As the Principal of Premium Residential, I want to ensure our valued clients are well-informed about the recent changes to Stage 2 Queensland’s new rental laws commenced on June 6, 2024.
On 23 May 2024, the Queensland Government passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024 (the Bill). This Bill introduces the Stage 2 rental law reforms and continuing professional development (CPD) for property agents in Queensland. These reforms are designed to foster a fairer and more transparent rental market for all parties involved. designed to foster a fairer and more transparent rental market for all parties involved.
Navigating Queensland's Evolving Rental Landscape: A Guide for Landlords and Tenants. Stage 2 Queensland’s New Rental Laws Commenced On June 6, 2024.
Stage 2 Queensland’s New Rental Laws Commenced On June 6, 2024
The Stage 2 rental law reforms will commence in two parts. The first part of the legislative changes commenced on 6 June 2024. These changes impact how we operate in the rental market and are designed to protect both landlords and tenants:
Rent Bidding Ban: The practice of accepting rent offers above the advertised price is no longer permitted. This ensures a level playing field for all prospective tenants and promotes fairness in the application process.
Limits on Advance Rent: We are now limited in the amount of rent we can request in advance. The maximum is two weeks’ rent for periodic tenancies, rooming accommodation, or movable dwellings. For general tenancies, it’s one month’s rent. This change aims to ease the financial burden on tenants at the start of their tenancy.
Rent Increase Frequency: Rent increases are now restricted to once every 12 months, regardless of whether there’s a change of tenant or lessor during that period. This gives tenants greater stability and predictability in their housing costs, allowing for better financial planning.
Retrospective Rent Increase Provisions: The rent increase provisions will apply retrospectively. A rent increase must be calculated from the date of the last rent increase for the property, even if this date occurred before the laws commenced. This ensures consistency and fairness in rent adjustments.
Disclosure of Last Rent Increase Date: The tenancy agreement will need to state the date rent was last increased for the property. A tenant can request evidence of the last rent increase for the property, including a copy of the previous tenant’s tenancy agreement or rental ledger (redacted). This promotes transparency and allows tenants to verify the legality of rent increases.
Undue Hardship Applications: If a lessor believes they would be caused undue hardship because they are not able to increase rent within 12 months of the last rent increase, the lessor can make an application to QCAT for an order. QCAT can make an order to increase rent by a stated amount. This provision provides a safety net for landlords who may face exceptional circumstances.
Entry for Smoke Alarm Installation, Maintenance, or Replacement: A new entry ground will be introduced for rooming accommodation for installing, maintaining, or replacing smoke alarms. This ensures the safety of tenants and compliance with fire safety regulations.
Expanded Confidentiality Requirements: The confidentiality requirements under the domestic and family violence provisions will be expanded. This is a critical step in protecting the privacy and safety of tenants who may be experiencing domestic and family violence.
Upcoming Changes on the Horizon
In addition to the changes already in effect, further reforms are on the horizon. These include:
Standardised Application Forms: A prescribed form for tenancy applications will be introduced, streamlining the application process and ensuring consistency across the board. This will make it easier for tenants and property managers to understand the required information and documentation, ensuring a smoother and more efficient application process.
Verification of Identity: New requirements for verifying tenant identity will be implemented to enhance security and protect all parties involved. This will help to prevent fraud and ensure that tenancy agreements are entered into with legitimate individuals, fostering trust and confidence in the rental process.
Fee-Free Rent Payments: We will be obligated to offer at least one fee-free rent payment method, making it easier and more affordable for tenants to meet their financial obligations. This is a positive step towards reducing the financial burden on renters and promoting financial inclusion.
Evidence for Bond Claims: Lessors will need to provide evidence to substantiate bond claims within 14 days. This ensures transparency and fairness in the bond claim process.
Removal of Maximum Bond Limit Thresholds: Tenants will be permitted to seek a bond refund in some circumstances, providing them with greater flexibility and control over their finances.
Timely Provision of Bills: Bills for service charges and water consumption charges must be provided to the tenant within 4 weeks. This ensures that tenants are aware of their financial obligations and can budget accordingly(unless water consumption charges relate to the end of a tenancy, in which case the property manager can issue an invoice calculated on reasonable use).
Extended Entry Notice Periods: The entry notice periods shall be extended from 24 to 48 hours, giving tenants more time to prepare for property inspections or maintenance.
Limited Entry After Notice to Leave: Entry will be limited to two times per week once a Form 12 Notice to Leave or Form 13 Notice of Intention to Leave is issued. This protects tenants’ privacy and minimizes disruption during the transition period.
New Process for Fixtures and Structural Changes: The parties will need to follow a new process for the attachment of fixtures and making structural changes in residential properties. This ensures that any modifications are done with the consent of both parties and in compliance with building regulations.
Statutory Formula for Reletting Costs: If a tenant breaks the lease, reletting costs must be calculated according to a statutory formula. This provides clarity and consistency in determining the financial responsibility of tenants who break their lease.
New Process for Personal Information: A new process will be introduced for collecting, storing, and destroying personal information. This is in line with privacy regulations and protects the personal information of tenants
Continuing Professional Development (CPD) for Property Agents
Starting in June 2025, all property agents in Queensland will be required to participate in annual continuing professional development (CPD) programs. This initiative ensures that industry professionals like myself and the team at Premium Residential remain up-to-date with the latest laws, regulations, and best practices. This benefits both landlords and tenants, as it ensures that we are equipped with the knowledge and skills to provide the highest level of service and expertise in an ever-changing regulatory environment.
Premium Residential is Your Trusted Partner
At Premium Residential, we are committed to staying ahead of the curve and ensuring our practices align with the latest regulations. We understand that these changes may raise questions or concerns, and we are here to provide you with the guidance and support you need. Our team is well-versed in the new legislation and can offer expert advice on navigating these changes effectively.
If you have any questions about Stage 2 Queensland’s New Rental Laws Commenced On June 6, 2024, reforms or any other aspect of property management, please don’t hesitate to contact Summer Finlay. We are dedicated to helping you navigate the complexities of the rental market and achieve your property goals. We pride ourselves on our transparent and client-focused approach and are confident that we can help you succeed in the rental market, even with these new regulations in place.
