New QLD Rental Laws - 30 September 2024
There are 6 new laws coming into effect from the 30th September 2024 that will affect Owners and Property Agents in Queensland regarding rental properties. The details have been obtained via the RTA website - RTA Rental Laws Sept 2024
These are:
1. Rental bond amounts – as it currently stands, the amount for a bond up to $700/w in rent is capped at 4 weeks. Bonds for rent paid above $701 /w has been open to negotiation That is going to change so any bond for any rent amount will be capped at 4 weeks.
a. There will be provision for the tenants to request to have the excess bond paid back to them via the RTA. I would suggest being the proactive agent or owner and having these amounts refunded to the tenants via your control. This will help to make sure the amount to be refunded is in fact the correct amount above 4 weeks of rent.
b. If there is a claim in the bond, the evidence of the claim – maintenance, cleaning, other costs, must be provided to the tenant within 14 days. For bonds lodged with the RTA before the 30th September 2024, there is a 12 month transitional period. Bonds lodged after the 30th September will require evidence to be provided with the agent or owner claims or disputes the bond.
2. Rent Payments – tenants will need to be provided with at least 2 ways to pay rent including a way that does not incur more than usual bank costs and is reasonable available to the tenant.
3. Utility Bills – Agents and Owners will have a 4 week period on receipt of the invoice, to pass the charge – with evidence of the costs, to the tenant to pay. If the evidence is not provided within this time, then the tenant may not be required to pay the invoice.
4. Re-Letting costs – this is for a break-lease scenario. Previously, Owners and Property Agents would regularly request the departing tenants to pay for advertising and re letting costs and to continue to pay rent until the property was leased. This has now been changed so that re-letting costs will be calculated on the remaining time on the tenancy or rooming agreement and whether the fixed term agreement is greater or less than three years. For agreements up to three years it's the lower amount of the specified reletting costs or the rent until a new tenant/resident moves in.
5. Information sharing – the RTA will have the ability to share information with other government agencies and departments to drive greater compliance and enforcement outcomes for the sector.
6. Providing false and misleading information – making it an offence for anyone involved in a tenancy to provide false or misleading information to the RTA.
The biggest change that could have a direct and immediate financial impact on Owners around Queensland is law 4 – Re-letting costs.
It is my recommendation that if you were thinking previously about not having Landlord Insurance or covering for loss of rent, that this is the time to reconsider your options. If your tenants move out and you do not have the ability to have new tenants in before 4 weeks, then there is a very real chance that you will lose rental earnings. This is over and above the costs that you will need to pay for marketing and re-letting the property of course. You may have a chance to claim lost rent through your insurance company – depending on how it is set up and the costs received from the departing tenant is costed to your account.
If you are feeling lost with your rental property or would like to discuss the service you are currently receiving from your agent, then please contact me to see if I would be a good fit for you to work with.
Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.