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Rental ‘black market’ must be stopped: REIQ

By Juliet Helmke
25 January 2024 | 11 minute read
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The Real Estate Institute of Queensland (REIQ) has highlighted a troubling trend of spaces not fit for habitation being offered to renters in need.

“It is highly disturbing to see reports that backyards, garages and storage spaces are being advertised for rent for people to reside in,” said the REIQ’s CEO, Antonia Mercorella.

The body is calling on the government to urgently investigate and find ways to deter such “accommodation” from being offered.

Ms Mercorella characterised the people behind these advertisements in terms that they are taking advantage of the state’s growing rental crisis to make money off Queenslanders desperate for homes.

“We would like to see the full force of the law coming down on these opportunistic people. This black market of grossly substandard ‘sites for rent’ needs to be nipped in the bud.”

The vast majority – or nearly 90 per cent – of rental properties in Queensland are represented by professional property managers, while the remainder are managed by property owners. However, Ms Mercorella said there are potentially more flying under the regulatory radar.

“Real estate professionals are required by law to understand and comply with a raft or ever-changing and complex legislation, and they take this responsibility very seriously,” she said, commenting that it is highly unlikely many of the “black market” properties are up to code.

“Chances are that those deplorably looking to rent out backyards, garages and storage spaces for a quick buck are self-managed, would-be ‘lessors’, who are either ignorant of the law or are blatantly thumbing their noses at it.

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“Even if your property is not represented by a real estate professional, there is really no excuse for non-compliance, given the Residential Tenancies Authority provides a suite of free educational resources about lessor obligations,” she added.

In the REIQ’s view, the emergence of such non-compliant properties should send a message to the government to step up its game on social housing.

“The chronic social housing underspend over the past decade is being laid bare – none of us wants to see people living in tents or sleeping in cars, but that is the harsh reality before us,” Ms Mercorella said.

“Only 270 social houses were completed in our state last year, compared to a growing social housing waitlist of more than 43,000 Queenslanders.

“Vulnerable people who are desperate for shelter, safety and security have been left to make impossible choices.”

ABOUT THE AUTHOR


Juliet Helmke

Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.

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