It’s good news for Brisbane landlords after new Residential Tenancies Authority’s latest stats showed rents remained flat during the second half of 2011.

“Across Brisbane we had a 4% rise in rents last year but all of that was in the first half of 2011. Landlords have been patient and this busy start to 2012 is really encouraging,” Ms von Rudzinski said. “At the moment it’s not uncommon for more than a dozen tenants to arrive at each rental inspection. The supply of rental homes has not grown much at all but we’re still getting new tenants coming to Brisbane,” she said.

“Across Brisbane the total rental pool grew by just 1,131 properties (less than 1%) in the December quarter. In the inner-city suburbs we now have less rental homes to offer tenants than we did 3 months ago, so it’s inevitable rents will rise in that sort of market.”

December’s RTA stats showed no increase in rents since the June quarter. A 2 bedroom Brisbane apartment remained at $380 per week.

And sometimes those who should know better can come unstuck too. According to the RTA’s latest news two principals of a Brisbane real estate agency have been fined $3,000 each for six offences including adding special terms into tenancy agreements in breach of the Act. They were ordered to write to all existing tenants and inform them that certain special terms that had been written into the agreements would not be enforced.

No conviction was recorded.

Some of this is due to new apartment projects in West End adding higher quality stock to their rental pool.  But on any measure the Gabba and its surrounds have plenty to offer and the area’s proximity to the CBD is often overlooked. Rents across the inner-city were generally flat through 2009 and 2010 but patient landlords look like they’ll now be rewarded. In Woolloongabba there might be some “catch up” in the next couple of years.

Note: RTA stats quoted here cover all of postcode 4102 including Dutton Park. Buranda is a locality within the suburb of Woolloongabba so its also included.

And interestingly the gap between postcode 4000 and 4101 is shrinking noticably. It’s now just $40/week dearer to live in the CBD than the West End/South Brisbane/Highgate Hill area, where it was $100 more a couple of years back. Why? One reason is the new developments through West End’s riverside precinct that  have added a number of quality apartments with typically high rents. The inner-south’s early history may have been working class, but these suburb’s tenants now pay some of the highest rents in Queensland.

Go to www.WhatRentMyHome.com.au to see current median rents for other Brisbane suburbs. Note: RTA stats quoted here cover all of postcode 4101 including Highgate Hill, South Brisbane and West End.

Bees Nees Research Managing Director, Rob Honeycombe says Brisbane’s rents rose for both apartments and houses during the March quarter. Residential Tenancies Authority stats released today show upward pressure on rents right across Brisbane’s suburbs.

“People will point to the January floods as the reason for rents rising, and some heavily-effected suburbs did have spikes in their rents. A 2 bedroom apartment in St Lucia for example jumped $20 per week, with many apartments still damaged at the start of the University year. But other flood-impacted areas like Rosalie, Milton and Paddington actually saw a drop of $5 per week.” 

“We’d argue the trend was already in place for increases to rents. Without new construction in recent years the market was always going to catch up and we now have a rental housing shortage. Brisbane tenants have had pretty flat rents for over 2 years but their rents are now definitely on the rise”.

A median 3 bedroom Brisbane house now rents for $390 per week, while a 2 bedroom apartment is $375.

“One clear impact of the floods was that unless tenants had to move, they stayed put. Turnover was lower than for the same period in 2010, especially in inner-city suburbs where there were 7% less new bonds lodged this past quarter.”

Bond refunds to individuals and companies are put into this group when the cheque remains uncashed after 15 months, and you can check if you’re on the list by visiting the website.

Out of interest the RTA invests a big chunk of those rental bonds through the Queensland Investment Corporation (QIC) in line with its own investment strategy. The income from those investments funds much of the activities of the RTA.

Bees Nees head of Property Management Annie von Rudzinski said a more balanced market had replaced the strong rental growth of 2007-2008.

“In postcode 4101 for example we have the same median rents for a 2 bed apartment that we did in September 2008 at $450 per week. The appeal of South Brisbane, West End and Highgate Hill is still very much on the rise but saving money in tougher times has drawn some tenants into cheaper areas further out.”

The RTA shows rents are flat right across Brisbane and Ms von Rudzinski believes landlords are reluctant to push for rent increases. “Rising interest rates do make some landlords nervous and that has a flow on effect. To see a drop in popular spots like Fairfield and Annerley (down $10 to $310 per week for a 2 bed apartment) suggests tenants are getting good value. A typical house in that area is still $400 per week, the same level as September 2008.”

One of the few inner city areas to see a rise in the June quarter was a $10 increase for Woolloongabba/Dutton Park apartments.

The legislation won’t be passed until September but from December 1^st it looks certain you’ll need a pool fence inspection if you want to sell or rent your property. A qualified inspector will need to check it and issue a compliance certificate, and you’ll need to do any works to bring it up to today’s laws. So for example those self-closing doors on the living room won’t be enough any more. Your certificate will need reissuing every 2 years and body corps will be required to have an annual inspection.

Our suggestion: get these underway well before December because you won’t be allowed to sign a lease or a sale contract without your certificate and the inspectors are going to be a tad busy. Watch the small print too – any body of water more than 300mm deep that’s kept full and usually used for swimming will be captured. Visit the website or talk to your property manager now.

Landlords might like to keep an eye on further changes in the wind. We expect you’ll be required to prepare a Sustainability Declaration from mid 2011 to show any prospective tenant if the home’s energy efficient etc. And in a controversial move the tenancy lobby groups are currently arguing for an end to giving tenants a “notice to leave without grounds”. So landlords may lose the ability to choose who lives in their property. If you’d like to have a say on this one why not send the Housing Minister an email? It’s Karen Struthers at communityservices@ministerial.qld.gov.au

Like to have a rant on these issues?! Make a comment.

Brisbane’s rental market has had a massive boost, with over 1100 homes added to the rental pool in the first quarter of 2010. According to new Residential Tenancies Authority stats the past year’s decline in the number of rented homes has finally stopped.

Bees Nees Research Managing Director, Rob Honeycombe says investors have replaced first home buyers and are offering Brisbane’s tenants more choice.

“Investors have been sitting on the sidelines and during 2009 the rental pool just continued to shrink.  There’s now a lot more confidence in bricks and mortar and the RTA stats show property investors have started to dive in,” Mr Honeycombe said.

The RTA track all rental bonds and across Brisbane the total leapt by 1145 in the March quarter. Mr Honeycombe said this data followed this week’s ABS finance stats which showed investors’ share of lending is growing strongly.

“The inner city has been the standout, with 693 extra rental homes added since the start of 2010. That’s more growth in a quarter than we’ve seen since 2006.”

Mr Honeycombe said rents had mostly showed small gains, with Brisbane’s median 2 bedroom apartment rent now at $365 per week.

To get the latest median rent for your suburb visit www.WhatRentMyHome.com.au

Bees Nees' Annie von Rudzinski

Manager Annie von Rudzinski elected to the Property Management Chapter Committee for the Real Estate Institute of Queensland.  Annie has worked in this part of the industry since the early 1990’s and her appointment recognises her experience, and ability to help direct REIQ’s position on legislation and other tenancy issues. Annie’s keen to hear input on how things could be improved on all sides of the rental marketplace.

Principal Rob Honeycombe has also been asked to join the Residential Tenancies Authority’s Industry Development Forum. Rob was recently elected to the board of the REIQ and will represent the Institute at this Forum. After a new full Act’s introduction in 2009 this is a quieter year for the RTA, but the industry’s still adapting to the changes.