Round-Up of QLD Rental Law Reforms: Understanding the Changes

Significant reforms have been implemented in Queensland’s rental landscape to balance tenants’ and landlords’ rights and responsibilities. Keeping up to date can be difficult as they are coming in stages. Therefore, I have compiled all the changes already in effect and the upcoming changes below.

IN EFFECT NOW:

Rent Increase Frequency Limit Applied to the Property

Previously, landlords could increase rent more frequently by starting a new tenancy agreement. Now, rent increase limits are applied to the property, not just the agreement. This means landlords can only increase rent once every 12 months, regardless of whether a new tenant moves in. This change helps prevent sudden and frequent rent hikes, providing tenants with more stability and preventing landlords from ending a tenancy just to increase the rent.

Banning All Forms of Rent Bidding

Rent bidding, where tenants offer to pay more than the advertised price to secure a property, is now prohibited. Landlords and property managers must not solicit or accept rental offers above the advertised price. This ban ensures a level playing field for all prospective tenants and helps keep advertised rents fair and consistent.

Prompt Passing of Utility Bills

Landlords and their agents must pass on utility bills to tenants promptly. Additionally, they must disclose any financial benefits they receive from the utility providers or any rent payment methods they offer. This transparency ensures tenants only pay for their actual usage and know of any commissions or incentives the landlord might receive.

Fee-Free Rent Payment Options

Tenants must be given at least one fee-free method to pay their rent, such as bank transfer or direct debit. Moreover, tenants now have more choice in how they apply for rental properties without being forced into using paid services. This change reduces unnecessary costs for tenants and makes the rental process more accessible.

Capping Rental Bonds and Substantiating Claims

Rental bonds are now capped to ensure they remain fair and reasonable. Landlords must also provide evidence to substantiate any claims against a tenant’s bond at the end of a tenancy. This means tenants are more likely to receive their bond back in full, provided they meet their obligations, and any deductions must be justified.

Minimum Housing Standards

One of the most significant reforms is the introduction of minimum housing standards to ensure all rental properties are safe, secure, and liveable. These standards include:

• Weatherproofing and Structural Soundness: Properties must be structurally sound, with no leaks or significant defects.
• Locks and Security: All external doors and windows must have functioning locks to ensure the tenant’s safety.
• Vermin and Pest Control: At the start of the tenancy, properties should be free from infestations, such as rodents or insects.
• Essential Services: Proper plumbing, drainage, heating, and ventilation systems must be in place and maintained.
• Privacy: Windows and doors should have coverings to ensure privacy.

These standards came into effect for new leases from September 2023 and will apply to all rental properties by September 2024. They ensure tenants have access to basic, decent living conditions.

Pets in Rental Properties

Tenants now have the right to keep pets, subject to certain conditions. While landlords can still refuse a pet request, they must provide a valid reason within prescribed grounds, such as unsuitable property type or allergy concerns. This change acknowledges the importance of pets to many tenants and promotes more pet-friendly rental options.

Domestic and Family Violence Protections

The reforms strengthen protections for tenants experiencing domestic or family violence. Affected tenants can end their tenancy with seven days’ notice without penalty and have their liability for damage caused by violence limited. This provision supports the safety and well-being of vulnerable tenants.

Ending Tenancies Fairly

The laws have clarified and expanded the legitimate grounds for landlords to end tenancies, removing “no grounds” evictions. Acceptable reasons now include the landlord or their family moving in, significant renovations, sale of the property, or change of use. This change provides tenants with greater security and predictability in their housing.

Continuing Professional Development for Property Managers

Property managers are now required to engage in continuing professional development (CPD). This ensures they stay updated on the latest laws and best practices, providing better service for landlords and tenants.

COMING SOON

Enhanced Notice for Property Entry

To better protect renters’ privacy, landlords and property managers must now provide at least 48 hours’ notice before entering the property for reasons other than general inspections, safety checks, or emergencies. This gives tenants adequate time to prepare for visits and maintains their right to quiet enjoyment of their home.

Secure Handling of Personal Information

A prescribed form for rental applications is being developed to standardise the information collected from prospective tenants. Landlords and agents must store personal information securely and destroy it when it’s no longer needed. This measure safeguards tenants’ personal data and reduces the risk of misuse or identity theft.

Limiting Re-Letting Costs

When tenants break a fixed-term lease early, they may be responsible for re-letting costs. The new laws limit these costs based on the time remaining on the lease. For example, if only a tiny portion of the lease is left, the tenant will pay a proportionally smaller fee. This change prevents tenants from facing excessive charges when they need to end a lease prematurely.

Future Developments

The Amendment Act also paves the way for further improvements:

• Rental Sector Code of Conduct: A code is being developed in consultation with the rental sector to establish clear expectations for all parties, promoting professionalism and fair dealing.
• Modifications Framework: A framework is being created to facilitate agreements between landlords and tenants for installing modifications related to safety, security, or accessibility. This will help tenants make necessary changes to the property, such as installing grab rails or security screens, with the landlord’s consent.

Queensland’s comprehensive rental law changes are designed to create a fairer, more transparent, and secure rental market. By understanding these reforms, tenants and landlords can better navigate their rights and responsibilities, contributing to a more positive rental experience for everyone involved.

For more information and a full rundown of all the changes, visit either the RTA or QLD Government webpage.