The Queensland Labor government says new rental reforms will strengthen tenants’ rights, but a leading real estate group says there are problems with the ban.
Labor Minister for Housing Meaghan Scanlon spoke about the new Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill (the RTRAOLA Bill) on May 24, after it was approved in Parliament a day earlier.
Under the reforms, all forms of rent bidding will be banned, a minimum 48-hour notice for entry must be given to tenants, ensuring renters have a “fee-free way” to pay their rent will be mandatory, as well as requiring bond claims to be backed by evidence.
In a statement, Ms. Scanlon said the reforms were about making a fairer system for the one in three Queenslanders who are renters.
“It means renters won’t have to bid more than advertised to secure a rental, that they’ll have their privacy protected, and a new code of conduct will stamp out unprofessional practices,” she said.
“These important protections go alongside cost-of-living support we are rolling out for Queenslander renters through our homes for Queenslanders plan.”
Further amendments in the reforms will include limiting re-letting costs based on how long is left on a fixed-term lease, and ensuring rent can only be increased once a year.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said one of the biggest wins in the reforms was continuing professional development (CPD) for all real estate workers.
“Following a decade of advocacy from the REIQ, it’s momentous to see the introduction of mandatory CPD, requiring ongoing education and training in order to maintain a real estate licence and registration and therefore lifting the standard of professionalism across Queensland,” she said in a statement.
REIQ Cites ‘Flaws’ in New Laws
However, the REIQ CEO said the organisation held concerns over what it termed “significant administrative flaws” in the system.“Previously, there was no maximum rental bond if weekly rent was more than $700, but now a maximum limit of four weeks rent will apply to all general tenancies irrespective of the weekly rent,” Ms. Mercorella said.
“Our key concern is that this may lead to an avalanche of refund requests from tenants with bonds higher than the new limit.
“This will create a significant administrative burden on property managers and the RTA, which could easily be avoided if the new limit only applied to agreements made from the commencement of the new laws.”
Ms. Mercorella said some changes would create little relief for tenants, such as the reformulation of reletting fees that could cost renters more.
She said a move to attach rent increases to properties, rather than tenancies, could cause rents to inflate as property owners would attempt to obtain funds per increase.
“Given how imperative tenancy laws are to the health of the rental market, we are disappointed with how carelessly the government continues to treat them, and how indifferent the Opposition has been in moving amendments on this Bill considering the values and interests they supposedly represent,” Ms. Mercorella said.
The government says the passing of these reforms followed extensive engagement with renters, rental property owners and managers, peak and advocacy groups and the broader sector.
But the REIQ says it feels there was a lack of consultation.
“The RTRAOLA Bill was hastily drafted and tabled without consultation with key stakeholders,” Ms. Mercorella said.
“Many of these errors and omissions could have been avoided if (the) government had engaged in stakeholder consultation up-front.”
The passage of the Bill also enables the government to develop a framework for parties to agree on installing modifications in rental properties, a Code of Conduct for the rental sector and a Portable Bond Scheme.
Tenancy Advocates Say Reforms Don’t Go Far Enough
Tenancy Queensland (YQ) labelled the reforms “a good start” with some wins for renters, but said much more should be done.CEO Penny Carr said there needed to be limits imposed on how much rents could be raised by.
Ms. Carr also called on the government to outlaw evictions “without grounds” because arbitrary evictions often left tenants too afraid to pursue rental issues for fear of retaliation.
“TQ receives inquiries from Queenslanders affected by this issue every day,” she said.
“The ending of tenancies with no reasonable grounds is severely impacting on renters’ ability to provide a stable roof over their heads and that of their families.”
