Options paper overview | Stage 2 rental law reform

1. Status quo + Education

No change is made to Queensland’s laws. Renters need the rental property owner’s permission to change the rental property and this consent cannot be unreasonably withheld.

Education

Developing resources and education materials could help renters and rental property owners to negotiate and agree what changes a renter may make to the rental property. These materials could provide information about what may be considered a safety, security or accessibility change or when withholding permission may be reasonable or unreasonable.

Resources and education material may also highlight the benefits of installing safety, security and accessibility measures for renters, including for example expanding the pool of prospective renters for the rental property, the tendency for some vulnerable renters to prefer longer leases, and improved asset value.

Additional information resources can be developed to direct renters to specialist support organisations, potential funding sources and rental law experts to help them exercise their rights.

2. Guide discretion

Amend Queensland’s rental laws to provide more guidance to support renters and rental property owners to agree changes that can be made to the rental property.

Renters would continue to require rental property owner permission to make changes.

Rental property owners could only refuse safety, security, and accessibility changes on prescribed reasonable grounds. Renters would need to provide evidence to support their need for safety, security or accessibility measures to be installed. In addition, as these measures are likely to modify a surface or interact with the structure of the property and require a level of skill or expertise to be installed effectively and ensure user safety, they should be installed by a qualified person. Reasonable grounds for refusal could include that:

• the measures required could not be safely installed at the rental property
• installing the measure would breach a law or by-law
• installing the measure would require change to be made to other residential properties or common
• property in managed communities
• installing the measure would jeopardise the license of the provider to operate rooming
• accommodation and/or the safety of other renters in the rooming accommodation, and
• the property owner will allow an alternative way of achieving the desired outcome that meets the
• renter’s requirements.

Renters must return the rental property to substantially the same condition as before the change was made to the extent it is reasonably practicable to do so unless the rental property owner agrees to retain the change as an improvement to the rental property. If the change is retained the parties may agree an amount the renter will receive from the rental property owner as compensation for the improvement to the rental property.

Renters would continue to be liable for the costs to repair any damage caused to the property when installing or removing a modification.

3. Limit discretion

Amend Queensland’s rental laws to specify changes a renter can make that do not require the rental property owner’s permission and require a rental property owner to seek an order from a Tribunal to prevent the change being made.

Renters must notify rental property owners of their intention to make a specified change at least 14 days before the change is made. Rental property owners must inform the renter of their intention to seek a Tribunal order to prevent the change from being made within 14 days of receiving the renters’ notification. Rental property owners must apply to the Tribunal for the order within 28 days of notifying the renter of their intention to do so. If the rental property owner fails to apply for the order within this period, the renter may proceed to make the change.

Changes that do not require rental property owner permission to make would be stated in a Regulation and could include:

• accessibility changes determined by an occupational therapist or other specified practitioner as necessary
• security measures that are necessary to ensure the safety of a renter who has or is experiencing domestic and family violence, such as security screens, deadlatches and wireless, removable outdoor security cameras
• securing furniture to a non-tiled wall for safety reasons
• fitting a childproof latch to an outdoor gate
• installing child safety gates inside the property
• installing window safety devices for child safety, and
• installing hand-held shower heads or lever-style taps.

Renters must return the rental property to substantially the same condition as before the change was made to the extent it is reasonably practicable to do so unless the rental property owner agrees to retain the change as an improvement to the rental property. If the change is retained the parties may agree an amount the renter will receive from the rental property owner as compensation for the improvement to the rental property.

Renters would continue to be liable for the costs to repair any damage caused to the property when installing or removing a modification.

1. Status quo + Education

No change is made to Queensland’s laws. Renters need the rental property owner’s permission to change the rental property and this consent cannot be unreasonably withheld.

Education

Developing resources and education materials could help renters and rental property owners to negotiate and agree what changes a renter may make to the rental property. These materials could provide information about what may be considered a minor change or when withholding permission may be reasonable or unreasonable. These materials could help rental sector stakeholders assess the risks and benefits of common minor personalisation changes and guide their decision making.

2. Guide discretion

Amend Queensland’s rental laws to provide more guidance to support renters and rental property owners to agree changes that can be made to the rental property.

Renters would continue to require rental property owner permission to make changes.

Rental property owners could not unreasonably refuse permission for renters to make minor personalisation changes to the rental property. It would be unreasonable for a rental property owner to refuse permission if:

• the change would not
  • breach a law or by-law
  • expose the renter or another person to health or safety risks that cannot be controlled or addressed
  • significantly change the structure, layout, or nature of the property
  • require change to be made to other residential properties or common property in managed
  • communities
  • create a reasonable risk of causing significant damage to the property
  • cause additional maintenance costs for the rental property owner, and
  • jeopardise the license of the provider to operate rooming accommodation and/or the safety of other
  • renters in the rooming accommodation.
• the change would be reasonably practicable to remove for the property to be returned to substantially the same condition as before the change was made.

Renters must return the rental property to substantially the same condition as before the change was made to the extent it is reasonably practicable to do so unless the rental property owner agrees to retain the change as an improvement to the rental property. If the change is retained the parties may agree an amount the renter will receive from the rental property owner as compensation for the improvement to the rental property for example where the renter paid for the changes to be made.

Renters would continue to be liable for the costs to repair any damage caused to the property when installing or removing a change they make and/or be compensated for any modifications remaining that could be considered an improvement or adding value to the property.

3. Limit discretion

Amend Queensland’s rental laws to specify changes a renter can make that do not require the rental property owner’s permission and require a rental property owner to seek an order from a Tribunal to prevent the change being made.

Renters must notify rental property owners of their intention to make a specified change at least 14 days before the change is made. Rental property owners must inform the renter of their intention to seek a Tribunal order to prevent the change from being made within 14 days of receiving the renters’ notification.

Rental property owners must apply to the Tribunal for the order within 28 days of notifying the renter of their intention to do so. If the rental property owner fails to apply for the order within this period, the renter may proceed to make the change.

Changes that do not require rental property owner permission to make would be stated in a Regulation and could include:

• installing or replacing hooks, nails or screws for hanging paintings, picture frames and other similar items
• installing a phone line or internet connection
• planting vegetables, flowers, herbs or shrubs if existing vegetation and plants do not need to be removed
• applying shatter-resistant film to window or glass doors, or
• making changes that don’t penetrate a surface or permanently modify a surface, fixture or structure of the property.

Renters must return the rental property to substantially the same condition as before the change was made to the extent it is reasonably practicable to do so unless the rental property owner agrees to retain the change as an improvement to the rental property. If the change is retained the parties may agree an amount the renter will receive from the rental property owner as compensation for the improvement to the rental property.

Renters would continue to be liable for the costs to repair any damage caused to the property when installing or removing a change they make.

1. Status quo + Education

No change is made to Queensland’s laws. Current entry rules will be retained and Queensland’s rental laws will continue not to regulate the rental application process.

Education

Resources and materials could be developed in consultation with the residential rental sector to improve understanding about:

• the purpose and impacts of entry
• entry rights and obligations
• guidance about better entry practices
• privacy considerations for entry
• what information may be appropriate and relevant to assess prospective renters’ suitability, and
• guidance about better practices for the collection, use and handling of renters’ personal information.

These materials would raise parties’ understanding and awareness about potential impacts and risks of entry and privacy, provide guidance about better practices to improve tenancy relationships and outcomes, and suggest solutions or pathways to manage common problems.

2. Balancing access and privacy

Amend Queensland’s rental laws to:

• provide more guidance about conducting entry to the rental property during a tenancy, and
• protect renters’ personal and information privacy.

Entry

Renters’ right to reasonable peace, comfort and privacy and rental property owners’ entry rights will be adjusted to strike a more appropriate balance that better protects renters’ privacy while ensuring rental property owners can access the information they need to make informed investment decisions.

Rental property owners can conduct general inspections no more frequently than once every three months and must provide renters at least 7 days written notice of the proposed entry. The first general inspection may not be carried out within the first three months of a tenancy commencing.

In determining how frequently to conduct general inspections the rental property owner must consider the:

• current and intended length of the tenancy for both parties
• renter’s rental history, and
• condition of the rental property, including compliance with health and safety laws.

Renters must allow at least one physical general inspection to be carried out annually but may request further general inspections be carried out by:

• virtual inspection using electronic means to conduct a visual inspection of the rental property
• video conference with the managing party, or
• the renter giving the managing party access to photographs or video of the rental property and its inclusions of sufficient visual quality to enable the managing party to judge the condition of the rental property.

Existing entry grounds provided for rental property owners in Queensland’s rental laws will be retained and an additional ground provided to allow inspections required under a contract for the sale of the rental property to be undertaken, such as a mortgage valuation, building and/or pest inspection and pre-settlement inspection.

The notice renters must be provided for entry on grounds other than general inspection will be extended from 24 hours to 48 hours, unless existing provisions altering the notice requirements apply (see sections 193(2) to 193(4) of the RTRA Act).

Privacy

Rental property owners and managers must take reasonable steps to ensure the renter’s privacy is protected during entry, including by not interfering with the renter’s reasonable peace, comfort and privacy.

Unreasonable interference would include:

• frequent entry to the premises for unnecessary repairs or unrequested services that the renter does not agree with taking photographs during inspections that are unnecessary to record premises condition or compliance with tenancy obligations, particularly if images taken include the renter’s personal possessions and living standards
• excessive entry to show the rental property to prospective buyers or renters, and/or
• not taking reasonable steps to accommodate renter’s request to be present during entry.

Rental property owners and managers must ensure any photographs containing images of the renters’ personal possessions or standard of living are securely stored and accessed only for the purposes of tenancy management by the owner or their agent unless the renter agrees otherwise.

Rental property owners and managers must ensure information collected from prospective renters through the application process is securely stored and/or destroyed and accessed only for the purposes of assessing tenancy suitability by the owner or their agent unless the renter agrees otherwise.

Renters must be given choice about how they will submit a rental application, including in hard copy or via email, and cannot be required to use an online or third-party platform. Renters can meet identify verification requirements by allowing the rental property owner or their agent to access or sight original identity documentation rather than providing a copy or image of the documentation.

3. Limit intrusion

Amend Queensland rental laws to:

• limit entry frequency and extend required notice
• limit the information a renter can be asked to provide during a rental application process, and
• protect renters personal and information privacy.

Entry

Rental property owners may only conduct entry to undertake a general inspection of the rental property once every 6 months and must provide the renter with at least 10 business days written notice of the proposed entry. The first general inspection may not be carried out within the first three months of a tenancy commencing.

Renters must allow at least one physical general inspection to be carried out annually but may request further general inspections be carried out by:

• virtual inspection using electronic means to conduct a visual inspection of the rental property
• video conference with the managing party, or
• the renter giving the managing party access to photographs or video of the rental property and its inclusions of sufficient visual quality to enable the managing party to judge the condition of the rental property.

Existing entry grounds provided for rental property owners in Queensland’s rental laws will be retained and an additional ground provided to allow inspections required under a contract for the sale of the rental property to be undertaken, such as a mortgage valuation, building and/or pest inspection and pre-settlement inspection.

The notice renters must be provided for entry on grounds other than general inspection will be extended from 24 hours to 72 hours, unless existing provisions altering the notice requirements apply (see sections 193(2) to 193(4) of the RTRA Act).

The rental property owner or their agent must give the renter at least 14 days notice of their intention to sell the rental property before entry to show the rental property to prospective buyers is proposed. The rental property owner or their agent may enter the rental property to take advertising photos or videos if they give the renter at least 7 days written notice and make reasonable attempts to agree a suitable time with the renter for this entry to occur.

Entry to show the rental property to prospective buyers or renters can be exercised up to twice per week and the renter must be provided with at least 72 hours written notice. Rental property owners or their agent must make reasonable efforts to agree suitable days and times for entry to show the rental property to prospective buyers or renters to occur.

Renters will be entitled to compensation if any of their possessions are damaged or stolen during any right of entry.

Privacy

Rental property owners and managers must not interfere with the renter’s reasonable peace, comfort and privacy by taking reasonable steps to:

• ensure entry is only undertaken to complete necessary repairs or provide services requested by the renter, and
• accommodate renters request to be present during entry.

Renters can object in writing to the taking of photos or video that may identify a person living at the rental property who is at risk of domestic and family violence. Renters may also object in writing to the taking of advertising photos or video that may:

• directly identify or reveal sensitive information about someone living at the rental property
• shows valuable possessions and would increase the risk of theft, or
• would be unreasonable to expect the renter to remove or conceal.

If the renter objects to photos or video as outlined above, the rental property owner or their agent cannot produce or use the advertising material identified in the objection. The renter can ask to review and approve advertising photos or video before they are used, and this material cannot be used unless the renter provides written consent. The rental property owner or their agent must get the renter’s consent to advertise using photos or videos taken for other purposes or advertising photos or videos showing a renter’s possessions more than 12 months after the photo or video was taken.

Rental property owners and managers must ensure any photographs containing images of the renters’ personal possessions or standard of living taken during entry for purposes other than advertising the rental property for sale are securely stored and accessed only for the purposes of tenancy management by the owner or their agent unless the renter agrees otherwise.

Rental property owners and managers cannot request information from prospective renters in rental applications about:

• disputes or legal action against a rental property owner or manager that the prospective renter has been involved with bond refund disbursements in previous tenancies
• financial statements that show transactions made by the prospective renter, or
• information about protected attributes under the Anti-Discrimination Act 1991, unless it is necessary to collect this information to determine a prospective renter’s suitability for accommodation that is exempted for discrimination in the accommodation area under the Anti-Discrimination Act 1991.

Rental application forms used in Queensland must include information that educates people about unlawful discrimination.

Rental property owners and managers must ensure information collected from prospective renters through the application process is securely stored and/or destroyed and accessed only for the purposes of assessing tenancy suitability by the owner or their agent unless the renter agrees otherwise.

Renters must be given choice about how they will submit a rental application, including in hard copy or via email, and cannot be required to use an online or third-party platform.

Renters can meet identify verification requirements by allowing the rental property owner or their agent to access or sight original identity documentation rather than providing a copy or image of the documentation.

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.

1. Status quo + education

No change is made to Queensland’s rental laws. Existing requirements for payment methods and passing on service charges and reletting costs are retained.

Education

Develop resources and education materials in consultation with the residential rental sector to provide guidance about:

• negotiating additional fees, service charges and other costs the renter may incur as part of the tenancy, including best practice approaches for transparency and passing on these costs, and
• availability of rental and other assistance.

2. Increase transparency

Amend Queensland’s rental laws to require:

• renters to be offered a fee-free rent payment method
• utility bills the renter is responsible for paying to be forwarded promptly, and
• the amount of reasonable reletting costs to be determined by prescribed caps.

Fees

Renters must be offered a fee-free rent payment method, such as direct deposit, and be given clear information about any charges they may incur to use other rent payment methods available to them.

Service charges

Rental property owners and renters may continue to include terms in tenancy agreements that require the renter to pay consumption charges for services supplied to the rental property. The rental property must continue to be separately metered for services supplied and meet water efficiency standards prescribed by regulation.

Rental property owners must send utility bills the renter is responsible for paying within one month of receiving the bill from the utility supplier. The renter will continue to be required to pay the utility charges within one month of receiving the bill from the rental property owner.

Reletting costs

The reasonable amount of reletting costs will be the lower of either:

• reasonable compensation as is currently provided for in the RTRA Act, or
• as determined by the time remaining on the agreed term:
  • four weeks rent if 75 per cent or more of the agreed term remains
  • three weeks rent if 50 per cent and less than 75 per cent of the agreed term remains
  • two weeks rent if 25 per cent and less than 50 per cent of the agreed term remains
  • one weeks rent if less than 25 per cent of the agreed term remains.

3. Limit fees and charges

Amend Queensland’s rental laws to:

• require a fee-free rent payment method be provided to renters
• renters only required to pay excessive consumption charges above reasonable consumption for comparable household, and
• limit break lease fees and service costs that can be charged.

Fees

Renters must have a fee-free way to pay rent and must get clear information about charges for other payment methods.

Service charges

Renters may only be required to pay for excessive consumption charges above what would be considered reasonable consumption for a comparable household in housing of comparable size and inclusions to the rental property. The rental property must continue to be separately metered for services supplied and meet water efficiency standards prescribed by regulation.

Rental property owners must send utility bills the renter is responsible for paying within one month of receiving the bill from the utility supplier. Renters will not be liable to pay for charges for bills that are not provided to them by the rental property owner within the prescribed timeframe. The renter will continue to be required to pay utility charges within one month of receiving the bill.

Reletting costs

Rental property owners and renters may continue to include terms in tenancy agreements that require the renter to compensate the rental property owner for the reasonable costs they incur to relet the rental property if the renter ends a fixed term agreement before the agreed term ends except in specified circumstances, including:

• the renter is ending the agreement to access more affordable rental accommodation in the private rental market or to accept an offer of social housing
• the renter will experience excessive hardship if they are required to pay the reletting costs.

The reasonable amount of reletting costs will be the lower of either:

• the rent payable before the rental property is relet to another renter, or
• as determined by the time remaining on the agreed term:
  • four weeks rent if 75 per cent or more of the agreed term remains
  • three weeks rent if 50 per cent and less than 75 per cent of the agreed term remains
  • two weeks rent if 25 per cent and less than 50 per cent of the agreed term remains
  • one weeks rent if less than 25 per cent of the agreed term remains.