Starting September 30, 2024, new rental regulations will take effect in Queensland, building on the changes announced earlier in June. These laws aim to enhance market transparency and protect tenants. Here’s a quick rundown of the key changes:
Reletting Fees for Early Lease Termination
When tenants vacate a property before their lease ends, reletting costs are now structured as follows:
- Less than 25% of term completed: 4 weeks’ rent
- 25% to less than 50% completed: 3 weeks’ rent
- 50% to less than 75% completed: 2 weeks’ rent
- 75% or more completed: 1 week’s rent
Water Consumption & Services
Owners must forward invoices (eg water, electricity etc) within 30 days of receipt.
Maximum Bond Limit
Bonds are capped at 4 weeks’ rent. Tenants who have paid more can apply directly to the RTA for a refund.
Bond Claims
All bond claims must be accompanied by evidence and provided to tenants within 14 days of vacate.
Two Rent Payment Options
It’s mandatory for tenancy agreements to provide tenants with two rent payment options, one of which must be fee-free.
Key Takeaways for Property Investors
These regulations introduce a shift towards more protections for tenants and greater transparency in the rental market. Property investors should note these key implications::
Compliance:
- Ensure your property meets minimum rental standards. This may involve planning renovations or maintenance to bring it up to standard.
Documentation:
- Be aware of changes to your rights as a property owner, including your ability to terminate a lease. This is crucial if you plan to move into the property or rent it to a family member.
- Keep detailed records of rent increases, as these need to be included in the tenancy agreement.
- Always check that your insurance coverage is appropriate, and consider options for rent coverage, especially with the new legislation regarding break leases and claiming costs from tenants.
- When purchasing or renovating a rental property, consider pet-friendliness, as the trend towards pet ownership in rentals continues to grow.
Communication:
- Good communication and active management of a rental property is becoming increasingly important, as there are new guidelines as to the response timeliness of tenant requests.
The next round of rental reform is due to come into effect in May 2025, and will include tenant requests for modifications to properties, notice periods for entry and frequency to a property, collection and storage of information and verification of identity.
With these rapidly evolving rentals laws in Queensland over recent years, it is important to keep on top of all requirements. At Hauss Rentals, we stay ahead of these changes to ensure landlords are not caught off guard or exposed to legal risks. If you need advice, our team is always here to help. Feel free to reach out—we’re committed to offering the assistance you need.
