The Stage 2 Rental Reforms are now in effect and the Queensland Government has announced commencement dates for more upcoming rental law changes.
All property managers and landlords need to be aware of the most recent changes in effect as of 30th September 2024.
The next round of Rental Reforms will commence on 1 May 2025.
The Matthews Real Estate Property Management team has studied the new legislation at length, unpacked and highlighted the key changes, and what these changes mean for landlords and the rental sector.
Key changes to Tenancy Laws Commencing 30 September 2024
From 30 September 2024 the following new laws will apply to any new and/or renewed tenancies –
New Limits for reletting costs for break leases
- Re-letting costs for break leases – Landlords/agents can no longer charge a tenant “1 weeks’ rent +GST and rent until a new tenant takes over”.
- The way reletting costs are calculated when a tenant ends their fixed term agreement is the lower of:
- the amount of ‘reletting costs’ calculated as 1 week’s rent for each ¼ of the lease remaining + 1 additional week’s rent.
- i.e. If the tenant has been in the property for less than 25% of the term = 4 weeks rent; 25-50% of the term = 3 weeks rent; 50-75% of the term = 2 weeks rent; final 75-100% of the term = 1 weeks rent.
- OR the amount equal to rent payable between the handover date of vacating tenant and the date the new tenant moves in.
- the amount of ‘reletting costs’ calculated as 1 week’s rent for each ¼ of the lease remaining + 1 additional week’s rent.
- The way reletting costs are calculated when a tenant ends their fixed term agreement is the lower of:
Utility charges must be passed onto tenants within 4 weeks
- Utility bills – A tenant must receive utility bills within four-weeks of the lessor receiving the bill, otherwise the tenant does not need to pay.
- If you are a landlord who pays your bill directly and then forwards to the Property Manager to on-charge to the tenant please be mindful of the new timeframe in which this bill must be passed onto the tenants. As the lessor, once you receive this bill you must on-charge the tenant within 4 weeks to be able to seek reimbursement.
- If you already have arrangements for our office to pay your utility bills on your behalf, we are able to ensure the bills are forwarded to the tenant within the required period.
Bonds limited to 4 weeks rent
- Maximum bond limits – Landlords/agents cannot request or accept a rental bond higher than 4 weeks’ rent.
Bond Claims must be made with evidence within 14 days
- Evidence for bond claims – Landlords/agents are now required to provide evidence to the tenant within 14 days of the Form 4 Refund of Rental Bond being lodged if they want to make a claim or dispute the tenants request for a bond refund. Examples of evidence include receipts, quotes to repair damage and/or records of unpaid rent.
For further details, follow the link below to the RTA website:
Rental law changes resources | Residential Tenancies Authority (rta.qld.gov.au)
If you have any questions, or if you need help with understanding these new tenancy laws, you are welcome to contact the Matthews Real Estate Property Management team. We will be more than happy to assist you.