The Brisbane City Council has warned property owners who list their homes for short-term accommodation like Airbnb will face a 50% rates hike.
The recent surge in short-term rentals has left the Brisbane long-term rental market in crisis with tenants struggling to find a home.
AirDNA, a short-term accommodation data analysis company, estimates around 3,600 Brisbane homes are currently listed on sites like Airbnb across the greater Brisbane area.
Brisbane’s rental vacancy rate for May was 0.6%.
According to the latest report by national data-driven buyer’s agency InvestorKit, this low vacancy rate has led to Brisbane’s average rental price increasing by 11.9% over the past year.
Brisbane Lord Mayor Adrian Schrinner told ABC radio this morning it was clear “thousands” of homes had been removed from the long-term rental market.
“What we see is renters are being affected with rents going up significantly, and then those that are wanting to get a rental property are having real difficulty at the moment getting access to anything,” the Lord Mayor explained.
“If owners had these properties in the market for short term, overnight stays - that is their choice, but what they’ll be facing now is a 50% increase in their rates.
“We don’t want anyone to pay that, we want them to put those properties back into the rental market for long-term use.”
For a non-owner occupied residential property in Brisbane, the average annual rates bill for 2021-22 is $1,039. This means owners who choose to continue to list their properties as short-term accommodation would be hit with an average rates bill of $1,558.50.
However, with the Lord Mayor handing down the LNP administration’s $4 billion budget later today, rates are predicted to rise, likely increasing those fees.
Property owners who lease out a granny flat, single room, or shared accommodation will not be affected by this rates hike.
Noosa Shire Council already cracking down on short-term accommodation
Earlier this year, the Noosa Shire Council introduced a $950 registration fee for short-term accommodation properties.
“We’ve had hundreds of complaints in the last 12 months about these things popping up,” the Lord Mayor said.
“As you can imagine, a standard residential area gets turned into a mini hotel overnight and different tenants coming and going every weekend, for example these are things the people of Brisbane are letting us know already.”
Brisbane City Council reveals rates rise 2022-23
Mr Schrinner announced the council budget would include a 4.93% rates hike as the city struggles with the lingering effects of COVID-19 and the recent floods.
This is the biggest hike the city has seen since 2010-11.
The Lord Mayor explained the budget was “sensible and affordable” as the rate rise still sits below Brisbane’s inflation rate of 6%.
“Brisbane already has the cheapest residential rates in south-east Queensland thanks to our years of sensible financial management,” Mr Schrinner said.
For those owners who will continue to list their properties as short-term stays, a new “transitory accommodation” rates category will come into effect from July 1.
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