What is the new COVID-19 tenancy laws in QLD

The Queensland government proposed the 400 million residential tenancies policy in April(Read more).

Most of the owners complained about the policy as they are more in favor of protecting tenants’ interest. With the strong proposal from REIQ and property owners, the new COVID-19 Tenancy Laws were finally announced on 24th April.

The new law offers much protection for those tenants who have been suffered from CONVID-19, providing a framework and clear guideline to assist both tenants and owners to overcome the pandemic.

Here are some key points of the entire residential tenancies policy, for more details please check Residential Tenancies Practice Guide

Is the tenancy COVID-19 impacted?

The eligibility criteria to determine if a person who is a tenant is suffering or has suffered excessive hardship because of the COVID-19 emergency. A tenancy is COVID-19 impacted if:

1. A person has suffered or is suffering excessive hardship due to the COVID-19 emergency if during the emergency period any of the following apply:

• They or someone they care for are afflicted by COVID-19
• They are subject to a quarantine direction
• A public health direction has closed their employment or restricted their employer’s trade or business, including for example a public health direction has closed a major supplier or customer of their employer
• They are self-isolating because they or someone they live with or are a primary carer for is a vulnerable person
• They are unable to work because a travel restriction imposed under a public health direction prevents them from working or returning home
• They have been prevented from leaving or returning to Australia, AND

2. The person suffers a loss of income of 25% or more, OR

3. The rent payable is 30% or more of a person’s income.

Negotiating rent variations due to impacts of COVID-19

Many Queensland tenants and property owners are being impacted by COVID-19. Tenants, owners and property managers have to work together to consider and understand each points of view. Tenants could ask for rent reduction by either DEFFERD OR WAIVED, with supported evidence. If the two parties cannot come to an agreement, the matter is referred to the RTA for compulsory conciliation.

Noted: These provisions do not apply if your change in circumstances is not COVID-19 related.

Break lease costs for eligible fixed term tenancies impacted by COVID-19

Eligible tenants who need to end their fixed term lease early because of COVID-19 impacts will have their break lease costs capped at the equivalent of one week’s rent, after giving the required notice period to end the tenancy.

The eligible tenants should be: Income has reduced by at least 75% with savings of less than $5,000.

Restrictions on issuing arrears notice

For tenants affected by COVID-19, owners cannot issue Form12 (rent arrears notice) and also unable to list tenants on tenancy database. (But if tenants break the agreement in any other way, owner is allowed to issue rent arrears notice)

This is why the rent reduction must be negotiated so that the owner can still get some rental income during the outbreak.

Extension of fixed-term Leases

Fixed term tenancy agreements due to end before 29 September 2020 must be extended to at least 30 September 2020, unless the tenant requests a shorter term.

EXCEPTIONS – Owners could end a tenancy with 2 months’ notice During the COVID-19 emergency period, if:

• Owner is selling or has sold the property and requires vacant possession
• Owner or their immediate family needs to move in.

Entry provisions

Tenants may refuse physical entry for non-essential reasons, such as routine inspection, especially if they are subject to a quarantine direction for COVID-19 or if a member of the household is a vulnerable person. But tenants must accept people enter for emergency repairs, and compliance checks.

Supporting tenants experiencing domestic and family violence

Tenants experiencing domestic and family violence can:

• end their interest in a tenancy agreement by providing the property owner or manager seven days’ notice of their intention to leave supported by appropriate evidence
• leave immediately after providing the notice and their liability for break lease costs will be capped at the equivalent of one week’s rent
• request their rental bond contribution to be refunded to them

Please do not hesitate to contact us on rentals@midasrealestate.com.au if you have any concerns and thank you for continuing to support us.