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Only 6% of renters qualified as “COVID-19 impacted”: REIQ

Only 6% of renters qualified as COVID-19 impacted REIQ

A recent industry survey conducted by the Real Estate Institute of Queensland (REIQ) reveals that Property Managers across Queensland’s real estate industry have performed more than double the amount of ‘heavy lifting’ when it comes to rent negotiations between landlords and rental tenants.

This is outside of the Palaszczuk Government’s Residential Tenancies and Rooming Accommodation (COVID-19 Emergency Response) Regulation 2020.

REIQ CEO Antonia Mercorella says 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. “This member survey aimed to identify a whole-of-industry snapshot in regards to the important role and to what scale our sector played in negotiating temporary reduced rents on behalf of more than 14,000 rental tenants with their landlords,” explains Ms. Mercorella. “Real estate professionals manage close to 600,000 Queensland households through property management services. The demand for more effective recognition of our industry during any future crisis of this nature is now more apparent, with property managers overseeing more than a double caseload of temporary rent reduction requests from tenants suddenly faced with the inability to fulfil their rent obligations.”

With over 1,200 REIQ property management member agencies surveyed throughout Queensland, the results show that only 6.05% 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 (Census, 2016). 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% or more, or the rent payable is 30% 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.

Furthermore, Property Managers proactively negotiated an additional 14% of temporary rent reduction requests beyond the COVID-19 Emergency Response Regulation, representing over 10,800 residential tenancies. That’s more than double the amount of qualified lease renegotiations recognised as ‘COVID-19 impacted.’ The bulk of these temporary rent reduction reviews took place across Brisbane (37.2%), Gold Coast (14.88%), Sunshine Coast (12.09%) and Cairns (6.51%) with the majority of tenants requiring a rent reduction of up to $100 per week (69.3%). A further 23.72% of rental tenants have required a temporary rent reduction of up to $200; 5.12% a reduction of up to $300; and, 1.86% a reduction of over $300 which represents just over 200 tenants.

“By the time the Prime Minister’s proposed protective measures for residential tenancies via a six-month moratorium on evictions reached the Palaszczuk Government, a highly-coordinated industry campaign for more fair and balanced protections for both tenants and landlords ensued,” says Ms. Mercorella. “However, the REIQ recognised that many rental tenants and landlords simply couldn’t wait. Large scale job losses were already in motion, with the entertainment, events, food and beverage, and tourism industries virtually grinding to a halt overnight. As a result, we were quick to work proactively with Property Managers across our member agencies to achieve an immediate framework of resources for tenants and property owners in significant financial distress to come together to negotiate temporary rent reductions in order reach an amicable outcome for both parties.

“The role our industry’s Property Managers have played throughout this pandemic is truly exemplary,” adds Ms. Mercorella.

 

 

 

This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.

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Employment

Skills Shortages Boost Pay for Property Professionals

property

Salaries and wages growth across the property industry is rising well ahead of the broader population’s wages, according to the latest Avdiev Property Industry Remuneration Report.

The report, based on a bi-annual survey of property, investment, construction employers and design and construction-related consultants, found the pace of annual pay rises expanded to 3 per cent in the six months since the previous survey.

Property sector remuneration is now well ahead of the broader population’s wages which is languishing at 1.7 per cent.

The report found that the property investment sector offered the largest increases, ranging from 3 per cent to 4 per cent.

Avdiev principal of remuneration consultants Debra Moloney said the industry as a whole had escaped relatively unscathed from the pandemic and is looking forward to reopening with confidence.

“The property industry is well known for surviving peaks and troughs, which perhaps put it in good stead for dealing with the pandemic,” Moloney said.

“The industry as a whole has continued on quite strongly, despite the lockdowns, and is well positioned as the economy begins to reopen.”

More broadly, over 40 per cent of property companies had now resumed full pay increases with one-in-five respondents offered higher-than-usual pay increases to make up for stalled pay across 2020. One in ten still have wages frozen and 3 per cent wages cut.

Property professionals’ remuneration

Sector Position National median March 2021 Median % increase for last reviews to September 2021 Median % Increase forecast next reviews to September 2022
Property Investment, Funds & Trusts Management Asset Manager > $500 AUM $270,000 3% 3%
Property Development Sales Manager $205,095 2.5% 3%
Retirement Living / Aged Care Property Upgrades Manager $111,438 3% 2.5%
Retail Management Assistant Centre Manager $76,600 2.8% 2%
Real Estate Agency / Advisory Senior Facilities Manager $120,000 3% 3%
Design & Building Consultants Project Manager (mid level) $115,000 3% 1.5%
Building, Design & Construction Contracts Manager $189,800 2.3% 2.4%
Corporate Sustainability Analyst $95,000 3% 2.5%

^Source: AVDIEV, as at October 2021

Amid the stronger remuneration market, the Avdiev survey found that property companies are also paying bonuses, with over 60 per cent expecting to pay their usual short-term incentives in 2021 and 6 per cent expecting an increased short term incentive.

More than three-quarters of the companies surveyed are also adding superannuation increase to total remuneration, effectively delivering staff a built-in 2.5 per cent pay rise over the next five years.

Across the country, states that endured the toughest lockdowns are also confident about their performance with four in five NSW companies and three in four of Victoria companies said they are doing “well” or “very well”.

Meanwhile, one in three property companies in Western Australia and Queensland are doing better than prior to Covid-19.

In spite of the upturn, survey results suggested a tight labour market, with nearly half experiencing a skills shortage and the vast majority noting higher than usual staff turnover in some sectors.

On the issue of vaccination, as the economy opens up many property companies said they weren’t planning to make vaccination compulsory, but noted they would not hire unvaccinated staff moving forward.

Most staff in the property industry have shifted to a work-from-home setup, with over half of the companies surveyed planning or working to a hybrid arrangement, and one in three returning to the office full time.

 

Article Source: www.theurbandeveloper.com

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Property Management

Queensland landlords, property managers go above and beyond

Queensland landlords, property managers go above and beyond

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), Sunshine 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.

 

 

 

This article is republished from www.smartpropertyinvestment.com.au under a Creative Commons license. Read the original article.

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Property Management

Gold Coast villa is Australia’s most popular Airbnb

gold coast property management

A LUXURY Hinterland villa in Mount Nathan has been crowned Australia’s most popular Airbnb listing for 2017.

A STUNNING outlook over the lush green hinterland, a 25m lap pool set up for dive in movies, sunset views from the spa and you can bring your dog (or horse!).

A luxury hinterland villa in Mount Nathan has been named Australia’s most ‘wishlisted’ Airbnb, beating out capital city hot spots.

How would you like to wake up to this view?

How would you like to wake up to this view?Source: Supplied

The residence, complete with a spa, is hot property.

The residence, complete with a spa, is hot property.Source: Supplied

The short-term rental website revealed the property from each country that appeared on users’ booking wishlists the most frequently in 2017.

Topping the list for Australia, the Gold Coast residence is a “luxurious loft-style villa”, with room for 10 people, set on a sprawling four ha property and can be rented for $129 per night.

The Gold Coast Hinterland proved more popular than any other location in Australia.

The Gold Coast Hinterland proved more popular than any other location in Australia.Source: Supplied

There’s a “soothing, hot, outdoor spa” with open fireplace, a pool house pavilion with LG internet TV screen and entertaining area, and all the mod-cons of Wi-Fi, heating and air conditioning.

The host, former financial planner and Vanuatu expat, Kerri-Lea, is an equine enthusiast and there are horses on the property.

“This family plays polocrosse, has horses and stables with daily commitments,” according to the listing.

“The family home is the main house.”

The villa is described as “loft-style”.

The villa is described as “loft-style”.Source: Supplied

 

It comfortably accommodates 10 people.

It comfortably accommodates 10 people.Source: Supplied

Everything you need is there.

Everything you need is there.Source: Supplied

Guests are invited to join in functions that may be held on the property at the time of booking or can enjoy the privacy of their villa.

They can also visit nearby award-winning Mount Nathan Winery, the Gold Coast’s theme parks, between a six to 10-minute drive away, or drive to our famous beaches in less than 30 minutes.

It’s currently fully booked.

It’s currently fully booked.Source: Supplied

The villa had over 500 views in the last week and has scored a five-out-of-five star listing out of 179 reviews.

It’s listed in good company — the most popular listing in the UK was a Victorian castle, a sea cottage was Denmark’s ‘most wishlisted’, and a lakeside villa topped the travel bucket list in Switzerland.

The top gong comes as the Gold Coast Bulletin reported an Airbnb boom, tipped to contract the tight long-term rental market further as fewer properties are available.

You can book this Surfers Paradise penthouse on Airbnb for $550 per night.

You can book this Surfers Paradise penthouse on Airbnb for $550 per night.Source: Supplied

Some homeowners are facing the prospect of being able to fetch more money for a central Gold Coast property in a single night during the Commonwealth Games than what can be made in a week with a traditional permanent tenancy.

Originally Published: www.news.com.au

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