As of 6 June 2024, changes are being made in Queensland’s renting laws, which will affect property investors and their investment properties. But understanding what these changes are all about is important for you, property investors, so that you can continue to secure maximum returns for your business.
This article will offer some useful insights into how these changes affect property investors on the Gold Coast.
The New Renting Laws: Key Changes
The Residential Tenancies Authority (RTA) stated, “The changes to renting laws in Queensland will ensure all rental properties meet minimum housing standards and provide greater protections for tenants.” To further understand about what the RTA meant with this statement, here are the main updates on the renting law changes:
1. Minimum Housing Standards
One of the most significant changes is the introduction of minimum housing standards. These standards ensure that rental properties are safe, secure, and habitable. Key requirements include:
- Adequate plumbing and drainage
- Mould and damp-free premises
- Structural soundness of the property
- Safety and security measures, such as functioning locks on doors and windows
For property investors, this means regular maintenance and significant upgrades to meet these standards.
2. Pet Requests During Tenancy
Tenants can now request to keep a pet using the Request For Approval to Keep Pet at Premises (Form 21). This form must be submitted to the property manager/owner via email, in-person, or post. Each pet requires a separate form with detailed information such as type, weight, and size to assist the property manager/owner in making an informed decision.
The property manager/owner must respond in writing within 14 days. If they do not respond within this timeframe, the pet request is considered approved. Approved pets do not require re-approval if the tenancy is renewed or extended, even if there’s a change in property management or ownership.
3. Rent Increases Limited
Rent increases are now limited to once every 12 months, and tied to the property not the tenancy. This regulation aims to prevent unreasonable rent hikes and ensure that tenants have predictable living costs.
4. Domestic and Family Violence Protections
Tenants experiencing domestic and family violence now have greater protection. They can end their tenancy quickly and without financial penalty if they provide appropriate evidence. This change supports tenant welfare but requires landlords to be prepared for sudden lease terminations.
Impact on Property Investors
These changes pose some challenges for property investors but also present several opportunities. Here are our tips to help you adapt to the changes:
Ensuring Compliance
First and foremost, ensure your properties comply with the new minimum housing standards. Conduct thorough inspections and address any issues promptly. Non-compliance can lead to penalties and reduced tenant interest in your properties.
Adjusting Lease Management
With extended notice periods and limited rent increases, effective lease management becomes necessary. Plan your tenancy agreements with these timelines in mind and communicate clearly with tenants to maintain good relationships and avoid disputes. It’s essential you work with the best property management team to handle these time frames.
Emphasising Tenant Relations
Building strong relationships with tenants is more important than ever. Happy tenants are more likely to renew their leases, reducing vacancy rates and ensuring consistent rental income. Provide excellent customer service, be responsive to maintenance requests, and ensure transparent communication.
Making Use of Expert Property Management
Utilising expert property management services is significantly helpful in making strategic decisions amid the changes on rental laws. At Astute Realty, we specialise in managing properties on the Gold Coast, ensuring that all legal requirements are complied while also maximising investment returns.
Having a property manager who understands legislation is more important than ever. I don’t think the legislation is bad for owners, I just don’t think it’s going to achieve what the Queensland Government is hoping it will achieve. Twelve-month rent increases attached to the property can almost be to the advantage of the landlord. If you’ve got a break lease, you can manipulate the dates of tenancy to allow for an increase in the tenancy. It might actually be to the tenant’s detriment because the owner will price at the highest point. For landlords who have agents who understand the legislation, they’re going to be better off.
However, these changes might scare off investors, making the supply of rental properties in Queensland even worse. This potential reduction in available rental properties could lead to increased competition among tenants, further driving up rent prices.
The new renting laws in Queensland bring massive changes that property investors must adapt to. Through understanding these rules and taking proactive steps to comply, you can continue to achieve strong returns on your investments. Astute Realty’s expert property management services can provide the support you need so that you will be able to take control of your investments amid the changes.