The recent rental law reforms passed in May earlier this year are set to shake things up, all in an attempt to make the rental market fairer for tenants during the ongoing housing crisis. Whether you're a tenant or a landlord, it's crucial to stay in the loop with these significant changes, so let's dive into some of the major things you need to know.
With these reforms, several key changes to rent payments and increases have taken effect from June 6. Property managers and landlords are now prohibited from accepting rent offers higher than the advertised price, with landlords also no longer being able to request more than two weeks' rent in advance for periodic agreements or more than one month for fixed-term agreements, even if tenants offer to pay more. This rule ensures tenants aren't burdened with excessive upfront costs.
Rent increases are also now limited to once every 12 months, applying to the property rather than the individual tenancy, maintaining a consistent increase timeline regardless of tenant turnover. The date of the last rent increase must also be included in the written agreement, but certain exemptions allow landlords to request more frequent rent increases, particularly if a landlord faces undue hardship and applies to the Queensland Civil and Administrative Tribunal (QCAT) for permission. In such cases, the tribunal will consider the tenant's ability to pay and overall affordability.
Tenants now also have the right to request written evidence of the last rent increase, which landlords must provide within 14 days. This requirement does not apply to newly purchased properties if the property was bought within 12 months of the start of a new lease and the property manager or owner does not have information about the date the rent was last increased. Additionally, landlords and property managers will need to offer at least two ways for tenants to pay rent, one of which must not incur more than usual bank fees, providing tenants with more flexibility and convenience. This last change has not come into effect yet but will come into effect at a future date which is yet to be advised.
In addition to changes in rent payments, the rental bond processes are also getting an update, but will not come into effect until a future date. Landlords will not be able to request more than four weeks' rent as a bond. If tenants have previously paid more than this, there will be provisions made in certain circumstance for tenants to request a refund of the excess amount. When making a bond claim or disputing a bond, landlords will also need to provide supporting evidence to the tenant within 14 days, ensuring bond disputes are handled fairly and transparently. One change that has already taken effect since June 6 is the process for refunding bonds involving commercial bond loan suppliers. This process has now been updated to streamline and clarify procedures, making the entire process smoother for everyone involved.
The new laws also address other rental expenses to ensure clarity and fairness, all of which will come into effect at a future to be advised date. The cost of re-letting a property will soon be calculated based on the remaining time on the tenancy agreement. This change ensures that fees are proportional to the time left on the lease. Additionally, tenants will need to receive utility bills within four weeks of the billing period. If landlords fail to provide these on time without a reasonable excuse, tenants will not be required to pay.
The new rental laws will also bring changes to the entry notice period and frequency, with dates for the changes to be advised. The minimum entry notice period will increase from 24 hours to 48 hours, giving tenants more time to prepare for a valuation or maintenance visit. New limits will also apply to how often landlords or property managers can enter the property after a notice to end the tenancy has been issued. These changes aim to provide tenants with more privacy and less disruption during their tenancy.
The rental application process is also being streamlined with the introduction of a new standardised rental application form that must be used when applying for a rental property, however, these changes have not taken effect yet and will come into effect upon a future date. Managing parties will be required to provide prospective tenants with an option to lodge this form in ways other than using third-party platforms. Additionally, new guidelines will outline what information can be requested from prospective tenants during the application process.
Furthermore, new privacy protections will limit the personal information that managing parties can request and collect from prospective tenants. These changes aim to safeguard tenants' personal information and ensure it is handled appropriately during the rental application process, contributing to a more secure and respectful rental experience for everyone involved.
To ensure compliance with the new laws, the Residential Tenancies Authority (RTA) have now been granted with greater enforcement powers, with new offence provisions allowing the RTA to take more robust actions to uphold the Act.
These new rental laws are designed to make renting fairer and more transparent for both tenants and landlords in Queensland. Staying informed about these changes will help you navigate your rights and responsibilities more effectively.
For more information and assistance, contact our expert property management team – we’re here to help you every step of the way.