REIQ Supports Legislative Change to Enable Homeowners to Rent Rooms and Boost Housing Supply
The Real Estate Institute of Queensland (REIQ) is pleased to announce its support for the proposed legislative change aimed at lifting restrictions for homeowners who wish to rent out rooms within their property without jeopardizing their eligibility for concessions or grants. This change will be discussed at a public hearing next week.
REIQ CEO Antonia Mercorella explained that this initiative to amend eligibility requirements — allowing homeowners to rent out rooms within the first 12 months of purchase without penalty — was spearheaded by the REIQ.
"This is a win-win for both homeowners and renters in Queensland, and we are proud to have instigated this sensible change," Ms Mercorella said.
The change aligns with the REIQ’s overarching goal of increasing homeownership across the state, which was a key component of the organization’s election platform. It will have the dual benefit of helping to alleviate financial and rental accessibility pressures.
"By enabling homeowners to rent out spare rooms, this initiative not only helps first-time homebuyers manage their mortgage costs but also provides additional housing options for renters," Ms Mercorella stated.
The REIQ advocated for the removal of these restrictions as part of its election policy recommendations and is pleased to see the government adopting this approach, which will aid in addressing housing affordability and rental supply issues.
While acknowledging that this measure alone will not resolve all housing challenges, Ms Mercorella highlighted that it serves as an example of the innovative, incremental steps that, collectively, will have a significant impact on the housing market.
Each year, approximately 21,000 first-time homebuyers were previously prevented from leasing out part of their property in the first year. Even a modest 3-5% of these properties being rented could provide a substantial boost to the rental market.
"We’re pleased to see the State Government following through on their commitment to lift these restrictions and are optimistic about further housing reforms," Ms Mercorella added.
The REIQ also sees potential to expand this initiative further by unlocking additional rooms for rent in underutilized properties across Queensland. This could include properties owned by empty nesters or homeowners with more space than they need.
"We encourage the State Government to consider broadening this initiative to incentivize homeowners in such situations to rent out their unused rooms," Ms Mercorella suggested.
To ensure the success of this initiative, Ms Mercorella emphasized the importance of community education. Clear guidance is crucial for homeowners to understand the tax implications, insurance requirements, and contractual obligations involved in renting out a room.
"We recognize that homeowners may have concerns about potential capital gains tax and land tax implications. We urge the government to explore potential exemptions or other measures to alleviate these concerns and increase participation," she said.
The REIQ will present its submission on the Revenue Legislation Amendment Bill 2024 at the public hearing of the State Development, Infrastructure and Works Committee on Thursday, 23 January 2025.