Queensland Rental Law Reforms: What Landlords Need to Know

Big changes are coming to Queensland’s rental laws!

As of the 30th of September 2024, Stage 2 of the rental law reforms came into effect. These changes significantly impact how rental properties are managed in Queensland. Whether you’re a seasoned landlord or new to property investment, it’s crucial to understand these updates.

Here’s a breakdown of the key changes:

1. Re-letting Costs:

Breaking a lease? The way re-letting costs are calculated for fixed-term agreements has changed. Here’s how it works now:

• Less than 25% of the lease expired: 4 weeks’ rent
• 25% to less than 50% expired: 3 weeks’ rent
• 50% to less than 75% expired: 2 weeks’ rent
• 75% or more expired: 1 week’s rent

Important: No extra charges can be added beyond these specified costs when a tenant breaks a lease.

2. Rent Payments:

• You must offer tenants at least two ways to pay rent, and one of these options cannot have more than typical bank transaction fees.
• If you use a third-party platform for rent collection, any fees charged to tenants must be reasonable.
• Any changes to payment methods must be clearly communicated to tenants in advance.

3. Utility Bills:

• Tenants must receive utility bills (like water and electricity) within four weeks of you receiving them. If you don’t provide these on time, tenants are not obligated to pay.
• Water charges must be based on actual meter readings, which need to be recorded in the entry and exit condition reports.

4. Rental Bonds:

• The maximum bond amount is now capped at four weeks’ rent, regardless of the rental price.
• Any bond amount exceeding this is a breach of the Act. You’ll need to refund any excess amounts for agreements renewed after the 30th of September 2024.
• When making or disputing bond claims, you must provide supporting evidence (condition reports, photos, receipts, or repair quotes) to the tenant within 14 days of the claim.

5. Information Sharing and False Claims:

• The Residential Tenancies Authority (RTA) can now share information with other government agencies to ensure everyone follows the rules.
• Providing false or misleading information to the RTA will result in penalties – this applies to both landlords and property managers.

6. Break Lease Agreements:

• If a tenant breaks their lease, the only cost you can claim is the re-letting fee (calculated based on the percentage of the lease term completed). You can still claim unpaid rent or damages separately.
• Important: For agreements signed before the 30th of September 2024, the old laws still apply. However, any renewals or new agreements after this date fall under the new legislation.

7. Changes to Bond Claim Process:

• There are new requirements for providing evidence when making or disputing a bond claim. This evidence must be given to the tenant within 14 days, or you may face penalties.

Need Help Navigating These Changes?

We understand that these new laws can be a lot to take in. If you have any questions or need assistance ensuring your rental properties comply with the latest legislation, please don’t hesitate to reach out to us.

Stay informed and ensure you’re following the updated regulations!