New rental laws aimed at stabilising the market and providing greater security for tenants have  posed an early challenge for landlords in the midst of changing market conditions.  

Under the latest round of Queensland rental reforms, rent increases are limited to once every 12 months attached to the property rather than the tenancy. This change, while aiming to protect tenants from frequent rent hikes, means landlords no longer have the flexibility to adjust the rent in response to interest rate rises and market conditions.  

Todd Madgwick, Head of Property Management at Kollosche, says his team is working very closely with landlords to navigate the change amidst the backdrop of the winter market, when days on market can be longer and prices less robust.  

“Of all the changes, this is probably the one that we’re seeing the most impact from,” explains Todd. “Normally, we would set the rental price now and then increase it again in six months when the market is stronger. But we don’t have that luxury now. We have to get the rent right from the start because we can’t make any changes for a full year.” 

According to the latest SQM Research, the Gold Coast’s rental vacancy rate is sitting at 1.7% – that’s slightly higher than 1.6% for the same time last year and the highest it’s been since October 2020, meaning slightly more choice for tenants.  

For Lease 8 Wyuna Street, Broadbeach Waters

While the new legislation on rent increases poses challenges, it also encourages a more disciplined and data-driven approach to property management.  

Comprehensive market analysis is more important than ever before, says Todd, who highlights that estate agents play a crucial role by providing data-driven insights and accurate valuations. Agents evaluate a rental by considering various factors, including current market trends, recent comparable rentals, and the property’s condition and location. Agencies and landlords must ensure that the rent set is competitive yet sufficient to cover costs and meet their financial goals. 

“We’re using as many resources as possible to support our discussions with clients around price adjustments and strategies,” says Todd. “We are also digging for feedback from prospective tenants during the inspection period to further inform our pricing discussions.”  

For Lease 302/124-126 Jefferson Lane, Palm Beach

Kollosche also executes thorough marketing strategies to attract the largest pool of potential tenants. “Digital marketing is at the forefront of our strategies, as we’re able to target specific demographics,” says Todd. “Second to that, we have an active presence in Saturday’s Gold Coast Bulletin, paid for by our agency, and we’re doing mailbox drops, creating video content of properties, leveraging our database, and ensuring signboard visibility.”  

By leveraging the expertise of estate agents and embracing innovative marketing techniques, landlords can successfully navigate this transition and secure the best possible outcomes for their rentals. Todd’s advice is clear: “It’s all about adjusting strategies, using data effectively, and being proactive in marketing to ensure we get the best results for our clients.”
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Read more: Tackling Rental Law Reform  

Inspect: View Gold Coast homes for rent