How to shift from a residential to commercial portfolio
Many things feel uncertain in the world at the moment, but one thing’s for sure, commercial property is producing some...
The team Australia mantra has not been lost on Queensland landlords and property managers, with new research showing they have performed more than double the heavy lifting expected of them.
With over 1,200 REIQ property management member agencies surveyed throughout Queensland, the results show that only 6.05 per cent of residential rental tenants qualified as “COVID-19 impacted” under the state government’s COVID-19 Emergency Response Regulation.
This represents approximately 3,950 renters from a state total in excess of 577,000 residential tenancies.
Despite 3,950 tenants qualifying, over 10,800 tenants in Queensland have received rental assistance during the COVID-19 pandemic.
REIQ CEO Antonia Mercorella said industry data like this is vital to help understand the essential nature of the real estate sector during unique circumstances such as the COVID-19 pandemic and its role in supporting the broader Queensland economy.
“The role our industry’s property managers have played throughout this pandemic is truly exemplary,” Ms Mercorella said.
A tenancy is generally deemed to be “COVID-19 impacted” if a tenant is impacted by COVID-19 in certain ways and, in addition, the tenant has suffered a loss of income of 25 per cent or more, or the rent payable is 30 per cent or more of a person’s income.
A majority of negotiations achieved a satisfactory outcome regarding temporary rent reductions, with fewer than 800 referred to the Residential Tenancies Authority for further conciliation.
The bulk of these temporary rent reduction reviews took place across Brisbane (37.2 per cent), Gold Coast (14.88 per cent), Coast (12.09 per cent) and Cairns (6.51 per cent), with the majority of tenants requiring a rent reduction of up to $100 per week (69.3 per cent).
A further 23.72 per cent of rental tenants have required a temporary rent reduction of up to $200, 5.12 per cent a reduction of up to $300, and 1.86 per cent a reduction of over $300 which represents just over 200 tenants.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.