On May 23, 2024, the Queensland Government passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024. This new legislation introduces Stage 2 of the rental law reforms and mandates continuing professional development (CPD) for property agents in Queensland.

As investors, it’s crucial to understand these changes and their potential impacts on property investments.

Key Changes Under Stage 2 Rental Law Reforms 

Rent Increase Frequency:

The rent increase frequency limit will now be attached to the property instead of the tenancy. Rent cannot be increased within 12 months after the last increase date for the property, regardless of tenant or lessor changes.

• Rent increase provisions will apply retrospectively. A rent increase must be calculated from the date of the last increase, even if this date was before the laws commenced.
• Tenancy agreements must state the date of the last rent increase, and tenants can request evidence of this date.
• If a lessor believes they will suffer undue hardship due to the inability to increase rent within 12 months of the last increase, they can apply to QCAT for an order to increase the rent by a stated amount.

 Rent Offers and Advances:

 A lessor or property manager can no longer accept an offer from a tenant to pay rent above the advertised price.

• When a residential tenancy is advertised or offered, a lessor or property manager can no longer accept an offer from a tenant to pay rent in advance if the amount is more than:
• 2 weeks’ rent for a periodic tenancy or moveable dwelling. /1 month's rent for a general tenancy. However, a lessor or property manager can accept rent in advance greater than the statutory limit during a tenancy if offered by the tenant, but they cannot solicit or invite such an offer. 

Rooming Accommodation and Domestic Violence Provisions: 

• A new entry ground will be introduced for rooming accommodation for the installation, maintenance, or replacement of smoke alarms.
• Confidentiality requirements under domestic and family violence provisions will be expanded.

 Future Provisions: 

• New 'head of power' provisions will allow the Government to create regulations for a portable bond scheme, code of conduct, and processes for modifications in residential tenancies for accessibility, safety, and security.
• A prescribed form for tenancy applications will limit the information property managers can request from tenants.
• New verification of identity requirements will apply.
• Lessors must provide evidence to substantiate bond claims within 14 days.
• Removal of maximum bond limit thresholds and allowing tenants to seek bond refunds in certain circumstances.
• Bills for service charges and water consumption charges must be provided to the tenant within 4 weeks, unless related to the end of a tenancy, in which case an invoice based on reasonable use can be issued.
• Entry notice periods will extend from 24 to 48 hours.
• Entry will be limited to two times per week once a Form 12 Notice to Leave or Form 13 Notice of Intention to Leave is issued.
• New processes for attaching fixtures and making structural changes in residential properties.
• Reletting costs for breaking leases will need to be calculated according to a statutory formula.
• New processes for collecting, storing, and destroying personal information.

These reforms emphasize the importance of having your property managed by a professional agency to navigate these changes and protect your investment. At Define Property Agents your professional property management team ensures compliance with the new regulations, providing you peace of mind and maintaining the value and appeal of your property.

Why professional property management representation is so important:-

• Expertise: Understanding and implementing complex legislative changes.
• Compliance: Ensuring all documentation and procedures meet the latest legal requirements.
• Support: Providing guidance and support to navigate the evolving rental market landscape.

Define Property Agents are committed to staying ahead of these changes and ensuring that our investors properties are managed effectively and in compliance with the new laws.

Should you have any questions or need further clarification, please do not hesitate to reach out.