Government addresses REIQ concerns over new tenancy laws Bill

On 23 May 2024, the Queensland Government passed the Residential Tenancies and Rooming Accommodation and Other Legislation Bill 2024 amending the Residential Tenancies and Rooming Accommodation Act 2008. Introducing stage 2 of the rental law reforms.

Stage 2 follows on from the Rental Reforms introduced in 2021 which included stronger protections for tenants experiencing domestic and family violence and significant changes in how tenancies can be terminated and can be found here. 

From 6 June 2024 certain laws came into effect and this article will explain the changes to rent.

Rent and Rent in advance

When a residential tenancy is advertised a lessor or property manager cannot accept, solicit or invite an offer from a tenant to pay rent above the advertised price.  Nor can an offer from a tenant to pay rent in advance be accepted if:-

1. For a fixed tenancy agreement, the amount offered is more than one months rent; or
2. For a rooming accommodation, periodic tenancy or a moveable dwelling, the amount offered is more than two weeks rent.

An amount that is greater than the statutory limit can be accepted by a property manager or lessor during a tenancy if offered by the tenant.  The offer cannot be invited or solicited.

Offers for rooming accommodation must now be advertised at a fixed amount.

Rent Increases

Regardless of whether there has been a change of tenant, the rent cannot be increased within 12 months after the date the rent was last increased.  The rent frequency limit now attaches to a property and not a tenant.

This law applies retrospectively, meaning that even if a rent increase was calculated prior to 6 June 2024, the new laws apply and a landlord will need to wait 12 months from the date of the increase before the rent can be increased again.

The tenancy agreement will start the date the rent was last increased for the property and a tenant will be able to request evidence, including the prior tenancy agreement or rental ledger, of the last rental increase. If a request is submitted the evidence of the day of the last rent increase must be provided within 14 days.  This requirement to provide evidence does not apply if the premises is purchased within 12 months of commencement and the owner or manger does not have the information regarding the date of the last rent increase.

If the lessor can demonstrate undue hardship because of the restrictions, a QCAT application can be made. QCAT can make an order directing the amount the increase can be raised.

Rooming accommodation must be advertised at a fixed price.  The 12 month restriction does not apply to public or a community housing.

Conclusion

This is an important change which Landlords and Property Managers should familiarise themselves with, particularly as these changes appear to apply regardless of whether improvements have been made to the property.

Should you require further advice on the new changes, we encourage you to contact our office for advice.