New Changes to Residential Contracts & Rent Increases

Have you heard about the latest changes to the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act) impacting residential contracts and rent increases?

Residential Contract Changes

The Real Estate Institute of Queensland (REIQ) and Queensland Law Society (QLS) are responsible for drafting new editions of the REIQ contract. As of 7 June 2024, their latest collaboration resulted in an update to contracts for Residential House and Land (19^th edition) and Residential Lots in a Community Titles Scheme (15^th edition).

These have been updated to accommodate for the changes to the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act), focusing on enhancing transparency and protection for both buyers and sellers.

These contracts include the following changes:

• New warranties provided by the Seller on the accuracy of information to Buyers;
• Disclosure obligations for prior or existing tenancy agreements up to 12 months prior to the Contract Date, along with the day of the most recent rent increase;
• Buyer’s right to compensation if the above information is inaccurate;
• The Seller must also provide evidence to the Buyer of the last rental increase on or before settlement;
• If the Seller does not provide evidence of the rent increase, the Buyer may terminate.

RTRA Act Amendments

The RTRA Act has been amended by way of assent of the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024. The amendments respond to Queensland’s call for rental law reform – to strengthen renters’ rights, encourage private investment and offer improved channels for resolving tenancy disputes. Along with the Queensland Government initiative, Homes for Queenslanders, this policy change has brought a string of new changes to the legislation, including:

• A ban on all forms of rent bidding;
• An annual limit for rent increases on the property, not the tenancy;
• A portable bond scheme, allowing renters to transfer their bond when moving from one rental property to another;
• Changes to rent in advance, with the new maximum being no more than one month;
• The bill also prevents owners or agents from accepting higher rent than that of the advertised price.

How Can We Help?

This is a bite-sized summary of the new changes to the RTRA Act and some REIQ contracts. There are likely many more changes to come, as Queensland navigates and adjusts to the rental crisis and evolves with the needs of tenants and landlords in a rapidly changing housing market.

For legal guidance navigating these updates and ensuring compliance with the revised REIQ contracts, contact our Property Law Solicitors at Greenhalgh Pickard.