The Queensland Government implemented a number of new rental laws recently, which impact the rights and responsibilities of property investors with real estate assets in the Sunshine State.

It’s imperative that all investors understand the relevant tenancy legislation in their state or territory to ensure their property or portfolio can be managed at its optimal level by professional property managers.

In fact, according to the 2024 PIPA Annual Investor Sentiment Survey, about 65% of investors believe they have reasonable knowledge about tenancy regulations, however, about 25% also say they rely on communications from their property managers to keep informed on legislation changes.

The Queensland Government has been busy when it comes to rental reforms, with three separate new laws coming into effect this year alone.

Below is helpful summary of some of the key legislative changes that every property investor needs to know. 

New laws from 30 September 2024

• Reletting costs – are calculated on the remaining time on the tenancy or rooming agreement and whether the fixed term agreement is greater or less than three years. For agreements up to three years it’s the lower amount of the specified reletting costs or the rent until a new tenant/resident moves in.

  This means that if a tenant breaks the lease the penalty fees are now capped and tenants can only be charged the lesser of either the reletting costs as per the below table or the rent until we find a new tenant. The reletting costs include advertising costs.

• Utility bills – a tenant must receive utility bills within a four-week timeframe, otherwise the tenant does not need to pay. There are also changes to how water charges are calculated and can be charged when a tenancy begins or ends during a billing period.

• Maximum bond – no more than four weeks rent can be requested by a managing party.
• Evidence for bond claims – when making a bond claim or disputing a bond, the property manager/owner must provide the tenant with supporting evidence within 14 days of lodging a claim or dispute.

New laws from 1 September 2024 (for all tenancies)

• Minimum housing standards specify that rental properties must:
  • be weatherproof and structurally sound
  • be in good repair, with fixtures and fittings (such as electrical appliances) that are not likely to cause injury through normal use
  • have functioning locks or latches on all external doors and windows that can be reached without a ladder
  • be free from vermin, damp and mould (this does not include cases where the vermin, damp or mould has been caused by the tenant)
  • include curtains or other window coverings, which provide privacy in rooms where the tenant might reasonably expect it, such as bedrooms
  • have adequate plumbing and drainage and be connected to hot and cold water that is suitable for drinking
  • provide privacy in bathroom areas and have flushable toilets connected to a sewer, septic tank or other waste disposal system
  • have a functioning cook-top, if a kitchen is provided
  • include the necessary fixtures for a functional laundry, such as tap fixtures and adequate plumbing, if laundry facilities are provided. The laundry does not have to include a washing machine or other white goods, as these may be provided by the tenant.

New laws from 6 June 2024

• Rent bidding– rent bidding or accepting rent offers higher than the advertised price, are banned.

• Maximum rent in advance – a property manager/owner cannot, at the start of a new tenancy, solicit, accept or invite a tenant to pay more rent in advance that exceeds two weeks for a periodic tenancy agreement, even if a prospective tenant makes an offer to pay more than the amount prescribed in the legislation.
• Rent increases – are limited to 12 months and are attached to the property instead of the tenancy. Written agreements must state the date of the last rent increase.
• Evidence of last increase – The date of the last rent increase must be included in the tenancy agreement. Tenants have the right to request written proof of the last rent increase during the tenancy, and the property manager or owner must provide this information within 14 days.
• Undue hardship – a managing party may apply to Queensland Civil and Administrative Tribunal (QCAT) for permission to increase rent within 12 months due to undue hardship. The tribunal must have regard to any representation made by the tenant in relation to affordability and ability to continue to pay rent.