If you are a landlord, or you are considering becoming a landlord by buying an investment residential property, then you need to be across the residential rental law reforms.
On the 6 June 2024, rental reforms were introduced by the Queensland Government. The rental reforms set a limit for rental increases, by implementing that the rent for any property can only be increased on one occasion within any 12 month period.
The reforms were implemented given significant increases in rent which have been seen in Queensland in recent years.
It is of vital importance that rental records are maintained if you are a landlord. You need to keep rental ledgers and retain correspondence sent to the tenant notifying them of a rental increase. Such record keeping is important, as if you sell the property you are required to disclose to a Buyer the date of the last rental increase and provide evidence of the rental increase prior to settlement.
This information needs to be provided to a Buyer, so they can ensure they comply with the legislative requirements to not increase the rental within 12 months of the date of the last rental increase. As a Buyer, you inherit the position of the Seller and any other former owner of the property as this requirement attaches to the property – not to a particular tenant or owner.
It is important to ensure if you are buying or selling a residential property, that either is tenanted or has been tenanted within the last 12 months, that you obtain detailed advice on the rent history.
Our Property + Business Transactions team can assist with these issues and ensure you comply with these new legislative requirements.
Written by Amanda Tolson and Lisa Hooper.
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