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Hi everybody - George Sourris, Empire Legal.

Today's topic: New rent increase laws QLD - what you need to know!

Okay guys - the new laws for rent increase began on the 6th of June 2024. Special thanks to the Residential Tenancies Authority (RTA), for providing this information that I'm able to share with you all today.  This new law is all governed by the Residential Tenancies and Rooming Accommodation Act QLD (2008).

So, if you want some light reading on the topic, this 467 page Act is the source of truth. If not, keep reading and I will summarise some of the important parts.  

Okay, so what's changed? 

Rent bidding. 

Rent bidding, or accepting rent offers higher than the advertised price, are banned. 

Maximum rent in advance. 

A property manager or owner cannot, at the start of a new tenancy, solicit, accept, or invite a tenant to pay more rent in advance than exceeds two weeks for a periodic tenancy agreement, a rooming accommodation agreement, or movable dwelling tenancy agreement; and one month for a fixed tenancy agreement, even if a prospective tenant makes an offer to pay more than the amount prescribed in the legislation. 

Note: throughout the course of a tenancy, a tenant may negotiate how much rent in advance to be paid.  

Rent increases.

Limited to 12 months and are attached to the property instead of the tenancy. This is huge guys, so that means that period of time, that 12 months, the rent can't be increased even if a tenant moves out. It's linked to the property. Written agreements must state the date of the last rent increase.

Exemptions for rent increases. 

Exempt property managers / owners and exempt providers / agents will be exempt from minimum period of rent increase. The Act provides a definition of an exempt property manager / owner and an exempt provider. I've placed a screenshot of this extract from the Act below.

Evidence of last increase. 

A tenant may, by written notice, request from a managing party, evidence of the day of the last rent increase which must be provided within 14 days. 

Undue Hardship. 

A managing party may apply to Queensland Civil and Administrative Tribunal (QCAT), for permission to increase rent within 12 months due to undue hardship. The tribunal must have regard to any representation made by the tenant in relation to affordability and ability to continue to pay rent. 

Fixed price. 

Rooming accommodation must be advertised at a fixed price.  

What do I need to do when I'm selling my house?  

When you're selling, there is a new question that has to be answered on the contract of sale. It appears on the top of page 4 of a standard REIQ contract, providing you're using the latest version.

If you're not, make sure you update to the latest version. 19th edition for house and land, and 15th edition for a residential lot in a CTS, or Community Title Scheme.  The new section (see below extraxct) says: "Has the property been subject to a Residential Tenancy Agreement or Rooming Accommodation Agreement at any time within the period of 12 months before the contract date?" 

If yes, the date of the last rent increase for each residential premise comprising the property MUST be disclosed. 

So, this only applies if it's a Residential Tenancy Agreement or Rooming Accommodation Agreement.  If it's a short term accommodation or any other type of tenancy, it is NOT required to be filled out on this section of the contract. Please keep in mind here that a failure to disclose properly by settlement means the buyer may have rights to terminate the contract.

REIQ CONTRACT - Standard Term 5(3)(1)(e).

Required to be handed over at settlement:

Residential Tenancy Agreement vs Rooming Accommodation Agreement. 

Okay, so what's the difference?

Put simply, a Residential Tenancy Agreement is where you privately rent a property from a landlord, i.e. a house, an apartment, etc. You get exclusive access to the entire property. 

A Rooming Accommodation Agreement, as the name suggests, gives the tenant private access to a room they are renting in a share house. So facilities such as the bathroom, kitchen, laundry, etc. are shared. More information available here if you want to dive deeper.  

What if I don't know the last rent increase information?

The requirement to provide evidence of a rent increase does not apply if the premise is purchased within 12 months of commencement and the property manager or owner / provider does NOT have information about the date of the last rent increase. If the property was purchased within 12 months of the start of the tenancy, the property manager / owner is NOT required to provide evidence if they do not have it. 

Please note: that under legislation, an owner is deemed to have evidence of the last rent increase if they or their agent - e.g. real estate agent, property manager, lawyer, has this information in their possession or control. 

Dispute resolution. 

If the issue cannot be resolved through self resolution, customers may request a dispute resolution through the RTA, or a tenant can request an investigation by the RTA.

Fun fact - if the residential premises is a "movable dwelling" for a long tenancy, the 12 month period applies to whether the rent increase was for the dwelling, its site, or both.  

It is an offence under the Act to increase the rent in less than 12 months, with a maximum penalty of 20 penalty units. 

The current amount for a penalty unit is $161.30 per unit. So, you're looking at a maximum fine of $3,220 at the time of writing this blog, which is July 2024.  

Okay, so there you have it. The latest law updates for rent increases in Queensland. A massive shift for our industry, guys. That 12 month period of not being able to increase the rent. 

If you've got any extra queries, you're best to direct your questions directly to the RTA. Also, here is a link for those who want to read up in more detail about these new laws. Thanks everyone, we'll see you next week. 

As always, if we've added value, all we ask is a like, a comment and a share.

Anyone that's renting in Queensland or landlords in Queensland, they're going to want to know about this one. Give it a share!

Thanks guys.

We'll see you next week. 

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George Sourris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.