Is Tenancy Reform an opportunity in disguise?

We knew Victorian reform would be upon us in 2020 but December 2019 delivered news of proposed Queensland Tenancy Reform and that New South Wales had finally decided to pass its legislative changes in Parliament after a three year wait, a week before Christmas with delivery due on the 23rd March 2020. Needless to say, December did not go according to plan for me.

Victoria is due to settle the majority of its 130 changes on the 1st July but the government obviously has a secret plan to test the water as they have commenced sporadically releasing snippets of legislation just to see what happens.

Queensland reform is only at the very beginning of community consultation so we are not expecting to see any changes until 2021.

New South Wales drops into gear for 50 reform changes from 23rd March, coupled with new real estate licensing legislation for the state. In particular for property managers, it's fair to say there is a lot going on.

Despite the lack of coordination for reform amongst the states, the changes are good for the industry. More legislation as opposed to different legislation actually makes the role of a property manager easier as there are less situations left to negotiation.

What has been highly surprising amongst all of the reform is the tone of voice from industry, particularly industry bodies. The unanimous approach seems to be one of doom.

Is it really that surprising that reform along the eastern seaboard is needed given Australia has been beyond the tipping point for some time on home ownership affordability? That governments are moving swiftly to create reform for tenants who want to consider their rental property their home?

Isn’t this what we wanted? Tenants to treat the property like a home?

It’s true, the amount of changes is overwhelming but if we spend the time now to learn the changes, which I am witnessing our network charge towards this in Victoria, then we are in a position of opportunity.

Our rental providers and landlords plus our renters and tenants are at the forefront of these history making changes. They are looking to us to have it together and to guide them through their options. Can you sense the opportunity?

The reality for our network is that we have been in training in Victoria and New South Wales at least six months ahead of time. We are in the box seat as a group to advise our clients of their obligations and how we can continue to support them as property investors.

If the opportunity presents itself to you to talk about industry reform, I challenge you to speak from a place of knowledge. Just as Build to Rent emerges as an additional housing option and electric cars will replace today’s petrol fueled versions, these reforms are needed to support our changing society and accommodate growth to the tenancy sector.