Queensland's New Rental Law Changes: What Property Investors Need to Know

As of June 6, significant changes to rental laws in Queensland have come into effect, designed to create greater transparency and fairness in the rental market. For property investors, staying informed about these changes is crucial to ensure compliance and to maintain positive relationships with tenants. Here’s a detailed overview of the new regulations and their implications.

1. Rent Bidding is Unlawful

One of the most notable changes is the prohibition of rent bidding. Previously, prospective tenants could offer to pay more than the advertised rent to secure a property, leading to competitive bidding that often drove prices up. This practice is now banned. Property investors must:

• Advertise rental properties at a fixed price.
• Refrain from accepting any rent offers above the advertised price.

This change aims to ensure transparency and fairness, making the rental process more straightforward and equitable for all parties involved.

2. Capped Rent in Advance Payments

The new laws also cap the amount of rent that can be paid in advance at the start of a tenancy:

• For general tenancies, the maximum is one month’s rent.
• For rooming accommodation and moveable dwellings, the maximum is two weeks’ rent.

Soliciting or accepting more than these amounts is a breach of legislation, with penalties applicable. This change protects tenants from the financial strain of large upfront costs, ensuring a more accessible rental market.

3. Regulated Rent Increase Frequency

The frequency of rent increases has also been regulated to provide more stability for tenants:

• Rent can now be increased no more than once every 12 months.
• This regulation applies to the premises, not individual tenancies. This means if a tenant moves out and a new tenant moves in, the 12-month period must still be adhered to from the last rent increase.

Tenancy agreements must now include the date of the last rent increase for the premises. Additionally, landlords are required to provide evidence of the last rent increase when requested in writing by a tenant. This measure ensures greater transparency and helps tenants better manage their finances.

4. Unlimited Rent Increase Amounts

While the frequency of rent increases is limited, there is no cap on the amount by which rent can be increased. However, if tenants believe that a rent increase is excessive, they are encouraged to visit the Residential Tenancies Authority (RTA) website for further information and potential recourse. This provision maintains a balance between protecting tenants from sudden hikes in rent frequency while allowing property owners to adjust rent based on market conditions.

Implications for Property Investors

These changes present a shift towards greater tenant protection and transparency in the rental market. For property investors, the key implications include:

• Compliance: Ensuring all rental properties are advertised at a fixed price and adhering to the new advance payment caps.
• Documentation: Keeping detailed records of rent increases and ensuring tenancy agreements reflect the date of the last increase.
• Communication: Being prepared to provide evidence of the last rent increase upon tenant request and maintaining open lines of communication to address tenant concerns.

Investors should also consider the broader impact on the rental market, such as potential shifts in tenant demand due to increased stability and transparency. Staying informed and proactive in adapting to these changes will be essential for maintaining successful and compliant rental operations in Queensland.

Working with our recommended Property Managers, you can be confident that your investment property is managed according to all laws and requirements as well as incredibly high standards of customer service, communication and asset protection.

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For more detailed information and guidance, property investors are encouraged to visit the RTA’s website and review the full legislative updates.