The Real Estate Institute of Queensland (REIQ) has issued a guide outlining the key information landlords should be aware of regarding the alterations in tenancy laws pertaining to rent increases.
On April 18, 2023, the Deputy Premier verbally proposed amendments to the Local Government Electoral and Other Legislation (Expenditure Caps) Amendment Bill 2022, which aim to modify the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act) and Regulation.
These legislative changes encompass modifications to rent increase provisions and other aspects of the Residential Tenancies and Rooming Accommodation (RTRA) Act.
To illustrate these changes, the REIQ has presented two scenarios:
Scenario A:
You are managing a property with a tenant under a fixed-term tenancy agreement that began on January 10, 2023, and will end on July 9, 2023. During this period, the rent was set at $540.00 per week.
Following your standard procedures, you contacted the client three months before the agreement’s expiry (April 9, 2023) and received instructions to offer a 12-month renewal with a $20 per week rent increase, in line with market value. The tenant agreed to the rent increase and accepted the renewal for another 12 months. Both parties signed the new Form 18a.
Would this rent increase be considered valid?
No, this rent increase would not be considered valid. Despite the agreement being “new,” the tenant remains the same, thereby subject to the 12-month rule. As a result, the earliest date for implementing a rent increase would be January 10, 2024, as the original tenancy began on January 10, 2023, and at least 12 months must pass before a rent increase can be imposed.
Scenario B:
You are managing a three-bedroom townhouse occupied by three tenants who share the tenancy. Two of the tenants initially moved into the property on February 18, 2021.
The third tenant joined and was listed on the lease during a renewal on February 18, 2023. The current tenancy agreement is for six months, expiring on August 17, 2023. Currently, the rent stands at $420.00 per week, increased from $390.00 per week on February 18, 2023. Due to a disagreement, the tenants decide not to renew the tenancy.
What if one or more of the co-tenants decide to remain in the property?
Rent cannot be increased until 12 months have passed from when the renewing tenant initially paid the increased rent. In this case, the rent would remain at $420.00 per week until February 18, 2024.
DISCLAIMER: This article is provided for information purposes only and does not constitute legal advice and should not be used as such. Formal and independent legal advice should be sought in particular matters.
