Choosing the right property management agency will be a high priority for landlords and tenants in the wake of new rental regulation reforms ushered in last month.

Assent was given on 6 June to Stage 2 Rental Law Reforms with further changes set to be rolled out later in the year.

The reforms form part of the new Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024, which was passed in May with the aim of improving rental conditions for tenants, while also protecting the rights of landlords.

While several changes have been introduced, Kollosche’s property management team has identified three key points it believes will have the greatest impact on clients in the luxury market. They are:

• A ban on all forms of rent bidding. This means a property manager can no longer accept a rental offer which is above the advertised price.
• Restrictions around accepting rent in advance. For fixed tenancies, landlords can no longer collect more than a month’s rent at any given time, while for room tenancies the cap is two weeks’ worth of rent.
• Limited rent increases. Rent rises are now capped to once every 12 months, with the rise attached to the property rather than the tenancy. Landlords must also supply a written agreement showing the date of the last rent increase.

Kollosche head of property management Todd Madgwick says while the changes may be more restrictive on landlords the impact should be minimal if the tenancy is managed effectively.

Pricing a rental property accurately within the market from the outset will be key, according to Todd.

“While agents don’t set the rent, we do advise clients on market conditions.

“You don’t want to underestimate rental demand and undercut the property’s potential, nor overvalue it and risk it sitting empty on the market.”

Todd admits getting it right can be tricky, particularly in a fast-moving market where conditions are constantly changing. This is why having an experienced and trusted property agent is essential.

“At Kollosche, our property team undergoes weekly education and training to allow agents to stay up to date on key things such as vacancy rates and emerging trends. Things move quickly, particularly at the top end, so we make sure we’re across that as a group.”

The inability to collect more than a month’s rent at a time means the right tenant selection will also be critical, says Todd.

“Making sure that the right people, who can pay the rent consistently, are in the property will become key. At Kollosche we follow a thorough process to ensure we are matching the right tenants to the right properties. This is for tenants’ protection too.”

Essentially, if leasing agents are doing their job well, Todd says the recent law reforms should have minimal impact on landlords, while ensuring tenants receive a fair market rate.

“The No. 1 priority for the Kollosche property management team is to alleviate as much of the stress on our clients – landlords and tenants – as possible.”

While the most recent rental data shows that the vacancy rates on the Gold Coast have relaxed marginally across the board, demand for rental properties remains strong.

Todd says the Gold Coast is still an optimal market for investors and the recent rental changes should not have any impact on investment in the region.

“We’re really lucky on the Gold Coast in that returns and yields remain really strong,” he says.

“The lifestyle and market conditions are still driving a lot of migration, so vacancy rates, although eased, are still way below normal levels. If you are an investor, there is definitely advantages to buying here, including good capital growth and solid mid to long-term rental returns.”