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CHANGES TO RENT INCREASES

The Palaszczuk Government passed new legislation last Friday limiting the number of times a landlord can increase rent.

Here’s what you need to know:

  1. A limit to rent increase frequency to once a year will come into effect from 1 July 2023. Current laws around rent increases continue to apply until this date.  
  2. Any rent increase issued after 1 July 2023 will only be valid if it has been 12 months since the previous rent increase.
  3. The 12-month minimum period continues to apply if there is a change to the rental property owner or manager or, if during the tenancy if at least one tenant or resident is the same when the agreement is renewed. It also applies if there is a change of ownership of the property.
  4. More frequent rent increases written into tenancy agreements prior to 1 July 2023 will not apply. 
  5. The annual limit on rent increase frequency will apply to all new and existing tenancies.  
  6. Once the new legislation comes into effect, rent may only be increased within a 12-month period if; there is a new tenancy agreement and none of the tenants are the same as those on the previous agreement.  

Please see a summary of legislation changes below and a copy of the Amendment Bill in the link below.

LocalGovernmentElectoralandOtherLegislationExpenditureCapsAmendmentBill2022GovtACIDcb14.pdf

If you have any questions, please don’t hesitate to contact me.

 

The Local Government Electoral and Other Legislation (Expenditure Caps) Amendment Bill 2022 introduces amendments to several Acts including the Residential Tenancies and Rooming Accommodation Act 2008 and its Regulation 2009. The amendments mainly focus on rent increase regulations, minimum periods before rent can be increased, and changes in rental bond requirements. The provisions also introduce transitional provisions for existing rental agreements and clarify the ending of residential tenancy agreements.

Amendments to Residential Tenancies and Rooming Accommodation Act 2008

- Section 91 (Rent increases): Changes the minimum notice period for rent increases to a minimum of 2 months or the end of the minimum period under section 93, whichever is later.

- Section 93 (Minimum period before rent can be increased): Increases the minimum period for rent increases from 6 months to 12 months for residential tenancy agreements.

- Section 105 (Rent increases): Changes the minimum notice period for rent increases in rooming accommodation agreements to a minimum of 4 weeks or the end of the minimum period under section 105B, whichever is later.

- New Section 105B (Minimum period before rent can be increased): Introduces a 12-month minimum period for rent increases in rooming accommodation agreements.

Amendments to Residential Tenancies and Rooming Accommodation Regulation 2009

- Schedule 1, Part 2, Clause 10 (Rent increases): Updates the minimum period for rent increases in residential tenancy agreements from 6 months to 12 months.

- Schedule 4, Part 2, Clause 8 (Rent increases): Updates the rent increase provisions for rooming accommodation agreements to align with changes made in the Act.

Transitional Provisions

- Sections 575: The amended sections 91, 93, 105, and 105B apply to all residential tenancy and rooming accommodation agreements in effect after 30 June 2023, regardless of when the agreements started.

Clarification on Ending of Residential Tenancy Agreements

- Section 277: Amendments to section 277 apply to residential tenancy agreements ending after 30 June 2023, with the previous version of the section still applicable to agreements ending before that date.