It can be hard as a property owner to keep up with all legislation and requirements of having an investment property.  The Queensland Government recently passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024.   This Bill introduces the Stage 2 rental law reforms and continuing professional development requirements for Property Agents in Queensland.

 

We have broken down this reform for you and highlighted the important information to come from the passing of this Bill to make it easier. 

What are These Reforms and What Do They Mean For You?

 These Stage 2 Rental Reforms will be rolled out in 2 parts with the first rollout having commenced on 6 June 2024.

 Changes relating to rent include

  • A lessor or property manager can no longer accept an offer from a tenant to pay rent above the advertised price.
  • The rent increase frequency limit will be attached to the property instead of the tenancy. This means that rent can not be increased within 12 months after the last increase for the property. This requirement applies regardless of whether there is a change of tenant or lessor in the 12-month period. This will also apply retrospectively, meaning a rent increase must be calculated from the date of the last increase for the property, even if the date was before the laws commenced.
  • The tenancy agreement needs to include the date of the previous rent increase for the property. A tenant will be able to request evidence of the last rent increase for the property such as the last tenant’s agreement.

Other changes and requirements include

  • A new entry ground will be introduced for rooming accommodation for the installation, maintenance or replacement of smoke alarms
  • Confidentiality requirements under the domestic and family violence provisions will be expanded.
  • “Head of Power” provisions will allow the Government to create regulations in the future around establishing portable bond schemes, code of conduct and a process for accessibility, safety and security modifications in residential tenancies.

How Do These Changes Affect Property Managers? 

Property managers will need to view their processes when it comes to

  • Accepting rental applications,
  • Tenancy renewal and
  • Implementing rent increases.

 This is to ensure that the new laws are being complied with. Breaching these new laws can carry heavy penalties of up to $7,000 per infringement.

Will My Property Manager Be Up to Date With These Reforms?

 We all know a great Property Manager can make for a stress-free experience. To help Property Agents who should be across these reforms, the REIQ has created new resources and practical training so that they can confidently navigate these changes. They have updated the New Tenancy Laws ToolKit with comprehensive practical assistance related to these changes.

 At the practical training, they will not only learn about what the changes are, they will get a thorough understanding of what should be done to prepare as well as how to navigate different scenarios that they may run into when managing tenancies.

 For the NXTGEN team ongoing training is a priority, especially when there have been important changes.  Recently, the whole office attended a day of training with Real Estate Excellence with Stacey Holt. This was important to ensure that everyone, both sales and property management was across the reforms and understood the changes.

Continued Professional Development for Property Agents

 This Bill also introduces a framework for continuing professional development (CPD) for all property agents in Queensland. Property Agents will have CPD requirements determined by the Office of Fair Trading (OFT) that will need to be completed each year.  

 Property Agents will be required to submit a statement to the OFT confirming what CDP requirements have been completed each CDP year when renewing a real estate license or registration.

This Bill will apply to all licensed and registered residential sales agents, property managers, resident letting agents, buyer’s agents, auctioneers, commercial sales and leasing agents, commercial property managers and business brokers operating in Queensland.  This means Queensland will now be brought in line with other jurisdictions.

What is The Second Stage of the Roll Out

 The second part of the roll-out is set to commence at a to-be-determined later date and will include

  • A prescribed form for tenancy application meaning property managers will only be able to request limited information from a tenant in their application
  • 1 fee-free rent payment option must be available
  • Bills for service charges and water consumption charges must be provided to the tenant within 4 weeks (unless water consumption charges relate to the end of a tenancy, in which case the property manager can issue an invoice calculated on reasonable use)
  • The entry notice periods shall be extended from 24 hours to 48 hours
  • Lessors will need to provide evidence to substantiate bond claims within 14 days
  • A new process for the attachment of fixtures and making structural changes in residential properties
  • If a tenant breaks the lease, reletting costs will need to be calculated in accordance with a statutory formula
  • A new process will be introduced for collecting, storing and destroying personal information

 

There has definitely been a lot of much-needed change when it comes to Rental Law Reforms with much more still to come. With all these changes it’s more important than ever to know what to look for when engaging a Property Manager.

 

If you're looking for a Property Management team that will make sure that your investment is in the best hands, contact NXTGEN Property. Your property is our priority.

 

RESOURCES

https://www.reiq.com/articles/news/stage-2-rental-law-reforms-and-continuing-professional-development-pass-parliament

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