Queensland’s stage two rental reforms have officially commenced as of 6 June 2024, introducing a range of changes that landlords should be aware of, including restrictions on rental increases, domestic violence provisions, and mandatory training for real estate agents.
Under the new laws, landlords and agents are prohibited from accepting a tenant’s offer to pay rent above the advertised price, and rents can only be increased once every 12 months, regardless of whether there is a change of tenant or lessor. The tenancy agreement must also state the last date rent was increased.
Landlords who believe they will face undue financial hardship due to the rent increase restrictions can apply to the Queensland Civil and Administrative Tribunal for an order.
The reforms also limit the amount of rent that can be paid in advance, with landlords not allowed to accept an offer to pay more than two weeks’ rent for a periodic tenancy or one month for a general tenancy when the property is advertised. However, landlords can accept rent in advance greater than this limit during the tenancy if freely offered by the tenant.
The new laws also expand confidentiality requirements under the domestic and family violence provisions and allow providers to enter a property to install or repair a smoke alarm with just 24 hours’ notice.
A continuing professional development (CPD) regime will be introduced for all Queensland real estate agents and property managers, requiring them to complete CPD each year and provide a statement to the Office of Fair Trading confirming which requirements they have undertaken.
The Real Estate Institute of Queensland (REIQ) has had a mixed response to the legislative changes, with CEO Antonia Mercorella questioning “whether [the reforms] deliver on their intention to benefit tenants” and suggesting they may “create a significant administrative burden” on property managers.
On the other hand, Tenants Queensland has welcomed the reforms, with CEO Penny Carr stating they will “very much improve the experiences of renters across the state,” but adding that “more needs to be done to support struggling renters.”
The second part of the legislative changes, which will include limits on tenancy application information, fee-free rent payment options, extended entry notice periods, and a four-week limit for notifying tenants of bill charges, will commence at a later date.