As part of this announcement, various initiatives to support Queensland renters, including over $160 million of additional funding to help tackle cost of living through an expanded range of support for renters to find, get and keep a rental home were announced.

The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 (Amending Act) effects various changes to the Residential Tenancies and Rooming Accommodation Act 2008 (RTRAA) aimed at giving effect to the Homes for Queenslanders initiative. Some of the amendments commenced on assent (6 June 2024) and other will commence on proclamation. The amendment commencing on assent are noted below.

Changes to residential leasing practice

The main changes to the residential tenancies regime are:

• Portable bonds (s 155A): the establishment of a portable bond scheme to allow renters to transfer their bond when relocating from one rental property to another;
• Code of Conduct: clear expectations are set through a rental sector Code of Conduct to foster appropriate and professional practices in Queensland’s rental market;
• Rent bidding banned (s 57): all forms of rent bidding are banned. A landlord cannot solicit, invite or accept rent in excess of the fixed amount stated in an advertisement;
• Rent increases limited: an increase in rent for a property may not occur more than once in any 12-month period, irrespective of the identity of the tenant. Details of the last day the rent was increased will need to be stated in the tenancy agreement (s 61(2)(c)). If requested by a tenant, the landlord is required to provide evidence of the date of the last rent increase for the property for both a residential tenancy or a rooming accommodation agreement (see s 93A and s 105C RTRAA);
• Rent in advance: rent may not be solicited, invited or accepted in advance for more than 4 weeks. (s 57AA, s 87(1));
• Exempt lessors (s 82A): community housing providers and State government lessors are exempted from s 91 & s 93 (minimum period for rent increase);
• Modifications to rental property: establishing clear processes for renters to install modifications they need to live safely and securely in their rental home and to have confidence their privacy is protected; (commencing on proclamation);
• Privacy protections: new restrictions for protecting renters’ privacy by requiring 48 hours’ entry notice and a prescribed form to be used to apply for a property, which limits the information that can be sought (commencing on proclamation);
• Re-letting costs: limiting re-letting costs based on how long is left on a fixed-term lease (commencing on proclamation);
• Tenant choice: ensuring renters have a fee-free option to pay rent, and choice about how they apply for a rental property and receive utility charges: (commencing on proclamation);

These changes will apply to a broad range of rental properties that are privately owned, as well as social (public and community) housing arrangements including:

1. general residential tenancies (houses, flats, units, townhouses);
2. moveable dwelling premises (caravans, caravan sites and rented manufactured homes); and
3. rooming accommodation (boarding houses, residential services, room-only arrangements, and off-campus student accommodation).

Commentary in Chapter 18 Leases will be updated soon to incorporate these amendments.

Effect of amendments limiting rent increases within 12 months of last increase

According to s 93 RTRAA, a landlord "must not increase, or purport to increase, the rent payable by a tenant less than 12 months after the last rent increase for the residential premises". This does not prevent a landlord giving notice within the 12-month period provided the rent increase does not take effect until the end of the 12 months.

The amendments clarify that rent is increased if:

1. the rent increases during the term of a tenancy; or
2. a new agreement is entered into for the premises and, immediately prior to the new agreement, either rent was not payable or the amount of the rent payable was less than the rent under the new agreement.

It is also clear that the limitation on increasing the rent within a 12-month period applies even if the prior tenancy agreement was with a different tenant or was entered into by a previous owner of the property (s 93(4)), or was prior to the commencement of the Amending Act. For the purpose of calculating the 12-month period a lease entered into prior to commencement is relevant: s 579 RTRAA.  

The new tenancy agreement entered into after commencement must state the day the rent was last increased prior to the current agreement. A tenant is entitled to require evidence from the landlord of the day of the last rent increase under s 93A or s 105C RTRAA.

Some examples of how this will apply

Example 1: Landlord A leases the premises to Tenant B on 1 June 2024 for 12 months. The rent cannot increase during the term or until 1 June 2025.

Example 2: Landlord A leases the premises to Tenant B on 1 April 2024 for 6 months. Tenant B renews the lease for a further 6 months. The rent cannot increase until 1 April 2025.

Example 3: Landlord A leases the premises to Tenant B on 1 September 2024 for 12 months. Tenant B is released early in July 2025. Landlord A advertises the property for rent on 15 July 2025. The rent cannot be more that the rent under the lease to Tenant B. The rent can increase from 1 September 2025 if notice is given and the tenancy agreement allows for the increase during the fixed term of the tenancy.

Example 4: Landlord A leases the premises to Tenant B on 1 July 2024 for 6 months. Landlord A sells the property to Buyer C on 1 October 2024. Tenant B does not renew the lease. Landlord C advertises the property for rent on 2 January 2025 for rent. The rent cannot be more than the rent under the lease to Tenant B. The rent can increase from 1 July 2025 if notice is given, and the tenancy agreement allows for the increase during the fixed term of the tenancy

Example 5: Landlord A leased the premises to Tenant B on 1 May 2024 for 6 months. The lease is not renewed because Landlord A moved into the property to get it ready for sale. On 1 December 2024, A sells the property to C with vacant possession. C advertises the property for rent. The rent cannot be more than the rent under the lease to Tenant B. The rent can increase from 1 May 2025 if notice is given and the tenancy agreement allows for the increase during the fixed term of the tenancy

Example 6: A owns a house with a self-contained flat on the ground floor. A allows her mother to live in the flat, for a minimal rent of $10 a week, from 1 February 2024. On 1 July 2024, A’s mother moves to aged care and A puts their house on the market. C buys the house on 1 September with vacant possession and decides to rent out the flat for extra income. C cannot advertise the flat for rent higher than $10 per week until 1 February 2025.

The arrangement between A and her mother is a residential tenancy because it is a “right to occupy residential premises under a residential tenancy agreement” under s 18. Residential premises include part of premises. A residential tenancy agreement is an agreement under which a person gives someone else a right to occupy residential premises. The agreement may be oral or in writing.  

Example 7: A owns a house with a self-contained flat on the ground floor and rents it on Airbnb for short stay accommodation. The last rental ended on 1 November 2024 for a rental of $500 per week and A sold the house to C on 1 December 2024. C decides to rent out the flat for extra income on 1 January 2025. C can charge a rental higher than $500 per week if the rentals in the previous 12 months were no longer than 6 weeks to any one tenant.

It is worth noting that the rent restrictions do not apply to exempt lessors as defined under s 82A. This will include community housing providers and the State government as lessors.

Changes to conveyancing practice

The amendments which prohibit rent increases within a 12-month period will have a flow on effect to the information a buyer should request from a seller about the property. New versions of the REIQ Contracts, to be released soon, will include requirements for sellers to disclose information about rent reviews for the premises.

As highlighted by the examples above there are a number of considerations for a buyer:

1. the buyer will be unable to advertise a property for rent at a rent higher than the rent charged by the previous owner until 12 months have elapsed since the last rent increase;
2. a buyer contravenes the 12-month limitation in s 93 RTRAA may be subject to a penalty of 20 penalty units (currently $3,096);
3. the tenant will not be obliged to pay the increased rent above the previous rent; and
4. a tenant may at any time, under s 93A request the landlord to provide evidence of the last day the rent was increased. If the buyer was not the owner of the property at the time of the last rent increase, they will need to obtain this from the seller or their agent. A failure to provide this evidence to the tenant may incur a penalty of 40 penalty units (currently $6182). A transitional provision will apply to landlords who acquired a property within 12 months of the commencement date. In this case, if the landlord does not have the evidence no penalty will apply, but without the evidence it will make it difficult for the landlord to know if an increase to the rent under the proposed tenancy is in accordance with the RTRAA.

New versions of the REIQ contracts will include additional disclosure obligations, warranties about the accuracy of information and new settlement requirements.

Additional disclosure

In addition to disclosing the details of any existing residential tenancy agreement (RTA) or a rooming accommodation agreement (RAA) to which the sale is subject, the seller will also need to disclose:

• if the property has been subject to an RTA or a RAA at any time in the last 12 months prior to the contract date, even if it is not current;
• If there has been a tenancy within the last 12 months, the date of the last rent increase for each residential premises is required to be stated in the Reference Schedule. If there is more than one residential premises in the property (eg flats) the last date for each of the agreements is required;

New warranty

New warranties are added to clause 7.4(5): The seller will warrant that:

1.  the statements made by the Seller in the Reference Schedule under Residential Tenancies and Rooming Accommodation Agreements are true and correct; and
2. If there are Tenancies, the current rent complied with the requirements of s 91 and s 93 of the RTRAA as those sections applied on the date of each Tenancy.

If the statements in cl 7.4(5) are not correct, the buyer is entitled to compensation (cl 7.5(6)) and is not entitled to terminate or withhold a portion of the purchase price because of a compensation claim.

Additional documents to be handed over at settlement

At or prior to settlement the seller will be required to provide to the buyer, the evidence necessary to satisfy the requirements in s 93A or s 105C of the RTRAA, for any tenancy or rooming accommodation agreement for the property within the previous 12 months. This may include a copy of the previous tenancy agreement, the notice given to the tenant to increase the rent or a rent ledger for each of the tenancies. A failure to provide this evidence will allow a buyer to refuse to complete or terminate the contract for a failure of the seller to provide the documents.

The changes outlined above will be made to the Residential Land and Houses Contract, Residential CTS Contract and Commercial Land and Buildings Contracts, published in the Conveyancing Manual Queensland.

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Conveyancing Manual Queensland by author Professor Sharon Christensen is a practical step-by-step manual which is a core reference for conveyancing practitioners in Queensland.

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