Qld rent reforms: All the sweeping changes that could shake up the industry

Landlords would be forced to prove damage before withholding bond refunds and renters would be empowered to hang paintings under options considered for stage two of the Queensland government’s rental law reform.

The five areas open for public feedback are: installing modifications; making minor personalisation changes; balancing privacy and access; improving the rental bond process; and fairer fees and charges.

Tenants in Queensland may be allowed to hang pictures without getting their landlord’s consent under proposed rental reforms.Credit: Shutterstock

Why does this matter?

Queensland is facing a housing crisis.

The latest REIQ figures shows the statewide residential vacancy rate is 0.9 per cent in the March quarter, well short of the ideal 2.6 to 3.5 per cent healthy rate, and rental prices have hit a record high.

Modifications

At present, laws allow renters and owners to agree on changes to properties - for example, handrails, lighting and security screens - and owners cannot unreasonably withhold permission.

If they cannot agree, the renter can take the dispute to the Residential Tenancies Authority (RTA), and then the Queensland Civil and Administrative Tribunal (QCAT).

If renters change the property without permission, it can be considered damage and a breach of the tenancy agreement, and they are liable to pay for repairs.

Option one: Keep the status quo, with education.

Option two: Renters seek permission but property owners could only refuse safety, security and accessibility changes on reasonable grounds, which could include an inability to safely install the changes.

Option three: Specify changes a renter could make without seeking permission after giving 14 days’ notice, and force an owner to obtain a QCAT order to prevent it.

This could include changes recommended by an occupational therapist, security screens or cameras to protect against domestic violence, securing furniture to a non-tiled wall, child safety gates or handheld shower heads.

Minor personalisation changes

Laws allow renters and owners to agree to changes - including hanging pictures, painting a wall or planting a garden - and owners cannot unreasonably withhold permission.

Option one: Status quo and education, including when withholding permission may be unreasonable.

Option two: Renters continue to require permission to make changes, but it would be unreasonable to refuse if the change would not breach laws, lead to health or safety risks, require changes to common property, create a risk of significant damage to the property, cause additional maintenance costs, and it was reasonably practical to remove.

Option three: Specify changes a renter can make without permission after giving 14 days’ notice, and require owners to seek a QCAT order to prevent changes.

This could include hanging paintings, installing a phone line or internet connection, planting a garden and applying shatter-resistant film to windows.

Balancing privacy and access

Property owners and agents have the right to enter but only after giving notice - generally 24 hours - and for specific reasons, such as repairs, to comply with smoke alarm laws, to show the property to prospective buyers or in an emergency.

Option one: Status quo, plus education.

Option two: Owners can conduct general inspections no more frequently than once every three months after at least seven days written notice; and notice for entry on other grounds would be extended from 24 to 48 hours.

Owners and managers would have to avoid frequent entry for unnecessary repairs or services the renter does not agree with; taking photos that are unnecessary to record condition, particularly if they include the renter’s personal possessions; and excessive entry to show the property to prospective buyers or renters.

Option three: General inspections once every six months with 10 days notice; and notice for other reasons extended to 72 hours.

Renters can object to advertising photos that show valuable possessions which would increase the risk of theft, and agents unable to request bank statements from prospective renters as part of applications.

Rental bonds

The maximum bond - used to cover potential rent arrears and damage - is four times the weekly rent for general tenancies, and must be lodged with the RTA within 10 days of receipt.

If weekly rent is more than $700, there is no limit on the maximum bond.

Property owners and managers are not required to substantiate any claims they make against the bond with evidence, such as cleaning or repair quotes or proof of unpaid rent.

Option one: Status quo, plus education.

Option two: Require owners to substantiate their bond claims with receipts or quotes to repair damage caused by the renter or records of unpaid rent.

Refunds would be paid directly to renters if they accessed a commercial bond product.

Option three: Owners must prove bond claims and demonstrate the renter failed to return the property to the same condition as at the start of the tenancy, repair any damage or pay unpaid rent, including by providing receipts, inspection and exit reports.

Fees and charges

Renters are concerned some managers only offer payment methods that incur fees.

Property owners are responsible for water connection charges and can pass on consumption fees to renters under certain circumstances.

When breaking a lease, renters may have to pay advertising costs, re-letting fees and any loss of rent.

Option one: Status quo, plus education.

Option two: Renters to be offered a fee-free rent payment method; utility bills must be sent within one month of receipt; and caps introduced for re-letting, for example four weeks rent if 75 per cent or more of the agreed term remains or one week if less than 25 per cent remains.

Option three: A fee-free rent payment method must be provided; and renters only pay excessive consumption charges for utilities above reasonable consumption for a comparable household.

Tenancies can continue to require the renter to compensate the owner for reasonable costs to re-let the property if the renter ends the fixed-term agreement, except for when the renter breaks the lease to access more affordable rental accommodation in the private rental market or to accept social housing, or if the renter will experience excessive hardship if they are required to pay re-letting costs.

Re-letting costs would be the lower of either the rent payable before it was re-let, or determined by the time remaining on the agreed term, for example four weeks rent if 75 per cent or more of the term remained.

What happened under stage one of the rental reforms?

Stage one reforms - which passed in October 2021 - made it easier for renters to keep a pet.

Landlords could still refuse a request to keep a pet for several reasons, including a lack of fencing or open space.

Labor’s changes also stopped landlords ending a lease without grounds. Grounds for eviction included the end of a fixed-term agreement or if the owner wished to perform significant repairs or renovations, sell or move in themselves.

Last month, the government announced it would limit rent increases to once per year from July 2023.

What happens next?

People can have their say on the options paper until May 29 by taking an online survey or writing a written submission.

Housing Minister Leeanne Enoch argued the reforms aimed to strike the right balance between the needs of the community, while supporting continued investment in the housing market.

“Many people in Queensland right now are facing housing pressures, none more so than the over a third of Queensland households who rent,” she said.