Further changes to residential tenancies in Queensland – what you need to know (2024)

On 6 June 2024, the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 (Qld) (Amending Act) received assent and became law. The Amending Act amends the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) (RTRA Act), and introduced a number of significant changes, including to the annual rent increase frequency limit, rent bidding, application processes and information that can be collected, as well as break lease fees.

There is little doubt that these amendments will have a significant impact on residential landlords throughout Queensland, including the use of a new Form 18a General Tenancy Agreement.

In this alert, we highlight some of the key things that are changing. We also explore the potential impacts, particularly for community housing providers (CHPs) and providers of specialist disability accommodation (SDA) and purpose built student accommodation (PBSA).

What is changing and when?

The reforms aim to strengthen renters’ rights and provide stability within the rental market. They will come into effect in two stages: upon assent (from 6 June 2024), and on a date to be set by proclamation.

From 6 June 2024:

• the annual rent increase frequency limit is attached to the premises instead of the tenancy (see further below);
• agreements and notices of rent increases must include the day the rent was last increased for the premises;
• tenants have the right to request evidence of the last rent increase at any time, and landlords will be required to provide such evidence within 14 days (following advocacy, an exception has been added where the premises were purchased within 12 months after commencement and the landlord does not hold this information); and
• all forms of rent bidding, including accepting rent offers higher than the advertised price or accepting more than 1 months’ rent in advance (for general tenancies; 2 weeks’ rent for periodic tenancies or moveable dwellings), are prohibited.

From a future date (by proclamation):

• a new standardised rental application form (to be created) must be used when a tenant is applying for a rental property;
• tenants will have the option to lodge the new standardised application form in at least 2 ways, including one that does not use third-party platforms;
• new limits will apply to the personal information that can be requested and collected by landlords, including requirements that any information collected be handled securely and destroyed within prescribed timeframes;
• updated provisions for attaching fixtures or making structural changes will commence (including requirements to not unreasonably refuse a request, and to decide within 28 days);
• the entry notice period will increase from 24 hours to 48 hours;
• utility bills (including water consumption) to be paid by a tenant must be provided within 4 weeks of receipt, failing which the tenant is not required to pay;
• re-letting costs will be capped, generally calculated based on the remaining period of the tenancy;
• evidence to substantiate bond claims must be provided within 14 days;
• tenants must be offered two ways to pay rent for a residential tenancy, including a way that does not incur more than the usual bank costs and is reasonably available to the tenant (and landlords are required to notify tenants of costs in certain circ*mstances); and
• where a notice to leave or notice of intention to leave has been given, a landlord must not enter the premises more than twice in a 7 day period (subject to exceptions for certain types of entry).

The Amending Act also establishes a head of power to establish a rental sector code of conduct and a portable bond scheme, as well as allowing for fixtures or structural changes where necessary for the safety, security and accessibility of a tenant in accordance with the Residential Tenancies and Rooming Accommodation Regulation 2009 (Regulations). These changes are still progressing through consultation and will be implemented in the future.

Rental increases

As noted in our article here, reforms commencing 1 July 2023 provided for an annual rent increase frequency limit. This limit did not apply where there was a change in tenancy (unless at least 1 tenant remained the same). CHPs were also captured by this restriction, even where rents were determined by income.

The Amending Act expands this limitation, which now prohibits increases within 12 months of the last increase (or time rent was first payable), regardless of the parties to the tenancy agreement. There are no exceptions where improvements have been made to the property, or where a previous agreement was on a discounted rent (including, for example, for ‘friends and family’ arrangements), though there is an ability to apply to the Queensland Civil and Administrative Tribunal where the restriction would cause ‘undue hardship’.

Importantly for CHPs, the rent increase frequency limit no longer applies to an ‘exempt lessor’. Advocacy within the CHP sector also ensured an analogous concept of ‘exempt provider’ was introduced for rooming accommodation agreements. Exempt lessors and providers include those who receive funding for the premises under the Housing Act 2003 (Qld) (Housing Act), where the amount of rent payable for the premises is determined by household income. Further categories of exemptions can be prescribed under the Regulations.

As such, for social housing, CHPs will no longer be captured by the rent increase frequency limit and can increase rents in accordance with applicable policies. Exempt lessors and providers are also excluded from the requirement to give notice of previous rent increases.

However, the definition of ‘exempt lessor’ and ‘exempt provider’ notably fail to:

• capture social and affordable housing providers who receive funding for the relevant premises other than under the Housing Act or the Community Services Act 2007 (Qld), including for example funding provided by Housing Australia under the Housing Australia Future Fund Act 2023 (Cth);
• include affordable or market rentals provided by CHPs (where rent is not determined by household income); or
• address circ*mstances where, under a funding or other subsidy agreement, there is a mix of social and affordable/market dwellings that are required to be maintained to a prescribed ratio. In such situations there is typically a requirement in the relevant agreement to reallocate affordable/market dwellings to social housing (and vice versa) where vacancies occur, in order to maintain the prescribed ratio. However, where the rent for affordable/market dwellings is not determined by income, providers adopting this reallocation approach would cease to qualify as an ‘exempt lessor’ in respect of any such premises reallocated to affordable/market housing (since rent for those premises is no longer determined by income), and would accordingly be unable to increase rent from the previous social housing rent (within 12 months).

It is hoped that further categories of exemptions will be added via the Regulations to address some of these and other issues (including the omission of exceptions for SDA and PBSA providers).

Application processes and information collection

As noted above, tenancy application forms will be standardised and can only include the information permitted by the RTRA Act and Regulations. The Amending Act lists items such as name and contact details, previous agreements the applicant has been a party to, employment and income details, referees and the intended term of the tenancy. Further information may be prescribed by the Regulations, following consultation.

Landlords will be prohibited from requesting information which is not in the application form, or which comprises more than 2 documents in each of the following categories:

• documents verifying the identity of the applicant;
• documents about the applicant’s financial ability to pay rent; and
• documents about the suitability of the applicant for the tenancy.

Further, landlords must not request information from an applicant about:

• legal action taken by the applicant;
• a notice to remedy breach given to or by the applicant;
• the applicant’s history in relation to rental bonds; or
• statements of credit accounts or bank accounts belonging to the applicant detailing transactions.

Landlords must also not keep copies of any identity document (used to verify an applicant’s identity) without the applicant’s consent.

Finally, personal information may only be collected:

• in relation to applicants, for the purposes of assessing suitability for the premises; and
• in relation to tenants, if it relates to the management of the agreement.

Personal information collected must be destroyed within 7 years after the end of the agreement (or, for applicants who do not become a tenant or resident, within 3 months of the agreement for the premises commencing or a longer period agreed by the applicant).

An exemption has been added for ‘relevant lessors’, which includes those who receive funding for the premises under the Housing Act or Community Services Act 2007 (Qld). However, this exemption only applies to the application form – ‘relevant lessors’will still be captured by the restrictions on collecting information as described above.

The limited nature of this exemption may have a significant impact, particularly for:

• CHPs and other entities, who may have obligations under funding agreements or applicable policies to collect certain information and documents to determine eligibility (noting that the documents, or number of documents, that may be contractually required to be collected could be more expansive than the permitted 2 documents per category); and
• SDA and PBSA providers, who may require more than 2 documents to be able to establish suitability of the premises. Such providers are also currently mandated to use the prescribed application form (since they are not captured within the definition of ‘relevant lessor’), though it is hoped that this may be addressed through the Regulations.

Unfortunately, no analogous ‘relevant provider’ exemption has been included in respect of providers of rooming accommodation (including, for example, at section 76C), meaning that CHPs (and other entities who are a ‘relevant lessor’) will need to use the prescribed application form in respect of rooming accommodation.

These issues may be addressed in the future, however would require further amendments to the RTRA Act itself, as these cannot be addressed through the Regulations.

Key takeaways

For landlords generally, make sure to be compliant with the various updated requirements. More than ever, it is prudent to engage an appropriately qualified and experienced professional to assist with navigating the increasingly complex residential tenancy space.

For CHPs, the exemptions noted above are a welcome inclusion, however, these are limited and generally only apply to social housing funded under the Housing Act. As such, CHPs will need to implement dual processes, ensuring that for premises where the CHP is not an exempt lessor/provider or relevant lessor, the annual rent increase frequency limit is adhered to, evidence or details of previous rent increases provided and, upon proclamation, the prescribed application form used.

For SDA and PBSA providers, there are no exemptions, despite the unique nature of the arrangements. Further advocacy is needed to minimise unintended consequences, particularly in relation to application processes and information that can be collected from prospective and actual tenants.

If you require any assistance in navigating the changes to the RTRA Act or any issues raised in this article, please contact us.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.