Queensland tenancy laws every landlord should know

Queensland tenancy laws every landlord should know

Ongoing changes to Queensland’s residential tenancy laws have been introduced to address the housing shortage and ensure greater security for tenants.

At Image Property, we understand that the rental landscape must balance the needs of both tenants and landlords, ensuring a fair and transparent process for all parties involved.

A stable and supportive rental market requires landlords to remain well-informed of these evolving laws to avoid costly mistakes and ensure smooth operations.

With many updates rolling out over the past year, here are three of the most important changes every Queensland landlord should be aware of, along with some practical advice on how to navigate these changes effectively:

 

Rent Increases Limited to Once Every 12 Months

Effective from June 2024, Queensland’s tenancy laws will limit rent increases to once every 12 months, regardless of tenant changes or ownership. This change impacts all rental properties under residential tenancy agreements.

Previously, landlords had the option to increase rents more frequently, particularly if there was a change in tenants or a change in property ownership. However, under the new rules, tenants can expect stability, and landlords will need to plan accordingly for any changes in rent.

This rule aims to prevent tenants from being subjected to unpredictable rent hikes, providing them with greater certainty and security in their rental arrangements.

 

Ban on Rent Bidding

One of the significant changes introduced is the ban on rent bidding. As of now, all rental listings must advertise a fixed rent price. It is no longer legal to use terms like “offers over” or accept more than the listed rent. This change aims to bring more transparency and fairness to the rental process for both tenants and landlords.

Rent bidding practices, where prospective tenants would offer more than the advertised rent in an attempt to secure a property, have been found to create unnecessary competition and can lead to unfair outcomes for renters.

 

Break Lease Fees Now Capped

From 30 September 2024, the break lease compensation is capped. The new regulation outlines that landlords can no longer charge unreasonable fees when a tenant breaks their lease early. The amount of compensation will now be based on how much of the lease term has passed. Previously, landlords could impose higher charges or even enforce financial penalties that tenants found difficult to afford.

This rule is designed to protect tenants from excessive fees when they need to terminate their lease early due to unforeseen circumstances, such as a job relocation or personal issues. The new cap ensures fairness and helps create a more balanced rental environment.

Understanding and adhering to Queensland’s evolving tenancy laws is crucial for all landlords. Not only does it help you stay compliant, but it also fosters a positive, supportive rental experience for tenants.

By staying informed about the latest changes – such as limits on rent increases, the ban on rent bidding, and the cap on break lease fees – you’ll ensure that you can make well-informed decisions and maintain a good reputation in the rental market.

For guidance tailored to your property and situation, you’re welcome to get in touch with our team. We’re here to help you stay informed and ensure your rental is managed in line with current legislation.