Better rent protections – proposed reforms
The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024 proposes reforms to strengthen renters’ rights and stabilise rents. The Bill is not yet law and has been referred to the Housing, Big Build and Manufacturing Parliamentary Committee for consideration.
Ban on rent bidding
Rent bidding means prospective renters do not have a level playing field to find and get a rental home they can afford. Under the Residential Tenancies and Rooming Accommodation Act 2008, rental properties must be advertised or offered at a fixed rent amount.
The Bill proposes amendments to ban all forms of rent bidding, including banning rental property owners and property managers from:
- soliciting offers above an advertised amount
- accepting offers above an advertised amount
- accepting rent in advance of more than
- 2 weeks rent for periodic agreements and agreements for moveable dwelling premises (caravans or manufactured homes)
- 4 weeks rent for other tenancy agreements.
Banning all forms of rent bidding will improve fairness and transparency in the rental application process and help to stabilise rents. Penalties will be enforced against property managers and rental property owners who engage in these practices.
Limit on rent increase frequency
From 1 July 2023, Queensland’s rental laws limit the frequency of rent increases to once every 12 months for all new and existing tenancies. This will help stabilise rents in the private rental market in response to rental affordability and cost-of-living pressures.
Under the current arrangements, rental property owners and property managers can increase the rent more often than once a year by ending a tenancy at the end of a fixed term. The Bill proposes to apply the annual rent increase frequency limit to the property, rather than the tenancy. Breaching this requirement will be an offence.
This change will help renters keep their tenancy and achieve the original intent of the policy to stabilise rents in the private rental market.
Application to QCAT about rent increases
The Bill proposes to enable a rental property owner to apply to the Queensland Civil and Administrative Tribunal (QCAT) for an order to increase the rent before the 12-month limit if complying with the limit would cause undue hardship.
Before making an order, QCAT must consider any representation made by the renter about the likely impact on the affordability of the property and the renter’s ability to continue to pay rent.
This change will provide options for property owners who are significantly affected by the reform.
Exemptions from the limit on rent increase frequency
Rental property owners or property managers who apply an income-based rental policy, such as community housing providers and crisis accommodation providers, require flexibility to adjust rent when:
- a renter’s income changes
- an additional household member moves in or out of the home
- a new renter takes possession.
The Bill proposes to exempt community housing providers and crisis accommodation providers who apply an income-based rent policy from the annual rent increase frequency limit.
Disclosing rent increases
The Bill proposes to require property owners and property managers to disclose the date that the rent was last increased on tenancy agreements. Breaching this requirement will be an offence.
If passed, the Bill will enable renters to request evidence that substantiates the date of the last rent increase, and rental property owners or property managers will have 14 days to respond.
This change will make it easier for renters to know when their rent is allowed to increase.