Improving rental bond process

1. Status quo + education

No change is made to Queensland’s laws. Current rental bond settings and processes will continue.

Education

Develop resources and educational materials in partnership with the sector to provide greater awareness for renters, rental property owners and managers about their rights and responsibilities regarding rental bonds and the rental bond process in Queensland, including:

• the rental bond refund process and who can make a claim against the bond the requirements that a renter must meet to be able to receive their full bond, including if they have used a commercial bond product
• the importance of having, and providing, evidence to support bond claims
• the importance of entry condition reports and exit reports, and
• best practice approaches to bonds that equally protect property owners and renters.

2. Require bond claims to be substantiated

Amend Queensland’s rental laws to:

• require property owners to substantiate their rental bond claims, and
• protect renters’ interest in the bond refund if they use commercial bond products.

The existing rental bond refund process would be retained. Rental property owners would be required to submit evidence to support any claims for bond monies to be disbursed to them when the tenancy ends, such as receipts or quotes to repair damage caused by the renter or records of unpaid rent.

Renter’s interest in the rental bond when they have accessed a commercial bond product will be protected by clarifying section 138 of the RTRA Act to apply only to assistance provided by the State under a government program or scheme. This will ensure the RTA can pay refunded bond monies directly to the renter who is a party to the tenancy agreement if they have accessed a commercial bond product and renters will remain responsible for meeting their repayment obligations to the bond supplier.

3. Require bond claims and renter’s liability to be proven

Amend Queensland’s rental laws to:

• require rental property owners or managers to prove their rental bond claims and the renter’s liability, and
• protect renters’ interest in the bond refund if they use commercial bond products.

The existing rental bond refund process would be retained. Rental property owners would be required to prove the renter had failed to meet their tenancy obligations in their claim for bond monies to be disbursed to them when the tenancy ends. Rental property owners also would need to demonstrate that the renter had failed to:

• return the property in the same condition as at the start of the tenancy less fair wear and tear
• repair any damage they caused to the rental property, and/or
• pay any unpaid rent that accrued during the tenancy.

Rental property owners could meet this requirement by providing copies of receipts or invoices for cleaning or repairing the rental property and entry, inspection and exit reports showing the condition of the rental property that demonstrate damage or cleanliness issues caused by the renter that are not considered fair wear and tear.

Renters’ interest in the rental bond when they have accessed a commercial bond product will be protected by clarifying section 138 of the RTRA Act to apply only to assistance provided by the State under a government program or scheme. This will ensure the RTA can pay refunded bond monies directly to the renter who is a party to the tenancy agreement if they have accessed a commercial bond product and renters will remain responsible for meeting their repayment obligations to the bond supplier.