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National
Elizabeth Cramsie and staff

Will Queensland's proposed rental increase laws actually limit rent increases?

Landlords will only be able to raise the rent once a year but there will be no limit on how much. (ABC News: Curtis Rodda)

Queensland's rental market is, to put it simply, under pressure.

There are just not enough properties to go around. As a result, rents have been rising at well above the rate of inflation, which itself is still high.

But at the same time, the pool of available rental properties has been shrinking in many places, putting even more upward pressure on rents.

You might have heard the state government plans to change the rules around rental increases.

Premier Annastacia Palaszczuk says the changes, requiring new legislation, will allow rent increases every 12 months instead of every six.

But what, if any, difference will that make to the rental squeeze?

Let's take a look.

Is there a limit on the amount rent can increase in Queensland?

The short answer is no.

As it stands, there is no maximum amount or percentage to limit the size of rent increases.

Which means limiting rises to once a year might simply end up becoming one big annual spike in rents.

Of course, there are market factors at play and if demand wasn't sky high, excessive rental prices would make finding tenants more difficult.

But right now, there are way more prospective tenants than available properties.

Rents have been rising dramitically in Brisbane. (ABC News: Curtis Rodda)

Will the government's changes help to cap rents?

Probably not.

The hope is that by limiting the opportunity to raise rents, there will be a higher chance of market conditions returning to something more normal, in which supply and demand are better balanced.

In reality, the only ways to reduce the pressure on rents is to either dramatically increase the pool of available properties, or reduce the number of prospective tenants.

The state government has introduced a number of initiatives aimed at increasing construction of social and affordable housing. But it will be years before these new properties become available.

Advocacy group Tenants Queensland is urging the state government to do more to identify vacant properties and have them tenanted, and to look at ways to pull more properties off the short-term letting market (think Airbnb) and back into the regular rental pool.

Tenants Queensland argues more must be done to get people into the thousands of empty and abandoned houses across the south-east region. (ABC Riverina: Shannon Corvo)

Meanwhile, the population of south-east Queensland continues to grow at about 2 per cent a year, thanks to interstate and overseas migration.

Basically, all of this means limiting rent rises to once a year will only delay the inevitable.

How does Queensland compare with other states?

The ACT limits rent rises to 110 per cent of the consumer price index (CPI).

This means landlords can increase their property's rent by up to 10 per cent more than the rate of inflation.

In New South Wales, there is no maximum limit, but rents can only be increased once every 12 months.

The same goes for Victoria, Tasmania and South Australia.

Western Australia and the Northern Territory allow for increases every six months.

Can rent be increased during a lease?

Yes and no.

Your rent can't be increased during a fixed-term agreement, unless that is specifically written into the rental agreement – you must also be given two months' notice in writing.

Under a periodic agreement, you must also receive two months' notice in writing of a rent rise.

Housing advocates say getting off blacklists can be tricky.  (ABC News: Curtis Rodda)

If you find yourself on the rental blacklist, how long does that last?

If you've found yourself on the blacklist, technically you can only be listed for three years.

However, advocacy groups say they are aware of scenarios in which tenants haven't been removed and have had to seek assistance from unions.

Are there any steps renters can take to limit rental increases?

Negotiate, negotiate, negotiate.

If you receive notification of an intended increase that you simply can't afford, have a conversation with your landlord or property manager.

If tenants feel a rent raise is excessive, they can apply to have it reviewed in the Queensland Civil and Administrative Tribunal (QCAT).

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