PropertyBuzz, your daily dose of property news.
Queensland passes its property law overhaul, AirBnb sets its sights on long-term rentals, and what can commercial property owners do to minimize the biggest risk to their balance sheets?
Welcome to Property Buzz! I’m Juliet Helmke.
Today is Friday, 27 October.
Our top headline today examines Queensland’s most Significant Property Law Changes in Half a Century
– Queensland’s new Property Law Bill 2023 has been passed, replacing legislation from 1974. Perhaps most importantly, It introduces a mandatory seller’s disclosure regime, shifting from a “buyer beware” approach to proactive seller disclosure.
– The bill also introduces changes to commercial leases, including new standard lease terms and addresses areas of uncertainty. The bill includes an updated legal framework for electronic property transactions, modernizes some lease provisions, clarifies the powers of mortgagees, and improves provisions for neighboring land issues.
The Real Estate Institute of Queensland (REIQ) , while largely welcoming the new law, has expressed concerns about some provisions, including what it considers to be impractical requirements for disclosure statements at auctions, ambiguity around buyer termination rights, and the reintroduction of Community Management Statement disclosure.
In other news
– New York City’s Short-Term Rental Registration Law requires short-term rental hosts to register with the Mayor’s Office of Special Enforcement and limits guest stays to two people for less than 30 days.
– Airbnb CEO, Brian Chesky, sees the new regulations as a chance for the company to expand into the long-term rental market, which he describes as a “huge opportunity.”
– In Australia, increased regulation of the short-term rental market in some jurisdictions, including a reduction in the number of days properties can be leased per year, is also impacting Airbnb’s operations.
– Despite these challenges, a recent Queensland government inquiry found that short-term rental properties have a “limited impact on rental affordability,” suggesting that laws might not have the flow on effects that legislators hope.
A report by creditorwatch identifies the biggest risk for commercial landlords is tenant insolvency, which can lead to loss of rental income.
– To mitigate this risk, the firm recommends landlords should conduct thorough background and credit checks on prospective tenants, ensure leases contain clauses for insolvency events, and put security guarantees in place.
– Diversifying tenants and considering third-party interests, such as banks and franchisors, can also help reduce the impact of a single tenant’s insolvency on a landlord’s portfolio.
– Despite these risks, the Australian commercial property sector remains one of the lowest risk sectors globally for investors, due to strong population growth and recovering business confidence.
That’s Property Buzz for today.
See you again tomorrow, 28 October, for your daily dose of Property Buzz.