Changes to QLD’s Rental Laws in 2024

Property, Commercial leasing

March 3, 2025

5 minute read

Legislation Update

Key Takeaway Points

Rentals comprise more than one third of Queensland households and are increasingly utilised as a long-term housing option.

The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 introduced Stage 2 of Queensland’s rental reforms and aims to assist in meeting the housing needs of Queenslanders.

Changes commenced in relation to rental payments, increases, bidding, bond processes, and the provision for new heads of power regulations.

The property sector must ensure they are using the updated Residential Tenancies Authority forms that reflect the legislative changes.

Introduction

The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 (Amendments Act) implemented Stage 2 of Queensland’s rental law reforms in 2024.

Currently rentals comprise more than one third of Queensland (QLD) households and are increasingly utilised as a long-term housing option. The purpose of the Amendments Act is to better protect renters and property owners and meet the housing needs of Queenslanders.

The Amendments Act is part of a staged reform process which commenced with the introduction of the Housing Legislation Amendment Act 2021. We have previously written on the changes that came into effect between 2021 to 2023, and these articles can be accessed here:

Bryce Melville on LinkedIn: Property Developments – QLD Rental Law Updates

Bryce Melville on LinkedIn: Property Developments: Reforms to QLD’s Rental Laws

Rental payments

Property owners are required to offer renters two methods to pay rent. One of these methods must be a
fee-free option to pay rent that does not incur more than usual bank costs and is reasonably available to a
tenant. The lessor or their agent must also disclose any financial benefit that they would receive from a way of paying rent.

Rent increases

There is now a 12-month limit on rent increase frequency. The annual limit applies to the rental premises and not the tenancy itself, meaning that a change in landlord or tenant will not affect the requirement. Written notice of rent increases must be provided, and the date of the last rent increase must be disclosed.

A tenant is entitled to request evidence of when the rent was last increased, and this information must be provided to them within 14 days.

Lessors may apply to QCAT if they believe they would be caused ‘undue hardship’ by being unable to increase rent during the 12-month period.

Updated REIQ residential contracts
It is noted that the Contract for Houses and Residential Land (19th edition) and the Contract for Residential Lots in a Community Titles Scheme (15th edition) have been amended to reflect the new rent increase provisions.

Rent bidding

All forms of rent bidding are now prohibited. Lessors and agents will be subject to penalty if they do not offer a residential tenancy or rooming accommodation at a fixed amount, or if they accept an offer of rent above the price advertised. However, lessors or agents may accept rent above statutory limits during the period of the tenancy.

Rental bond process

Bond claims made by a property owner, lessor or agent need to be substantiated with evidence supporting the claim. Examples of evidence include receipts, quotes to repair damage, and records of unpaid rent. Such evidence must be provided to the tenant within 14 days of the claim being lodged with the Residential Tenancies Authority (RTA). It is noted that for bonds lodged:

• before 30 September 2024, a 12-month transitional period applies to 30 September 2025; and

• after 30 September 2024, the evidence must be provided to the tenant otherwise an offence with a maximum penalty of 20 penalty units applies against the relevant lessor.

The maximum bond has been strictly limited to four weeks rent for all residential tenancy and rooming accommodation agreements.

The RTA also now has the ability the refund bonds to renters who use commercial bond products and to pay a rental bond if QCAT have dismissed an application about a bond dispute.

New ‘head of power’ provisions

Regulations for three new Heads of Powers will commence on a date to be advised. We will provide an update once these regulations have been developed, and more information is known.

Rental sector Code of Conduct
The Amendments Act provides for a rental sector Code of Conduct to be established. This allows Government to prescribe clear behavioural standards expected of lessors, providers, agents, tenants, and residents. Penalties of up to a maximum of 50 penalty units may be prescribed for non-compliance.

Portable bond scheme
The Government has the power to create a portable bond scheme to allow tenants to transfer their bond, when moving from one property to another. The aim is to lessen the financial burdens faced by renters when moving tenancies.

Applications to make modifications
The Amendments Act provides for the creation of a framework allowing parties within a tenancy to negotiate modifications to the rental property. Applications for modifications must be for the necessity of a renter’s safety, security or accessibility.

Further changes introduced

Limitations apply to reletting costs where a tenant decides to end their lease early for a reason not allowed under the Residential Tenancies and Rooming Accommodation Act 2008. For a fixed term lease agreement that is:

• 3 years or less – the reletting costs are the smaller of the rent amount payable until the new tenant or resident moves in or the prescribed reletting costs dependent on how much of the agreement has expired; and

• longer than 3 years – the reletting costs comprise the smaller of the rent amount payable until the new tenant or resident or 1 months’ rent for every 12-month period remaining on the agreement, up to a maximum amount equal to 6 months’ rent.

If a tenant must pay an amount for a utility service, the Amendments Act sets a 4-week timeframe for the tenant to receive the utility bill once it has been issued. If the tenant does not receive the bill within this timeframe, they are not required to pay the bill.

There are greater efforts being made towards guaranteeing compliance through offence provisions and the industry must ensure that they are using the updated RTA forms that reflect the legislative changes. We note that further changes forming part of Stage 2 of QLD’s rental reforms will come into effect from 1 May 2025. Stay informed with our upcoming article providing an overview of these changes.