Rental Reform 2021 - An Agent’s Perspective

New legislation was passed this year on October 14 with staged implementation over a 3 year period.?They are designed to ensure Queenslanders have access to safe, secure and affordable housing while strengthening confidence in the housing market.?The goal is to create balance for both lessors and lessees in both protections and empowerment. Having perspective is important, there has been much discussion surrounding the changes. At this juncture, nothing has been implemented that can’t be managed with a good agent and some forethought.

The government states:

“The Housing Legislation Amendment Bill 2021 (the Bill) delivers key objectives of the Housing Strategy including:

? Modernisation - a commitment to reviewing and modernising rental laws to better protect tenants and lessors and improve housing stability in the rental market.

? Connections - ensuring that vulnerable community members are supported to sustain tenancies in appropriate and secure housing that facilitates social, economic, and cultural participation.

? Confidence - supporting a fair and responsive housing system through reforms to legislation and regulations that enhance the safety and dignity of all Queenslanders and promote the provision of a range of housing options that meet the diverse needs of Queenslanders.”

The reforms have been introduced in four areas: ?

Domestic and Family Violence (DFV) protections came into place from October 20, 2021:

·????????Property owners must now provide safeguards and security for tenants having to break their lease as a result of domestic violence.??

·????????For vulnerable and at-risk tenants, this will be a true help in an otherwise traumatic and financially difficult time. ?

·????????For Landlords, it is important that you understand the implications as tenants can now leave immediately (with 7 days’ notice), accessing any bond contribution they may have made.?

·????????Tenants will NOT be liable for property damage as a result of DV and can also change locks without seeking prior permission.?

·????????There are, of course conditions that have to be met.

*** It is critical that property owners/managers maintain the privacy of a tenant/resident who is experiencing domestic and family violence to ensure their safety.?Penalties apply if the legislative requirements are not followed.??

Ending of Tenancies - date of implementation yet to be set. These changes have been orchestrated to make ending of tenancies fairer for all parties.?

·????????Landlords can no longer end a periodic tenancy (ie. no fixed term lease) without grounds, meaning they must provide a reason.

·????????Tenants do not need to provide a reason, but appropriate notice is required.?

·????????New grounds have been introduced for both lessors and lessees, ensuring that both parties have fair reasons to conclude a tenancy.?

·????????If a renter believes that they have been issued a notice to leave as retaliation for exercising their rights, such as repairs or condition of the property, they can apply to have the notice to leave set aside.?

Renting with Pets - date of implementation to be announced.??Many investors are up in arms with respect to the changes to pets in rental properties, but in reality, it’s not all bad.

·????????Property owners must provide reasonable grounds to deny the keeping of a pet in a property and must respond within 14 days or consent is implied.?

·????????Investors can still have a say about pets and are allowed to set conditions around the pets, however rent increases and pet bonds are not allowable.?

·????????If you do not wish to have pets in your property, speak with your Property Manager.?It will be important to manage the leasing of the property carefully and be proactive to ensure you do not discriminate.?

·????????Note:?investors and property managers do not need to give a reason for unsuccessful applications.?As such, you can simply decline any application without cause at your discretion. This goes for pets or any other reason.

·????????For Landlords, it will be important to be specific and seek advice in how to structure pet approvals and conditions to ensure that the interests of both your tenant and the maintenance of your property are catered for.?Tenants are liable for any and all damage resulting from pets, this is NOT classed general wear and tear.

Minimal Housing Standards - will apply to all new leases entered into from 1 September 2023 and all tenancies from 1 September 2024.?A set of prescribed minimum housing standards will be set in place that must be met.?

·????????These will ensure renters are safe, secure and their properties are functional

·????????This should not place additional burden on property owners, but will provide confidence for tenants that they can request repairs as and when required.?

·????????Property managers will also be granted authority to engage emergency repairs for up to the equivalent of 4 weeks’ rent.

If you are a landlord, or tenant, Elever Property Group only employ expert property managers only employ property managers with experience across legislation and the marketplace.?We are always happy to discuss any of your concerns regarding these changes and how they may affect you.

You can access more details via https://www.rta.qld.gov.au/about-us/legislation/rental-law-reform or https://www.chde.qld.gov.au/about/initiatives/rental-law-reform

In addition, if you are considering selling your property, not happy with your current property manager or just have some questions I’d love to chat.

Ryan Barabas of Elever Property Group is a leading professional in the Brisbane Property Market.?For assistance with any matters regarding your property, do not hesitate to contact Ryan on 0439 715 742.