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Queenslands Stage 2 Rental Reforms

Written by Jacinta McDonald | Jun 17, 2024 12:29:29 AM

The Queensland Government has initiated the Stage 2 Rental Law Reforms, which will unfold in two phases. The first set of changes took effect on June 6, 2024, bringing significant updates to rental regulations. Here’s what you need to know about these new laws and how they might impact you as a property owner or tenant.

Key Changes to Rental Regulations

1. Restrictions on Rent Offers:
- Property managers and lessors can no longer accept rental offers above the advertised price.
- For advertised or offered residential tenancies, rent in advance is capped at two weeks for periodic tenancies, rooming accommodations, or moveable dwellings, and one month for general tenancies.

2. Rent Increase Frequency:
- The limit on rent increases will now apply to the property, not the tenancy. This means rent cannot be increased within 12 months of the last increase for that property, regardless of tenant or owner changes during that period.
- Rent increase rules are retrospective, meaning any increases must be calculated from the last rent increase date, even if it was before these laws commenced.

3. Documentation and Evidence:
- 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.

4. Hardship Applications:
- Lessors experiencing undue hardship from not being able to increase rent within 12 months can apply to QCAT for an exception.

5. Rooming Accommodations and Safety:
- A new entry ground for rooming accommodations allows access for the installation, maintenance, or replacement of smoke alarms.

6. Confidentiality and Future Regulations:
- Expanded confidentiality requirements under domestic and family violence provisions.
- New provisions empower the government to establish future regulations for a portable bond scheme, code of conduct, and processes for property modifications for accessibility, safety, and security.

Insights from REIQ 

The Real Estate Institute of Queensland (REIQ) has voiced concerns about these reforms, despite acknowledging some positive changes. 

Wins for the REIQ:
- The amendment allows tenants to be billed for estimated water usage at the end of their tenancy, avoiding property owners covering excessive water bills.
- Upfront rent payment options have been retained, preventing the need for manual monitoring of payments.
- Storage timeframes for renter’s personal information have been extended from three years to seven years.
- Property modifications in apartment and unit complexes now require body corporate approval, ensuring structural changes are managed properly.
- Introduction of mandatory Continuing Professional Development (CPD) for all real estate professionals to maintain high standards.

Ongoing Concerns:
- Applying a maximum rental bond limit of four weeks' rent to all general tenancies, regardless of the rent amount, may lead to administrative burdens from refund requests.
- Retrospective rent increase frequency limits could lead to rental inflation as lessors try to safeguard against uncertainty.
- Some changes, like the new reletting fee formulation, may result in higher costs for tenants without providing significant relief.

REIQ CEO Antonia Mercorella emphasizes the need for more stakeholder consultation to ensure legislation is practical and fair, critiquing the government’s approach as rushed and insufficiently consultative.

Final Thoughts

While these reforms aim to protect tenants and create a fairer rental market, they also introduce new challenges for property owners and managers. Staying informed and prepared for these changes is crucial for navigating the evolving rental landscape in Queensland. For personalized advice and assistance, get in contact with our property management specialists. They can help you to navigate the changes as well as the upcoming changes expected in the future.