Stage 2 Rental Law Reforms
The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024 was passed in Parliament on 23 May 2024.
What's coming?
Provisions Commencing on Assent
Rent
You will be prohibited from accepting:
● rent above the listing price
● at the start of the tenancy - rent in advance more than 1 month rent (for general tenancies) 2 weeks rent (periodic/moveable dwellings).
During a tenancy - you can accept rent in advance that is greater than statutory limits, however, you cannot solicit or or invite this payment
● Tenants must be offered at least one fee-free method to pay rent
● Lessor/agent must disclose any benefit they may receive if the tenant pays rent a certain way
Rent Increases
o Rent increase frequency limit of 12 months – laws commenced 1 July 2023
o Rent increase frequency limit of 12 months will attach to the property. Even if the property was previously owned by someone else.
o Tenancy agreement must include the date the rent was last increased.
o A tenant can request evidence which may include a copy of the previous tenancy agreement, a written rent increase notice or a copy of the rental ledger for the premises. The lessor must provide the evidence within 14 days. Any personal information must be de-identified.
o A lessor can apply to QCAT to increase rent during a 12-month period if they believe they will suffer undue hardship. QCAT will determine the amount and can take tenant’s views into account.
o New transitional provisions will relate to the sale of property Updates will be made to:
REIQ Contract for Houses and Residential Land
REIQ Contract for Residential Lots in Community Titles Scheme
The seller will have disclosure requirements if the property is let within 12 months before the Contract Date.
Some lessors are exempt from the evidence requirements, including:
● the lessor receives funding for the premises under the Housing Act 2003 if the amount of rent payable for the premises is determined by household income (examples— a community housing provider, a specialist homelessness service); or
● the lessor receives funding for the premises that is the subject of a funding declaration under the Community Services Act 2007 if the amount of rent payable for the premises is determined by household income; or
● the lessor is the chief executive of the housing department, acting on behalf of the State; or
● the lessor is the State and the tenant is an officer or employee of the State; or
● the lessor is the replacement lessor under a community housing provider tenancy agreement; or
● the lessor is prescribed by regulation to be an exempt lessor
Head of powers
The Government has created a head of power to allow a Regulation to later be created for:
● Portable bond scheme (expires in 2 years)
● Modifications for accessibility, safety & security
● Code of conduct
Provisions commencing on proclamation (later date)
Tenancy Application Form and Information
● Introduction of a prescribed tenancy application form
● Form will only include the following information:
○ the name and contact details of the prospective tenant
○ details of any previous residential tenancy agreements or rooming accommodation agreements
○ the prospective tenant’s current employment
○ details about the prospective tenant’s income
○ referees for the prospective tenant
○ the intended term of the tenancy
● This does not include pet information, approved occupants, vehicles etc.
● The lessor cannot request a history in relation to rental bonds, including any claim on a rental bond or bank account statements
● Personal information must be stored securely. Information about an applicant must be destroyed within 3 months and information about a tenant must be destroyed within 7 years of the tenancy ending.
Bonds
● Maximum bond limit of 4 weeks’ rent, regardless of weekly rent amount
● After the changes commence, a tenant can request a bond refund if the RTA holds a bond for that tenant of more than 4 weeks’ rent
● A lessor’s claim on a bond must be substantiated within a strict time limit – the lessor has to provide evidence to the tenant within 14 days of making a bond claim or dispute resolution request for payment of bond
● Provisions to allow for the use of third-party commercial bond products
Fees
● Capping re-letting costs based on time remaining of fixed-term tenancy
● Service and water consumption charges must be provided to a tenant within
28 days of receipt from the service provider – otherwise tenant is not required
to pay the amount for the service or water
● At the end of a tenancy – the water usage can be calculated and the property
manager can issue an invoice to the tenant
Entry
● Changing entry notice periods from 24 to 48 hours
● Frequency limit for entry – if a NTL or NITL is issued, entry will be limited to no
more than 2 times per week
● New entry ground for smoke alarm compliance
Alterations for fixtures to be attached or structural changes
New process for the lessor to approve or refuse a tenant's request for fixtures to be attached or structural alterations to the property:
tenant may give a request in an approved form
the lessor must decide on the request within 28 days of receipt
lessor may agree, or refuse the request
if the request is agreed to—may give the agreement subject to conditions
the lessor must not act unreasonably in refusing the request
You can find the Amendment Bill that was passed on May 2024 here.
Update today: 14th June 2024, you can find the latest Rent Change Fact Sheet here.
For questions, you may contact Coastal Edge Real Estate's Property Manager,
Cara Pratt, at 0407 644 300.
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