Changes to Queensland rental laws came into effect from 6 June 2024. Learn more about the changes and what they mean for you.
A rental property must be advertised at a fixed price - failing to do so is an offence. The property manager/owner does not have to display the price on a ‘for rent’ sign at the property, but any other advertisement must include a fixed price.
A property manager/owner must also not:
- advertise a property with a rent range (e.g. between $420-$460 a week)
- put a property up for rent auction
- proactively tell rental applicants to offer over the advertised rental price and encourage them to outbid each other or accept offers of higher amounts over the advertised rental price.
This is an offence under the Act, with a maximum penalty of 40 penalty units.
From 6 June 2024, a property manager/owner cannot, at the start of a new tenancy, solicit, accept or invite a tenant to pay more rent in advance that exceeds two weeks for a periodic tenancy agreement, rooming accommodation agreement or movable dwelling tenancy agreement and one month for a fixed tenancy agreement, even if a prospective tenant makes an offer to pay more than the amount prescribed in the legislation. This is an offence under the Act, with a maximum penalty of 50 penalty units.
A person is not allowed to accept a rental bond from the tenant if the premises were advertised or offered without a fixed amount of rent. This is also an offence under the Act, with a maximum penalty of 50 penalty units.
Note: throughout the course of a tenancy, a tenant may negotiate how much rent in advance can be paid.
A customer who believes that rent bidding has taken place can contact the RTA for advice and request an investigation.
More information about rent bidding and how to navigate a tight rental market can be found in our webinar Your questions answered: searching for a rental, rent and ending a tenancy.
Scenarios
Case study 1
Scenario: A property has been advertised online with no rental price. Sam wants to apply for the property so rings the agent to ask how much it costs a week to rent. He is told there is no fixed price for the rent and he should put in his best offer. Sam puts in an offer and secures the property.
Analysis: The property manager has acted illegally and encouraged rent bidding by not advertising the property at a fixed price.
Case study 2
Scenario: Ali proactively puts in an offer for a rental property, offering to pay two months' rent in advance and an extra $15 a week over the rental asking price. The property manager accepts her offer and she secures the rental property.
Analysis: The property manager has acted illegally. Although the property manager has not encouraged rent bidding, they must not accept the offer to pay over the asking price and two months' rent in advance for the rental property.
Case study 3
Scenario: Maria secures a rental property and has been asked to pay one month rent in advance. Three months into her tenancy she receives a lump sum payment from work and offers to pay her next three months rent in advance to help her manage her household budget more effectively. The property manager accepts her three months rent in advance.
Analysis: The property manager has not acted illegally. The property manager only took one month rent in advance upon starting the tenancy agreement. Maria negotiated with the property manager during the tenancy to pay further rent in advance and as the agreement had commenced, this is not illegal.