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New Rent Increase Laws in Queensland (2024)

Reviewed by Christina Penrose

Today, we're taking a closer look at an important topic for tenants and landlords alike—the new rent increase laws in Queensland. These changes, effective from 6th June 2024, have been introduced under the Residential Tenancies and Rooming Accommodation Act QLD (2008), and they bring some significant updates.

What’s New?

1. Ban on Rent Bidding

Rent bidding, or accepting offers higher than the advertised price, is now banned. This change aims to create a fairer rental market for everyone involved.

2. Maximum Rent in Advance

Property managers or owners can no longer solicit or accept more than two weeks' rent in advance for periodic tenancy agreements, rooming accommodation agreements, or movable dwelling tenancy agreements. For fixed tenancy agreements, the limit is one month. Even if a prospective tenant offers more, the law restricts the amount that can be accepted upfront.

3. Rent Increases

Rent increases are now limited to once every 12 months and are attached to the property itself, not the tenancy. This means that even if a tenant moves out, the rent cannot be increased for the property within that 12-month period. All written agreements must state the date of the last rent increase.

4. Exemptions for Rent Increases

Certain property managers, owners, and providers are exempt from the minimum period for rent increases. The Act defines who qualifies as an exempt property manager or owner.

5. Evidence of Last Increase

Tenants can request evidence of the last rent increase, and managing parties must provide this within 14 days of receiving a written notice.

6. Undue Hardship

If a landlord faces undue hardship, they can apply to the Queensland Civil and Administrative Tribunal (QCAT) for permission to increase rent within 12 months. The tribunal will consider the tenant's affordability and ability to continue paying rent.

7. Fixed Price for Rooming Accommodation

Rooming accommodation must now be advertised at a fixed price to ensure transparency and fairness. Rooming accommodation is renting a room in a shared house with shared facilities like bathrooms and kitchens. Tenancy Agreement is used when renting an entire property, like a house or apartment. Unlike a rooming agreement where communal areas are shared, with a tenancy agreement, the tenant is entitled to exclusive access to the entire property.

Selling Your House? Here’s What You Need to Know

When selling a property, a new question has been added to the contract of sale. If the property has been subject to a Residential Tenancy Agreement or Rooming Accommodation Agreement within the last 12 months, the date of the last rent increase must be disclosed. Failure to do so can give the buyer the right to terminate the contract.

What if I Don’t Know the Last Rent Increase Information?

If the property was purchased within 12 months of the tenancy start, and you or your agent don't have the information about the last rent increase, you're not required to provide evidence. However, if any party involved in the management of the property has this information, it must be disclosed.

Dispute Resolution

If issues arise that cannot be resolved through self-resolution, tenants or landlords can request dispute resolution or an investigation by the Residential Tenancies Authority (RTA).

Penalties for Non-Compliance

Increasing rent within less than 12 months is an offence under the Act and carries a maximum penalty of 20 penalty units. At the time of writing, a penalty unit is 161.30, making the maximum fine $3,220 as of July 2024.

What This Means

These updates represent a massive shift in how rent increases are managed in Queensland. The 12-month restriction on rent increases, tied to the property, is aimed at protecting tenants and promoting transparency. However, there are broader implications to consider. For example, if you rent a property at a reduced rate, such as to your children, you should be aware that you will be locked into that rate for 12 months. Additionally, if you decide to sell the property, the buyer will also be obligated to maintain the same rent for 12 months. This is the case even if renovations or improvements have been made.

If you have any more questions, you can read up on these changes on the RTA website.

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