On May 23, 2024, the Queensland Government passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024, marking the commencement of Stage 2 rental law reforms and mandatory continuing professional development (CPD) for property agents in Queensland. The first phase of these changes took effect on June 6, 2024.
Key Changes Effective June 6, 2024
As investors, understanding these changes is crucial for managing your property investments effectively:
- Rent Offers: Property managers and landlords can no longer accept offers from tenants to pay rent above the advertised price. Additionally, for periodic tenancies, rooming accommodations, or moveable dwellings, they cannot accept more than 2 weeks’ rent in advance. For general tenancies, the limit is 1 month’s rent in advance. However, during a tenancy, tenants can voluntarily offer to pay rent in advance beyond these limits.
- Rent Increase Frequency: Rent increase limits will now be tied to the property, not the tenancy. This means rent cannot be increased within 12 months of the last increase, regardless of tenant or landlord changes. This provision applies retrospectively, requiring documentation of the last rent increase date in tenancy agreements. Tenants can request evidence of the last rent increase, such as a redacted rental ledger.
- Hardship Applications: Landlords facing undue hardship due to the 12-month rent increase restriction can apply to QCAT for a rent increase order.
- Rooming Accommodation: New entry grounds will allow for the installation, maintenance, or replacement of smoke alarms.
- Confidentiality and Safety: Confidentiality requirements under domestic and family violence provisions will be expanded. Future regulations may establish a portable bond scheme, a code of conduct, and processes for making modifications to tenancies for accessibility, safety, and security.
These changes are backed by significant penalties for non-compliance, with fines exceeding $7,000 per infringement. Property managers must review and possibly update their processes for accepting rental applications, renewing tenancies, and implementing rent increases to comply with the new laws.
The REIQ has developed resources and practical training to support property managers in navigating these changes. New and updated forms are available in Realworks, and the New Tenancy Laws Toolkit has been updated with comprehensive guidance.
Upcoming Changes to be Announced
Further legislative changes will commence upon proclamation, including:
- A prescribed form for tenancy applications with restricted information requests from property managers.
- New verification of identity requirements.
- At least one fee-free rent payment method must be offered to the tenant.
- Evidence requirements for substantiating bond claims within 14 days.
- Removal of maximum bond limit thresholds, allowing tenants to seek bond refunds in certain circumstances.
- Bills for service and water consumption charges must be issued within 4 weeks, except at the end of tenancies.
- Entry notice periods will extend from 24 to 48 hours, and entry will be limited to twice per week after a Notice to Leave is issued.
- New processes for attaching fixtures and making structural changes in residential properties.
- A statutory formula will determine reletting costs if a tenant breaks the lease.
- New procedures for collecting, storing, and destroying personal information.
Navigating the Changes
As these reforms take effect, staying informed and proactive is essential. The question remains: has the government fully considered the implications for all stakeholders, including landlords and prospective tenants? We encourage our investors to stay engaged and reach out for further guidance as we navigate these changes together.
Reach out to us for more information and assistance in adapting to these new regulations. Together, we can ensure your investments continue to thrive in the evolving rental market landscape.
