How landlords will be able to get around once a year rent hike rule

It will still be possible for landlords to hike the rent on their property more than once a year under the Palaszczuk government’s rental reforms. Here’s how.

• Editor’s view: Damage done despite cap rethink

Landlords could still hike the rent on their property more than once a year if they take on new tenants, under the Palaszczuk government’s rental reforms.

Premier Annastacia Palaszczuk announced a shake up to rental rules on Tuesday as housing stakeholders gathered at state parliament for the latest housing roundtable.

The new rules will mean rent rises will be limited to just once in a 12 month period – but the state government is still determining key details of the proposed changes.

The measures could be limited to the relationship between a landlord and a tenant – which means a landlord who takes on a new tenant during the 12 month period could increase the rent they charge.

For example, if they have a tenant lease the property for six months and then another tenant lease it for the remaining six months, they could be allowed to increase the rent for the new tenant.

Antonia Mercorella from REIQ during a housing shortage round table discussion at Queensland Parliament in Brisbane. Picture: NCA NewsWire / Glenn Campbell

It is understood an individual tenant who signs two successive leases within a 12 month period – for example six months and then another six months – cannot be subject to a rental price hike under the reforms.

The government will introduce legislation to parliament during the next sitting in April, with the changes expected to come into effect from July 1.

Speaking in parliament on Tuesday, Ms Palaszczuk said the shake-up was a “wake-up call” for those landlords who did the wrong thing.

“Reducing the frequency of increases from six months to 12 months is also consistent with most other jurisdictions throughout the country,” the Premier said.

“We must act and will act to deliver reforms that balance the rights and interests of Queenslanders who rent and property owners to sustain healthy rental supply.

“This is fair and it is required at a time when we have seen the cost of living soar and families continue to struggle.”

Queensland Council of Social Service chief executive Aimee McVeigh said any additional protections for renters was “really important”.

“What we do know is that a huge number of Queenslanders rent, and rent inflation has increased in Queensland more than any other jurisdiction,” she said.

Aimee McVeigh from QCSS speaks to the media after a housing shortage round table discussion at Queensland Parliament in Brisbane. Picture: NCA NewsWire / Glenn Campbell

“I guess the question is how much is this going to protect renters if it doesn’t set a limit on how much rent can be increased by.”

Ms McVeigh says her organisation wants a rent cap similar to what occurs in the ACT, where rent increases can only be 10 per cent more than the rate of inflation.

Real Estate Institute of Queensland chief executive Antonia Mercorella said the industry was caught off guard by the rental announcement and questioned why the government was reluctant to act swiftly on other potential solutions.

She said the industry group had been given assurances the rental reform “was not on the cards”.

“We were surprised to see that and … that was a very quick decision,” Ms Mercorella said.

“It is interesting to see that, in this particular space, the government is prepared to act very swiftly.

“We’d like to see that kind of swift action taken in relation to other initiatives and other reforms outside of this space.”

Tenants Queensland chief executive Penny Carr welcomed the limits on the frequency of rent increase, but made a renewed call for rental price caps to be introduced.

Leading independent economist Saul Eslake said the policy was more reasonable than the initial reform floated by the Premier to limit the size of the rent increase.

As stakeholders gathered for the latest housing roundtable, Ms Palaszczuk also announced a $28m Immediate Housing Response for Families (IHRF) package which will kick off from next financial year.

“These extra funds will provide more than 600 emergency hotel accommodation places across Queensland, rental and bond support payments to help tenants keep a roof over their head, and food relief services to help renters put food on the table,” she said.

The funds are an extension of the $26m the government had committed towards the IHRF package for the 2022-23 financial year.

“As at 28 February 2023, the IHRF package has assisted more than 4000 Queensland families with over 44,300 nights of accommodation,” a Housing Department spokesman said on Tuesday.