Changes to Tenancy Laws – What Does it Mean for You?

The start of 2021 has seen new changes to the tenancy laws in both Queensland and Victoria. We discuss the changes coming up in both states and what it means for both landlords and tenants.

Queensland Reforms

The Queensland Government has recently introduced changes to the Queensland Tenancy Laws to the following 4 areas:

Safety and Security

  • Tenants have the right to make changes to a property without the owner’s consent if the changes relate to health and safety or security in the property such as deadlocks and handrails.
  • Rental properties must meet minimum building standards, be structurally sound and weatherproof. If the rental property does not meet these standards, maintenance must be carried out prior to it being rented or if currently rented, a reduced rent is put in place until maintenance has occurred.

Protection Against Domestic Violence

  • Those experiencing dosmetic violence are able to give seven days written notice to vacate a property.

Renting with Pets

  • Those seeking to rent with a pet cannot be unreasonably refused. Landlords can, however, implement a pet bond to accommodate any damage caused by the pet.

Termination of Tenancies

  • Landlords cannot evict without reasonable cause. Reasonable causes include the need to move into the property, the property has been sold or is needing to be vacant for sale or the tenant has breached the contract.

The reforms have been implemented to create a fairer and safer renting environment for tenants, however, there is negative investor sentiment across the Queensland marketplace.

Fears that investor levels may drop from the average mum and dad investor with stricter investing guidelines and landlord rights.

This decline in investor interest could then have a negative flow-on effect with increased rent due to decreased investor activity, a decrease in construction activity and employment across the state.

Our partner PropertyMe gives a further comprehensive look into the QLD reforms and the effect on both tenants and landlords.

Victorian Reforms

New Victorian reforms will come into action on the 29th March, 2021 focusing on minimum rental standards, modifications to rental properties and rental form updates.

Key reforms include:

  • Agents are unable to entice tenants with misleading information and must advise of any intent to sell the property.
  • Tenants must only undertake a professional clean to the property if it is required to bring the property back to its original state (minus wear and tear).
  • Properties must be advised at a fixed price and agents cannot solicit a bidding war.
  • Rent increases can only be implemented once a year.
  • Tenants will require consent to keep a pet. A landlord may object but needs to be done within 14 days
  • Tenants will have clearer obligations regarding keeping the state of the property, despite its age.
  • Rental properties must meet minimum standards including a vermin-proof rubbish bin, functioning toilet, adequate hot and cold water connections in the kitchen, bathroom and laundry, external windows with functioning latches, a functioning cooktop, oven, sink and food prep area, functioning heating in the property’s main living area, window coverings to ensure privacy in any room.
  • Landlords need to give tenants 7 days written notice to enter the property.
  • If a property is being sold during a tenancy, landlords have the right to conduct sales inspections (including opens) up to twice a week.
  • Landlords cannot evict without reasonable cause.
  • Landlords can issue an ‘end of fixed term’ notice to vacate at the end of the first fixed term, but not for any subsequent fixed terms.
  • Tenants subjected to domestic violence can challenge the notice to vacate terms.

It is advised to keep up-to-date with your rights and responsibilities as a landlord or a tenant with your relevant state tenancy governing authority.

Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.