Rental Crisis: What Renters & Landlords Need To Know | Orchard Property Sales and Rentals

Rental Crisis: What Renters & Landlords Need To Know

The Sunshine Coast is currently experiencing one of the worst rental crises in recent decades, with housing affordability continuing to stay out of reach, and more competition for rental properties than ever before.

At Orchard Property Sales and Rentals, we know how special it is living on the Sunshine Coast, and we work with property owners and rentals to make this dream a reality. In this latest blog update, we will be analysing the rental crisis, and breaking down everything that renters and landlords need to know.

Understanding Rental Increases

One of the most talked about parts of the rental crisis has been the increase in rental prices across the Sunshine Coast. Some areas like Noosa have seen increases of as much as 16.75% in just 12 months.

This has largely been driven by demand and interest rate increases, which makes repayments on mortgages more expensive and housing affordability more difficult.

According to the Residential Tenancies Authority (RTA), as of July 1, 2023, legislation limits the frequency of rent increases to ensure fairness in the rental market. Here are some key points renters and landlords need to be aware of:

How Often Can Rent Be Increased?

Rent can only be increased once every 12 months from when the current rent was set or last increased.

Notice Requirements

For a periodic agreement, landlords must provide at least two months’ notice before the rent increase for general tenancies and four weeks for rooming accommodations.

Fixed-term Agreements

If a rent increase clause is included in the fixed-term tenancy agreement, the landlord must still provide the tenant with two months’ notice, respecting the 12-month limitation.

When Rent Increases May Be Deemed Excessive

Tenants have the right to dispute an increase if it seems excessive. If you are considering contesting a rental increase, or if you are considering increasing the rental price of your investment property, here is what needs to be considered:

  • Comparison with similar properties in the market.
  • The condition and state of repair of the property.
  • The duration since the last rent increase.

If a consensus cannot be reached, tenants may seek mediation or approach the Queensland Civil and Administrative Tribunal (QCAT) for a resolution.

Sunshine Coast Property Managers | Sunshine Coast Rental Crisis

Rental Bonds and Increases

When rent is increased, the bond may also be raised if it’s been at least 11 months since the last increase or the start of the tenancy. Landlords must provide a minimum of one month’s notice for the bond increase after notifying about the rent increase.

Advice for Landlords

At Orchard Property Sales and Rentals, we help landlords find the right tenants and manage their property effectively with our Sunshine Coast property management services. Here are 3 tips from our team for landings to navigate the rental crisis effectively:

  • Stay informed about legal changes and ensure compliance with all regulations.
  • Maintain open and transparent communication with tenants, especially regarding changes in rent or tenancy agreements.
  • Consider the long-term benefits of stable tenancies, which may mean more moderate and fair rent increases.

Advice for Sunshine Coast Renters

Here is some advice from our property experts for renters on the Sunshine Coast:

  • Understand your rights under the current rental laws, including how and when rent can be increased. This blog post provides a great outline on this, but remember that these can change over time.
  • Keep communication lines open with landlords and promptly discuss any concerns, particularly about rent increases.

Plan financially for possible rent increases and explore rental assistance programs if necessary.

Orchard Property Sales & Rentals, Your Local Real Estate Team

The rental crisis on the Sunshine Coast calls for a balanced approach from both renters and landlords. By understanding the legal frameworks and market conditions, both parties can navigate these challenging times more effectively. Staying informed and engaging in fair practices will be key to maintaining stability in the rental market on the Sunshine Coast.

Contact us today by calling (07) 5475 4500 or contacting us through our website.

The Benefits of Hiring a Local Sunshine Coast Real Estate Agent | Maroochydore Real Estate Agency & Property Management

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Further Information

For more details on rental processes and tenant rights in Queensland, visit the Residential Tenancies Authority website.