New Rental Reforms in Queensland: Government Claims Fairer System, but Real Estate Body Points Out Flaws

New Rental Reforms in Queensland Aim to Strengthen Tenants’ Rights

Introduction:
The Queensland Labor government has recently implemented new rental reforms that are intended to strengthen tenants’ rights. While the government claims that these reforms will create a fairer system for renters, the Real Estate Institute of Queensland (REIQ) has expressed concerns about several aspects of the new laws. This article will delve into the key details of the reforms, analyze the potential impact, and examine the differing perspectives on their effectiveness.

Reform Highlights:
Under the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill (the RTRAOLA Bill), rent bidding in all forms will be prohibited, a minimum 48-hour notice for entry must be provided to tenants, and a “fee-free way” to pay rent will become mandatory. Additionally, bond claims will require supporting evidence. These changes aim to ensure that renters no longer have to bid above the advertised price to secure a rental, protect their privacy, and eliminate unprofessional practices, as stated by Labor Minister for Housing Meaghan Scanlon.

Analysis:
The introduction of mandatory continuing professional development (CPD) for all real estate workers is one of the significant wins of these reforms, according to Antonia Mercorella, CEO of the REIQ. This requirement for ongoing education and training is expected to enhance professionalism across Queensland’s real estate industry. Furthermore, the extension of the period during which real estate agents can store tenant information from three years to seven years is seen as a positive change by Ms. Mercorella.

However, the REIQ has raised concerns about what it considers “significant administrative flaws” in the new system. One such flaw is the introduction of a maximum limit of four weeks’ rent for rental bonds, regardless of the weekly rent amount. The REIQ worries that this could lead to a surge in refund requests from tenants with bond amounts exceeding the new limit, resulting in an administrative burden for property managers and the Residential Tenancies Authority (RTA).

The reformulation of reletting fees is another aspect that may not provide sufficient relief for tenants, as it could potentially increase their costs. Additionally, the decision to link rent increases to properties rather than tenancies may result in inflated rents, as property owners could exploit this opportunity to maximize their profits per increase.

The REIQ expresses disappointment with both the government and the Opposition for what it perceives as a lack of care and consultation throughout the drafting and tabling of the RTRAOLA Bill. According to Ms. Mercorella, if key stakeholders had been consulted from the beginning, many of the errors and omissions in the legislation could have been avoided.

Tenant Advocates’ Perspective:
Tenancy Queensland (TQ) acknowledges that the reforms are a step in the right direction for renters but argues that more needs to be done. CEO Penny Carr emphasizes the importance of imposing limits on rent increases to protect tenants from exorbitant hikes. TQ also calls for an outright ban on evictions without grounds, as arbitrary evictions create a climate of fear that deters tenants from addressing rental issues due to concerns about retaliation.

Conclusion:
While the Queensland government claims that the new rental reforms will create a fairer system for renters, the REIQ and Tenancy Queensland have expressed concerns about various aspects of the legislation. Although the reforms have introduced positive changes such as mandatory CPD for real estate workers, extended storage periods for tenant information, and enhanced privacy protections, flaws in the system, including potential administrative burdens and increased costs for tenants, have raised doubts about their effectiveness. Further dialogue and consultation with key stakeholders may be necessary to address these concerns and ensure that the reforms truly benefit both renters and property owners.