Meg Barrett,
Investment Property Consultant at Image Property.
State Parliament Passes New QLD Rent Increase Legislation
[lwptoc]State parliament has passed New QLD Rent Increase Legislation, limiting increases to once per year, effective from 1 July 2023, bringing them in line with other Australian jurisdictions.
Under the current Residential Tenancies and Rooming Accommodation Act (RTRA), rent increases cannot be less than 6 months. However, from 1 July 2023, rent increases are to be not less than 12 months. The new QLD rent increase legislation applies to both existing and new tenancies, ensuring that all renters in Queensland receive the same protections.
The new law protects both existing and new tenants, ensuring all renters in Queensland receive equal protections. This 12-month minimum period will apply in cases where at least one tenant’s right to occupy the property continues, even if the property ownership or management changes.
While there are no changes to limit the amount of rent increases, the legislation aims to provide greater stability and certainty for renters facing rising rental costs and market uncertainty while addressing the cost of living pressures. The new law allows landlords to increase rent in line with market conditions but requires greater notice and stability for tenants.
How the New QLD Rent Increase Legislation Affects Different Rent Increase Scenarios
As a property owner or renter in Queensland, it’s important to understand how the new rent increase legislation may affect different rent increase scenarios. Here are some examples:
Scenario 1:
If your agreement started on 15th February 2023 and rent is scheduled to increase with a new (renewal) agreement on 15th August 2023, the rent increase is ineffective. You cannot increase rent until 15th February 2024, as the new legislation requires a 12-month minimum period between rent increases.
Scenario 2:
If you have an existing agreement in place that started in September 2022 and the rent increase is due in September 2023, the increase is effective as it is more than 12 months, keeping in mind that rent increases can only occur once every 12 months under the new legislation.
Scenario 3:
If you have a 12-month agreement that started on 10th April 2023 and there is a rent increase due on 10th October 2023, the increase is ineffective. You cannot increase rent until 10th April 2024, as the new legislation requires a 12-month minimum period between rent increases.
Scenario 4:
If a 6-month tenancy ends on 20th July 2023 and all tenants are vacating, and new tenants are moving in, rent can be increased for the new tenants. However, if at least one tenant’s right to occupy the property continues, the new 12-month minimum period applies.
Overall, the new QLD rent increase legislation is expected to provide greater certainty and stability for both renters and property owners in Queensland.
If you need any assistance with your rental property, or would like to know more about the QLD rent increase legislation, please get in touch with the friendly team at Image Property.
