In recent years, the landscape of rental laws has undergone unprecedented changes, with both Stage 1 and Stage 2 of the rental reforms coming into effect. These reforms are designed to create a fairer and more transparent rental market for all parties involved. Let’s take a closer look at these significant changes and what they mean for landlords, tenants, and property managers.
A Recap of Stage 1 Reforms
Stage 1 of the rental reforms brought in several crucial laws, including:
– Domestic Violence Protections: Enabling families suffering from domestic violence to vacate safely.
– Stricter Smoke Alarm Legislation: Ensuring enhanced safety measures.
– Rent Increase Regulations: Modifying the procedures for increasing rents.
– Minimum Housing Standards: Establishing essential living conditions.
– Pet-Friendly Renting: Facilitating the inclusion of pets in rental properties.
– Fair Tenancy Endings: Promoting honest and equitable termination of tenancies.
Introducing Stage 2 Reforms
On May 23, 2024, the Queensland government passed the new Residential Tenancies and Rooming Accommodation Act and other associated legislation bills. This marked the advent of Stage 2 of the rental reforms, with some provisions taking immediate effect and others set for future implementation.
Immediate Changes Effective June 6, 2024
Without prior warning, industry bodies announced via email the immediate commencement of certain key changes under accession. These include:
– Rent Increase Frequency: Rent increases are now tied to the property rather than the tenancy. Rent cannot be increased within 12 months after the last increase, regardless of tenant or lessor changes.
– Tenancy Agreement Details: The agreement must state the date of the last rent increase. Tenants can request evidence of the last rent increase, including a redacted copy of the previous tenant’s agreement or a rental ledger.
– Hardship Applications: Lessors experiencing undue hardship from rent increase restrictions can apply to QCAT for an order to increase rent. Note that QCAT wait times in Brisbane CBD are currently 21 weeks.
– Advertising Restrictions: Owners cannot accept offers from prospective tenants to pay more than the advertised rent.
– Advance Rent Payments: Restrictions on accepting advance rent payments: two weeks for periodic tenancies or moveable dwellings, and one month for general tenancies. This applies to the initial payment only.
– Confidentiality Requirements: Enhanced confidentiality under domestic and family violence provisions.
– Future Regulatory Provisions: Establishing a framework for a portable bond scheme, a code of conduct, and modifications for accessibility, safety, and security.
Upcoming Changes
Additional changes, to be enacted at a later date, include:
– Prescribed Tenancy Application Forms: Limiting the information gathered about tenants.
– Verification of Identity Requirements: New requirements for verifying identities.
– Bond Claims: Lessors must provide evidence for bond claims within 14 days.
– Bond Limits: Capping bond amounts at four weeks’ rent.
– Utility Bills: Bills for water and other services must be provided to tenants within four weeks of issue.
– Extended Entry Notice Periods: Increasing notice periods from 24 to 48 hours.
– Limited Entry Times: Restricting entry to twice per week once a notice to leave or intention to leave has been issued.
– Attachment of Fixtures and Structural Changes: New processes for tenants making modifications.
– Re-Letting Costs: Calculating re-letting costs according to a statutory formula.
– Personal Information Handling: New legislation for collecting, storing, and destroying personal information.
Staying Ahead with Hicks Real Estate
As these reforms unfold, it is crucial to stay informed and have a proactive property management team to navigate the evolving regulatory environment. At Hicks Real Estate, our team is undergoing extensive training through industry advisors, the RTA, and the REIQ to ensure we are fully prepared to support our clients through these changes.
We encourage investors, clients, tenants, and the general public to reach out to Jodi at 0427 445 427 for guidance or to discuss any of these changes. Together, with the strong team at Hicks Real Estate, we will navigate these reforms confidently and efficiently.
Stay informed, stay proactive, and let us help you through these transformative times.
Jodi-lee Senior
Jodi is our Investor Support Manager. She is responsible for helping our clients build their property portfolios and get the maximum return on their investment. Talk to Jodi on 0427 445 427 about how you can improve your Property Portfolio
