In May 2024, the Queensland Parliament passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024, bringing with it significant changes to the rental landscape. While the first tranche of changes came into effect on 6 June 2024, more reforms are set to roll out on 30th September 2024, with further changes coming on 1 May 2025.

Let’s dive into the important reforms that property owners, managers, and tenants need to be prepared for in this upcoming stage.

Key Changes Starting 30th September 2024

  1. Evidence for Bond Claims and Disputes
    Property owners and lessors will now have a stricter timeframe for bond disputes. They will need to provide supporting evidence within 14 days of making a bond claim or dispute resolution request. This ensures transparency in the process, offering greater protection for tenants and a clearer framework for resolving disputes.
  2. Removal of Maximum Bond Limit Thresholds
    The previous thresholds on bond limits based on rental prices will be removed. From September 2024, a maximum bond equivalent to four weeks’ rent will apply to all rental properties, regardless of the weekly rent amount. This simplifies the bond system and ensures a standard approach across all tenancies.
  3. Bond Refund When Renewing a Tenancy
    In some cases, tenants will be allowed to seek a refund of any excess bond held when renewing their tenancy. This will particularly apply if the amount of bond being held exceeds the new bond limit. It’s a move that aims to prevent over-bonding and return funds to tenants when appropriate.
  4. Bills for Service and Water Consumption Charges
    Property owners will now need to ensure that tenants receive any service charge or water consumption bill within four weeks of the owner receiving it from the supply authority. If the bill isn’t provided within this timeframe, the tenant will not be required to pay for the charges. This change encourages timely billing and ensures tenants aren’t left with surprise charges months after they were incurred.
  5. Partial Billing for Water Consumption Charges
    If a water bill covers a partial period, tenants will not be required to pay for the charges unless the property manager or owner calculates the water consumption according to the rules outlined in the RTRA Act. This provides further clarity for tenants in ensuring their water usage is fairly accounted for.
  6. Reletting Costs for Breaking a Lease
    When a tenant breaks their lease, reletting costs will now be calculated using a statutory formula. This change aims to standardize the process and ensure that reletting costs are fair and consistent across different tenancies, reducing the chances of disputes.

What Do These Changes Mean for Property Owners and Tenants?

Property Owners and Managers

These reforms place a heavier emphasis on ensuring transparency and compliance with time-sensitive processes, like bond claims and billing. Property owners and managers will need to be more diligent in meeting the deadlines outlined in these new laws. The removal of bond thresholds simplifies bond management but may also require some adjustments for properties previously not subject to this cap.

Tenants

For tenants, the changes largely offer greater protection and more clarity in their dealings with property managers. From the ability to seek refunds on excess bond to receiving timely bills for service charges, these reforms aim to create a fairer rental environment. The changes to reletting costs also ensure tenants who break their lease are not overcharged, with fees being calculated according to a clear, statutory formula.

Preparing for the New Reforms

With these changes set to take effect soon, both property owners and tenants should familiarise themselves with the details. Property managers may need to adjust their processes to ensure compliance with the new timelines for bond claims and billing. Tenants should keep an eye on any communication from their property managers about bond refunds or billing, particularly if their tenancy is renewed.

The Stage 2 rental law reforms coming into effect on 30th September 2024 represent a significant shift towards a more transparent and fair rental system in Queensland. Whether you’re a property owner, manager, or tenant, understanding these changes is essential to ensure a smooth transition.

At Pam Court Realty, we’re here to help you navigate these new reforms and ensure that you’re fully compliant and informed. Feel free to contact us for any questions or advice about how these changes may impact your tenancy or rental property.

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