years to February 2011 capital city rental rates have risen at a faster average annual rate than capital city property values. Both rents and values have climbed much faster than inflation indicating that housing has become more expensive over the past five years, regardless of whether you choose to own or rent.

Over the last five years capital city house values have increased at an average annual rate of 6.2% and unit values at 6.7%. In comparison, rental rates have increased on average by 6.8% for houses and unit rents by 7.5% per annum. The result indicates that growth in house values and rents has been of a similar level however, rental growth for units has well and truly outpaced capital growth.

Over a similar period, December 2005 to December 2010, average end of year inflation has been recorded at 2.9%. The result indicates that housing costs have been increasing at a much faster pace than inflation.

Across the capital cities, capital growth performances have varied significantly during the last five years. Darwin has been the standout performer with property values pretty much consistently increasing until recent months. Over the past five years Darwin house values have increased at an average annual rate of 10.3% and unit values increased by 11.5% per annum. On the other hand, Sydney has been a laggard with house values increasing by 4.1% on average annually and unit values increasing by an average of 5.0% per annum.

 

As already mentioned, capital city rental growth has been stronger than capital growth over the past five years. Darwin was the best performing city for capital growth and has also recorded the strongest rental growth however, rental prices have failed to keep pace with capital gains. Over the last five years, house and unit rents have both increased at an average annual rate of 10.0%.

The cities and product types which have enjoyed the strongest capital growth have also tended to receive the greatest increases in rental rates. This is indicative of strong demand for housing in these regions over recent years with owners and renters preparing to pay a premium to secure accommodation.

 

On an annual average basis, rental growth over the past five years has been stronger in Sydney and Perth for both houses and units than the growth in property values. In all other cities average annual growth in property values has been stronger however, in most the differential is quite minor.

RP Data has stated for some time now that we expect that rental growth will accelerate during 2011 as property value growth continues to transition out of the market. As the first graph shows, rental growth has typically been strongest during the past five years during times when property value growth was limited.

Investors and first home buyers are largely remaining out of the market, housing affordability is stretched due to recent value growth, and above average interest rates and construction are likely to be quite weak during 2011. With this in mind, we anticipate that this will lead to increasing upwards pressure on rents through at least 2011. Also rental growth has been sluggish for quite some time and we expect there to be improvements due to owners requiring a superior rental return to that which they are currently receiving.

Source RP DATA

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Rents On The Up And Up

Median rents in Queensland increased only slightly over the last year.

In Brisbane, the median rent for three bedroom houses rose by $10 a week to $380 a week and two bedroom units were also up $10 from $355 a week, to $365 between December 2009 and December 2010.

The rest of the state was much the same with figures collated from bonds lodged with the RTA mainly showing marginal increases over the 12 month period.

To view all the data for the December quarter click here Median Rents December 2010.

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