Surfers Paradise 
The Queensland Government has made a significant announcement regarding the much-anticipated Stage 2 Rental Law Reforms. The remaining reforms will commence in two parts, with the first set taking effect on 30 September 2024, and the second on 1 May 2025. These changes are designed to improve transparency, fairness, and accountability in the rental market, impacting both tenants and landlords across the state.
Background on the Reforms
In May 2024, the Queensland Parliament passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024. The first phase of these changes came into effect on 6 June 2024, immediately following royal assent. Now, the Queensland Government has confirmed that the remaining changes will be rolled out in two parts.
What’s Changing on 30 September 2024?
From 30 September 2024, several important changes will come into effect, including:
- Fee-Free Rent Payment Method: Every tenant must be offered at least one fee-free rent payment method. Property managers and lessors will also be required to notify tenants of any costs associated with other rent payment methods.
- Bond Claims and Disputes: Lessors will now need to provide tenants with evidence supporting a bond claim or dispute resolution request within 14 days of making the claim or request.
- Maximum Bond Limit: The current bond limit thresholds will be removed. A maximum bond of four weeks’ rent will be applicable for every rental property, regardless of the weekly rent amount.
- Bond Refunds on Tenancy Renewal: In some cases, when a tenancy is renewed, a tenant may seek a bond refund if the bond amount held exceeds the allowable limit.
- Billing for Service Charges and Water Consumption: Bills must be provided to tenants within four weeks of receipt from the relevant supply authority. If not, the tenant will not be required to pay the service charge or water consumption.
- Partial Billing Period for Water Charges: Tenants are not required to pay for water consumption charges related to a partial billing period unless the property manager calculates the amount in accordance with the RTRA Act.
- Reletting Costs for Lease Breaks: If a tenant breaks a lease, the reletting costs must be calculated using a statutory formula.
What’s Changing on 1 May 2025?
Further changes are set to begin on 1 May 2025, aimed at increasing clarity and fairness for tenants and property managers:
- Prescribed Form for Tenancy Applications: Property managers will be required to use a standard form for tenancy applications.
- Restrictions on Information Requests: Property managers will only be permitted to request specific types of information from prospective tenants and will be prohibited from asking for certain sensitive information.
- Verification of Tenant Identity: New requirements will come into play regarding how property managers verify the identity of tenants.
- Disclosure of Financial Benefits: Property managers must disclose to tenants any financial benefits received from third-party rent payment methods.
- Extended Entry Notice Periods: The notice period for property entry will be extended from 24 hours to 48 hours.
- Limit on Property Entries: Entry to a property will be limited to two times per seven-day period once a Form 12 Notice to Leave or Form 13 Notice of Intention to Leave is issued.
- Requesting Structural Changes or Fixtures: A new process will be introduced for tenants to request the attachment of fixtures or structural changes in residential properties.
- Handling Personal Information: New processes for collecting, storing, and destroying personal information will be implemented.
Preparing for the Changes
The Real Estate Institute of Queensland (REIQ) is actively working to provide educational resources and training for property managers to ensure they are prepared for these new tenancy law changes. Make sure to stay updated by keeping an eye on the REIQ Journal and What’s On for the latest news. You can also subscribe to their updates to stay informed.
For more information, be sure to follow the updates as they become available. The new laws are designed to create a fairer and more transparent rental market in Queensland, and understanding these changes is crucial for both tenants and property managers.
