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Brisbane rental market: Ray White tries to boost rents by 20%, according to leaked email

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The Australian Housing Agency has defended an email detailing how to increase rents by more than 20 per cent amid the state’s housing crisis.

Ray White’s branch in Brisbane’s West End has sent out a letter to landlords calling for a 17-20 per cent rent hike.

They said Queensland’s tight rental market meant tenants were unlikely to turn down an increase.

Ray White also said that homeowners can earn an extra $10,000 a year if they follow their advice.

It comes as people struggle to find a place to live across Australia with job vacancies

in Queensland it is less than 1 per cent, well below the healthy range of 2.6 to 3.5 per cent.

“Our managers reviewed all lease renewals and recommended an average rent increase of 17 percent for leases renewed in October and November of this year,” the email said. trans Guardian.

“As we plan to renew our leases in December, the average lease renewal recommendation is over 20 percent. That could be up to $10,000 a year in additional rental income.”

The email also said that renters have recently been “agreeable” to price increases because when they “look at what’s available in the rental market, they realize” it’s “fair and reasonable.”

Ray White’s office said it mainly targeted the Brisbane suburbs of West End, High Gate, South Bank and the CBD.

They claimed that two-bedroom apartments in these areas cost between $480 and $520 a week, while they can extract between $675 and $850 from a tenant.

“If you’re not achieving those rental rates (at a minimum), you have to ask why?”

Antonia Mercarella, chief executive of the Real Estate Institute of Queensland, admitted her state’s rental market was in dire straits.

“Across Brisbane, rental listings have fallen by 61.5 per cent since the start of the pandemic, putting extreme pressure on supply,” she said.

“As a result, we are seeing much higher prices when properties are advertised and put on the rental market.

“There is no doubt that the market forces of the past two years have been unusual for a number of reasons and have had a significant impact on rental values, resulting in a tough market for tenants.”

The entire state is experiencing a housing crisis. News.com.au previously reported two single mothers from cities outside of Brisbanewho were threatened with homelessness, because their lease term was expiring, and they were no longer accepted anywhere.

In one case, the mother turned to 20 different locations that were all rejected.

Ray White’s chief economist Nerida Conisby defended the email leak, saying the market was perfect for real estate investors.

“Brisbane currently has a shortage of homes for those who want to live here,” she said in a statement to news.com.au.

“This makes it difficult for tenants, but makes it a good place to invest. While hot house price growth is unlikely to resume in the near future, yields are rising as rents rise.”

She said house prices in Brisbane were up 39 per cent and rents were still catching up at just 34 per cent.

Ray White would not comment on the email.

Originally published as ‘Not enough houses’: Ray White letting agency is trying to increase rents by 20 per cent

https://www.heraldsun.com.au/business/dont-have-enough-homes-rental-agency-ray-white-tries-to-increase-rent-by-20-per-cent/news-story/e4ff2ab4807fffe3b50b90fe81069156

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