Stage 2 Rental Law Reforms commenced on 6 June 2024

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

Stage 2 Rental Law Reforms

The Stage 2 rental law reforms will commence in two parts.

The first part of the legislative changes commenced on 6 June 2024. These changes include the following:

• 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:
  • for a periodic tenancy, rooming accommodation or moveable dwelling, 2 weeks’ rent; or
  • for a general tenancy, 1 months’ rent.
• A lessor or property manager can, however, accept rent in advance greater than the statutory limit during a tenancy if offered by the tenant. A lessor or property manager cannot solicit or invite rent in advance greater than the statutory limit during a tenancy.
• The rent increase frequency limit will attach to the property instead of the tenancy. This means that rent must not be increased within 12 months after the date the rent was last increased for the property. This requirement applies regardless of whether there is a change of tenant or lessor in the 12-month period.
• The rent increase provisions will apply retrospectively. A rent increase must be calculated from the date of the last rent increase for the property, even if this date occurred before the laws commenced.
• The tenancy agreement will need to state the date rent was last increased for the property. A tenant will be able to request evidence of the last rent increase for the property, including a copy of the last tenant’s tenancy agreement or rental ledger (redacted). Transitional requirements apply for the sale of property within the first 12 months after the laws commence.
• If a lessor believes they would be caused undue hardship because they are not able to increase rent within 12 months of the last rent increase, the lessor can make an application to QCAT for an order. QCAT can make an order to increase rent by a stated amount.
• A new entry ground will be introduced for rooming accommodation for the installation, maintenance or replacement of smoke alarms.
• The confidentiality requirements under the domestic and family violence provisions will be expanded.
• New ‘head of power’ provisions will allow the Government to create a regulation in future to establish a portable bond scheme, code of conduct and a process for allowing modifications in residential tenancies for accessibility, safety and security.

Please see more in the REIQ’s media release here.

Some of the new laws carry heavy penalties of over $7,000 per infringement. To ensure that the new laws are being complied with, property managers may need to review processes associated with accepting rental applications, renewing tenancies and carrying out rent increases.

The REIQ has created new resources and practical training to support property managers with navigating these changes. A suite of new and updated forms is available in Realworks.

The REIQ has updated the New Tenancy Laws Toolkit with comprehensive practical guidance in relation to the above changes and using the new resources.

The second part of the legislative changes will commence at a later date upon proclamation, including:

• a prescribed form for tenancy applications and property managers will only be able to request limited information from a tenant in their application
• new verification of identity requirements will apply
• at least one fee-free rent payment method must be offered to the tenant
• lessors will need to provide evidence to substantiate bond claims within 14 days
• removal of maximum bond limit thresholds and a tenant will be permitted to seek a bond refund in some circumstances
• bills for service charges and water consumption charges must be provided to the tenant within 4 weeks (unless water consumption charges relate to the end of a tenancy, in which case the property manager can issue an invoice calculated on reasonable use)
• the entry notice periods shall be extended from 24 hours 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
• the parties will need to follow a new process for the attachment of fixtures and making structural changes in residential properties
• if a tenant breaks lease, reletting costs will need to be calculated in accordance with a statutory formula
• a new process will be introduced for collecting, storing and destroying personal information

CPD for Property Agents

This Bill introduces a framework for a continuing professional development (CPD) regime for all property agents in Queensland which will commence in June 2025.

Property agents will be required to complete CPD requirements each year. CPD requirements will be determined by the Office of Fair Trading (OFT), as advised by a stakeholder advisory panel including the REIQ. The requirements will then be published on the OFT’s website.

Property agents will need to provide a statement to the OFT confirming what CPD requirements have been undertaken each CPD year when renewing a real estate license or registration.

The CPD regime will apply to all licensed and registered residential sales agents, property managers, resident letting agents, buyer’s agents, auctioneers, commercial sales and leasing agents, commercial property managers and business brokers operating in Queensland.

The REIQ welcomes the introduction of a CPD regime for property agents in Queensland in line with other jurisdictions. The REIQ has consistently lobbied the Queensland Government for CPD for property agents in Queensland for over a decade.