Rent Guidelines Gives Clarity to Queensland Landlords

The Queensland government established residential rent guidelines to support landlords and property managers almost three weeks after the national cabinet announced the moratorium on evictions.

Landlords were left in limbo after prime minister Scott Morrison made the announcement with no clear instructions on how it would be implemented by either the state or federal governments.

Real estate peak body the Real Estate Institute of Queensland ran a three day campaign for clarity in the property market before the state government “conceded” and made the new guidelines.

REIQ chief executive officer Antonia Mercorella they were satisfied with the framework which provided a more balanced approach for tenants and owners.

“The previously proposed measures would have seriously harmed over 600,000 property owners who provide the vast majority of rental housing supply to 35 per cent of Queensland’s population who rent,” Mercorella said.

“Furthermore, it would have had a devastating impact on the future of the property market and broader Queensland economy.

“We support the protection of tenants who are in financial distress due to this pandemic. However, the scope of the previously proposed measures were too broad in their application.

“In fact, they were the most onerous of their kind for property owners across all Australian jurisdictions.”

Related: Commercial Rent: Deferrals, Waivers Mandated by Code

Covid-19 rent guideline summary

- Threshold criteria to qualify for the application of the COVID-19 rental response, that includes a 25 per cent reduction in income, or where rent exceeds 30 per cent of the tenant’s income.

- Tenants can be asked to provide the same proof of finances to property managers just as they would when starting a tenancy.

- Clear guidance on access for the sale of the property, virtual rental inspections and access for essential repairs and maintenance.

- A 75 per cent income loss threshold before a tenant can end a tenancy with a 7-day cap on break lease fees.

- Limiting any extension on the term of a tenancy agreement during the Covid-19 period to 30 September, 2020 unless agreed otherwise by the owner and tenant, or there is an appropriate ground to end the tenancy.

Minister for housing and public works Mick de Brenni said the government worked with industry stakeholders to take into account the concerns from Queensland property owners and tenants.

“The guide will support owners on a range of Covid-19 issues along with free, impartial and expert conciliation from the Residential Tenancies Authority if parties need additional support to reach agreement,” de Brenni said.

“Tenants and property owners in significant financial distress are also being supported through a $20 million rental grant package, announced with the framework over a week ago.

“As a final step, amendments to the Residential Tenancies and Rooming Accommodation Act will be introduced in Parliament to enable the emergency measures.”

The Residential Tenancies Practice Guide Covid-19 would be published on the Queensland government's new coronavirus website.