Understanding the New Stage 2 Rental Law Reforms in Queensland
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 a continuing professional development (CPD) regime for property agents in Queensland.
Stage 2 Rental Law Reforms
The Stage 2 rental law reforms will commence in two parts. The first part took effect on 6 June 2024, introducing several significant changes:
Key Changes Effective from 6 June 2024:
1. Rent Bidding and Advance Payment Limits:
Ban on Rent Bidding: Lessors and property managers can no longer accept offers from tenants to pay rent above the advertised price. This practice is now prohibited to create a fairer rental market.
Advance Payment Limits: There are now caps on the amount of rent that can be paid in advance:
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For periodic tenancies, rooming accommodations, or moveable dwellings, the limit is 2 weeks' rent.
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For general tenancies, the limit is 1 month’s rent.
Tenant-Initiated Advance Payments: During a tenancy, if a tenant offers to pay rent in advance beyond these limits, lessors and property managers may accept it but cannot solicit or invite such payments.
2. Rent Increase Frequency:
Property-Based Limit: Rent increases are now tied to the property rather than the individual tenancy. No rent increase can occur within 12 months of the last increase, irrespective of tenant or landlord changes. This applies retrospectively.
Documentation Requirements: Tenancy agreements must state the date of the last rent increase. Tenants can request evidence of the last rent increase, such as a copy of the previous tenant’s agreement or rental ledger (redacted).
Hardship Applications: Lessors can apply to QCAT for a rent increase if they believe they will face undue hardship due to the 12-month limit.
3. Extended Entry Notice Periods:
Notice periods for property entry have been extended from 24 hours to 48 hours, providing tenants more time to prepare and ensuring greater privacy.
4. Other Immediate Changes:
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A new entry ground for rooming accommodations for the installation, maintenance, or replacement of smoke alarms.
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Expanded confidentiality requirements under the domestic and family violence provisions.
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New provisions allow the Government to create regulations for a portable bond scheme, code of conduct, and processes for modifications related to accessibility, safety, and security.
Phase 2: Changes to be Implemented Upon Proclamation
The second part of the reforms will be introduced at a later date and will include:
1. Rental Applications and Verification of Identity:
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A prescribed form for tenancy applications will be introduced, limiting the information property managers can request.
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New verification of identity requirements will be implemented.
2. Rent Payment and Utility Bills:
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Lessors must offer at least one fee-free rent payment method.
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Utility bills must be provided to tenants within 4 weeks, except for charges related to the end of a tenancy, which can be billed based on reasonable use.
3. Modifications and Reletting Costs:
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A new process for agreeing on minor modifications will be established.
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Reletting costs for tenants breaking their lease will be calculated using a statutory formula.
4. Personal Information Management:
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New processes for the collection, storage, and destruction of personal information will be introduced.
5. Additional Entry and Notice Requirements:
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Entry notice periods will extend from 24 to 48 hours.
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Entry will be limited to two times per week after a Form 12 Notice to Leave or Form 13 Notice of Intention to Leave is issued.
CPD for Property Agents
The Bill also introduces a CPD regime for property agents, starting in June 2025:
CPD Requirements:
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Property agents will need to complete CPD requirements each year as determined by the Office of Fair Trading (OFT) and advised by a stakeholder advisory panel, including the REIQ.
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These requirements will be published on the OFT’s website.
Licensing and Registration:
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When renewing a real estate license or registration, agents must provide a statement to the OFT confirming the CPD requirements undertaken each year.
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The CPD regime will apply to all licensed and registered residential sales agents, property managers, resident letting agents, buyer’s agents, auctioneers, commercial sales and leasing agents, commercial property managers, and business brokers operating in Queensland.
Need Assistance with the New Reforms?
Navigating these new rental law reforms can be challenging. For expert guidance and support, contact Champions in Real Estate.
Our knowledgeable team is here to help you manage your property effectively and ensure compliance with the latest legislative changes.
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