How much will new rental laws cost Toowoomba Landlords?
There are new rental laws coming on the 1st of October 2022. Here is a summary of what you need to know.
I realise it is a lot of text to read. Other articles will deal with each issue in more depth.
Ending A Tenancy (Where there is no breach of the tenancy)
Changes have been made to the grounds under which a notice to leave can be given to end a tenancy agreement. There are some new grounds and some changes to notice periods.
The new grounds - all with 2 months notice given include:
- for the sale of the property
- demolition, significant repairs/renovations
- change of use
- you or a close relative need to move in or
- that it the end of the fixed term agreement. (this will be the one most used)
It does mean, that there is no longer the ability to end a periodic (month to month) agreement “Without Grounds” as we do now—it must fit one of the reasons outlined above and if it doesn’t, the periodic tenancy may never end. There are criminal penalties for the misuse of the reasons and you can be fined nearly $7000.
We strongly recommend that no tenant is on a periodic lease. To facilitate the tenants staying on fixed term leases we will be seeking your lease renewal instructions 3 months or more out from the end of the lease. We will be issuing a notice to leave at that time with the lease renewal offer so the agreement either ends or the tenants sign the new agreement. We will be communicating the reasons why to the tenants but ensuring you keep control of the process.
Tenants Right to End Tenancy
Within the first three months, a tenant can apply through the courts (QCAT) for a termination order if they believe they have been given false or misleading information about the condition of the property, it’s inclusion & services, a matter relating to the property that is likely to affect a tenant’s quiet enjoyment or they have not been given all relevant documents such as by-laws, pool certificate or a copy of their agreement.
Within the first seven days, a tenant can issue a notice of intention to leave because the property is not fit to live in, property or inclusions are not in good repair, there is a breach of law regarding safety or health of a person, or the property does not comply with new minimum housing standards.
A notice of intention to leave can also be issued in the event a co-tenant dies and continuing the tenancy agreement would be impractical or cause hardship.
Maximum Spending Limit for Emergency Repairs
In the event an emergency repair is not actioned in a reasonable time, tenants can now spend 4 weeks rent on having the issue fixed themselves, up from 2 weeks now. Agencies have been given the same amount.
However, we have never had a tenant need to do this so our current practice will not change—we will action emergencies immediately whilst we seek further instructions from you in business hours.
Repair Orders
Should a tenant report a repair issue and it is not attended to in a reasonable time—Tenants can apply through the courts (QCAT) if the property or it’s inclusions are in need of repair and request the court makes a repair order on the owner with specific instructions on what is to be repaired, when and what if any compensation or reduction in rent should be paid to the tenant. Failure to comply with a repair order without a reasonable excuse is a criminal offence with a penalty of nearly $7000.
Retaliation
Should a tenant believe they have been issued a notice to leave because of an action they have taken such as requesting repairs and maintenance and other actions, they can apply through the courts (QCAT) to have the notice to leave set aside if it is considered retaliatory in order to intimidate or punish the tenant.
Pets
Properties can not be advertised as no pets allowed. Owners can only refuse a pet request for specific prescribed reasons. These are:
- keeping the pet would exceed a reasonable number of animals being kept at the property.
- the property is unsuitable for keeping the pet because of a lack of appropriate fencing, open space or another thing necessary to humanely accommodate the pet
- keeping the pet is likely to cause damage to the property or inclusions that could not practicably be repaired for a cost that is less then the amount of the rental bond
- keeping the pet would pose an unacceptable risk to the health and safety of a person
- keeping the pet would contravene a law or body corporate by-law
- tenant has not agreed to the reasonable conditions proposed by you for approval to keep the pet
- the animal in the request is not a pet
However, damage caused by a pet will not be considered fair wear and tear—it is damage and must be repaired by the tenant. The current process applies though for depreciated values to be used on items a tenant must replace such as carpet.
If a pet request is made– a response must be made in 14 days or the pet is considered approved.
Body corporate law is different to tenancy law and there are some grey areas. We’ve been told they may not to be able to have blanket bans on pets either so we have to see how pets in body corporate units work out.
There are some conditions that can be put onto pets such as dogs being kept outside (cats can’t be outside—it contravenes Council by laws), flea treatments and carpets professionally cleaned if the pet is allowed inside.
Domestic Violence Laws
There are changes which allow a victim of domestic violence to end their share of the tenancy and receive their bond back. The remaining tenant must then top up the bond to the full amount.
Changing Locks
There are other minor changes around who pays for lock changes but it is more clarifying when the tenant must pay and removing grey areas.
Return of entry condition report
Tenants used to have 3 days to return their entry condition report—this is being extended to 7 days.
Minimum Housing Standards
Talked about for many years—these are in the October 1 laws but do not start until September 2023 so will leave details until future newsletters.
SUMMARY: They sound harsh, the balance is tipping to the tenant further— but please be reassured we will support you through this. Bronwyn, Lachlan and the team have and continue to receive training and understand a common sense approach is going to be needed. You are fortunate to have a mature and experienced property management team!
All of these provisions start 1st October 2022—no matter what the current tenancy agreement says!
Bronwyn Evans
McAdam and Turnbull Realty