Host – Belinda Heit – Communication and Education – RTA  

Guest – Cassie Chow – Education – RTA  

Host: You've been on the hunt for your dream rental and finally spotted the right home for you. After inspection, you love it and want to take the steps to rent it. So what happens next? Today's expert from the RTA is Cassandra Chow. Welcome, Cass. How are you doing?

Guest: Thanks, Belinda. I am fantastic and it's great to be here again.

Host: Now, can you tell us about your role at the RTA and what you're responsible for?

Guest: Currently I'm the leader of the in-house staff training and quality team. I've also had a few other roles at the RTA, including senior community education officer within the housing legislation implementation team, quality and training officer, and a customer experience officer.

So I've performed a variety of roles in my time at the RTA, and that includes everything from taking customer calls, facilitating in-house training and coaching, to delivering information sessions and other tenancy education to the community, and also to leadership.

Host: And this is why I love doing a podcast with you, because you're so knowledgeable and that's why you're with us today. Now, today we're talking about starting a tenancy. When we're starting a tenancy, rent is one of the key things we need to take into account each week. Now, rent must be advertised at a fixed price on a property, along with the rental bond. What is a bond and how much bond can be taken?

Guest: The legislation relating to rent is definitely one of the important considerations when starting a tenancy. Two things I'd like to highlight in particular are that, one, yes, a rental property must be advertised for a fixed price. This means the property manager or owner must not advertise a rent range, put a property up for, say, a rent auction, or accept or ask for offers.

In relation to your question about bonds, a rental bond is a security deposit that is taken at the start of the tenancy. It's paid back to the tenant when the property is vacated, providing no money is owed for rent, damages, or other costs.

The legislation does discuss maximum bond amounts. So if a new or renewed tenancy agreement is signed on or after 30 September 2024, the maximum bond amount cannot exceed 4 weeks rent, and that's regardless of the weekly rent amount. For tenancy agreements signed before 30 September 2024, however, managing parties were allowed to request a rental bond exceeding the equivalent of 4 weeks' rent if the rent was more than $700 per week for general tenancy agreements and $500 per week for rooming accommodation agreements.

Now, there are rules around lodging a rental bond. Generally speaking, rental bonds must be lodged with the Residential Tenancies Authority, or RTA, that's us, for safekeeping. If a managing party takes a bond, they must give the tenant a receipt and lodge it with the RTA within 10 days of receiving it. A tenant could also lodge the bond directly with the RTA via the RTA's web services or by completing and submitting a bond lodgement form.

Once the payment has cleared, the RTA will issue a receipt to all parties, which we call an acknowledgement of rental bond. This means if you lodge your bond online and pay by card, you could receive this acknowledgement within minutes, which can be greatly reassuring for both tenants and the property manager or owner.

Host: Now, you can also have multiple bond contributors. How do you manage those?

Guest: Yes, that's right, Belinda. There may be multiple bond contributors in a share house or a co-tenancy.  

Now, to help to explain the difference between a share house and a co-tenancy, which I'm sure some people are wondering, a co-tenancy means that there are two or more people named as a tenant on the tenancy agreement, and all of them pay a share of the bond and rent.

A share house refers to a rental property that involves subletting, where the tenant in the tenancy agreement becomes a head tenant and takes on the responsibilities of the property manager or owner. And it includes giving the sub-tenant a receipt for their bond money paid and lodging the bond with the RTA.

In terms of managing multiple bond contributors, there are different ways for you to do this. If you're in an existing tenancy, you can add or remove bond contributors or change bond contribution amounts either online via the RTA web services, using our change of bond contributors web service, or by completing and submitting a change of bond contributors form to the RTA.

If you're starting a brand new tenancy with other bond contributors, you could lodge the full bond online using the bond lodgement web service, and include details and email addresses of all bond contributors or use the paper bond lodgement form.

Just so our listeners are aware, for the change of bond contributors process, the RTA only requires bond contributors who are transferring some or all of their bond to another party to agree to the request. Managing parties, new bond contributors and existing contributors whose bond amount is increasing or remaining the same don't need to agree to the change request.

The managing party must give approval for any new tenants, sub-tenants or housemates before they can move in. This is no matter whether they are listed on the tenancy agreement, paying a share of the bond or not.

Host: With rent payments, what are some of the ways it can be paid, when is it due and does rent need to be paid in advance?

Guest: Okay, so you've asked a lot of questions there.

Host: I know.

Guest: Let's step through each of the specific subtopics 1 by 1.

We'll start with ways to pay rent. Managing parties must offer tenants at least two ways to pay rent. One of these options must not incur unreasonable transactional costs, which are costs beyond standard transaction fees, and it must be reasonably available to the tenant or resident.

Now, we know that some managing parties may offer a third-party app as one of the options for rent payment, and these apps may charge fees for use. The fees for using the platform may be considered unreasonable transaction costs.

What this means is that if a third-party rent platform charges fees to the tenants or residents for paying their rent using the platform, another method of paying rent must be offered by the managing party. And that other option, it must be a platform that does not cause a tenant or resident to incur costs beyond the usual transaction fees and is reasonably accessible to the tenant or resident. Now the circumstances of each case dictates what is considered reasonably accessible.

Before signing a tenancy agreement, managing parties must provide a written notice outlining any associated costs incurred by using the payment methods offered. This is because managing parties should be aware of the costs associated with the offered payment methods, especially if these costs are not reasonably known by the tenant or resident.

Additionally, from 1 May 2025, managing parties must disclose any financial benefits they may receive if the tenant or resident uses a specific rent payment method. So it's just about transparency, I guess. For example, if a managing party receives an incentive payment from a third party platform or a share of the fees charged by the platform, it must be disclosed to the tenant or resident upfront.

The next question you asked was about when rent is due, from my memory. In terms of this topic, the agreement should state the day that the rent is due to be paid. If rent is being paid electronically, then the rent is considered paid when the tenant has made the payment, not when it's received. And this is a really important distinction, because if the managing party wants to receive it on a Thursday, they may be better to request for the rent to be paid on a Tuesday to allow for processing times.

It's really important for expectations to be set between the parties. Otherwise, the relationship may get off on a bad foot and we don't want that.

Now to illustrate, let's consider a situation where the tenant pays rent on a Thursday, but it's not in the managing party's account until a Monday. It's no fault of the tenant as rent is considered to have been paid on Thursday. You had a third question, which was about rent in advance.

Host: Yes.

Guest: So at the start of the tenancy, a managing party cannot accept more than two weeks rent in advance for a periodic or movable dwelling agreement, or more than four weeks rent in advance for any other type of agreement. However, throughout the course of a tenancy, a tenant may wish to negotiate with the managing party about how much rent can be paid in advance.

I also want to note here that requesting rent for a period of rent that has already been paid is an offence.

Host: Now, based on that, can you give us an example on how rent in advance can be applied in the real world?

Guest: Yes, certainly. Let's take this scenario. We have an agreement which states that the tenant must pay rent of $400 per fortnight. Before the tenant moves in, they pay $400 rent in advance. They then move into the property and live there for two weeks. At the end of that two weeks, the rent in advance has been used up and their next $400 rent payment is due.

Host: Got it. All right. Now, when we're starting a tenancy, there's so many things that are going on. It's good to know at what point should the lease be signed.

Guest: Yeah, absolutely. A prospective tenant should hopefully have inspected the rental property in person, or these days virtually via video, and have been given a copy of the proposed tenancy agreement or the lease to consider before committing to the tenancy.

If the rental property is a unit or apartment, I'll also just note that a copy of the body corporate bylaws should be provided as they're considered to be part of the tenancy agreement.

It's important that the tenant takes time to read through their tenancy agreement carefully to check that the details, such as the rent amount and tenancy start date, are as agreed, and understand any special terms that are included.

They should also read through the terms of the rental application in detail, as some may state that if the property is offered to the tenant, they must accept it. This needs to be taken into consideration because in a competitive market, it is common practice for tenants to apply for multiple properties.

So doing all of this gives the tenant an opportunity to ask questions about any of their rights and responsibilities outlined in the agreement and make sure they fully understand what's involved. And I mean, I know for me that I wouldn't want any surprises.

So if after reading through the agreement and understanding what's involved, the tenant is happy with the details, then they can sign the lease and pay the bond to commit to the tenancy. And remember, the tenancy agreement is a legally binding contract, so there are consequences for those who don't comply with the terms and conditions that align with Queensland tenancy laws.

Host: Yeah, exactly. Now, agreeing to a lease, sight unseen. Some of us have been there before and it can backfire. It's important to make sure that you look at the property first and understand the condition of that property. Now, what do you do if you arrive at the property and it's not fit to live in?

Guest: Well, we do hear of that happening. It is a general requirement under the legislation for the property to be clean and fit to live in and good repair at the start of the tenancy. If you're a tenant and you find it's not upon moving in, it's vital to be clear with your communication.

Document the condition of the property on the entry condition report and request for the property to be cleaned or fixed. Otherwise, it's a potential breach of agreement. The seriousness of the issue or level of action to take will depend on the condition.

So for instance, is it just dusty and needs someone to clean it? Or is it more than that? Then if you clean it yourself, make sure this is documented as you have to return the property in the condition you first received it, minus fair wear and tear, at the end of the tenancy. Though I will note that deliberately making it dirty may not be a good idea. Not at all.

If it's so bad you feel that you can't even move in, there are processes to follow around compensation and the potential for the Queensland Civil and Administrative Tribunal, also known as QCAT, to make a ruling on the tenancy.

We always recommend inspecting the property in person before you commit to the tenancy. If you don't and then you want to end the tenancy early upon moving in, this might work against you if you apply to QCAT for a ruling because you did not exercise the due diligence.

Host: Yeah, exactly. Now, you mentioned there before the entry condition report. So let's talk about that. It's important to start a tenancy right and keeping copies of everything like the paperwork that's associated with renting the property.

What do we need to know when it comes to entry condition reports? Because these are really important documents, aren't they?

Guest: They are very important documents and I'm so glad you asked because the answer to your questions about this is really important for everybody to know.

So firstly, the entry condition report records the condition of the property and any inclusions, for example furniture, at the start of the tenancy. It's a critical document which must be completed and signed by both parties. I will emphasize that completing this report properly and taking photos and videos along the way to support the information in the report might avoid future problems, especially at the bond refund process when people want their money back.

It's best to treat these tenancy processes like business transactions and we often say this to people, you know, treat it like a business. You should keep records and copies of all correspondence and documents. We recommend keeping the records for at least one year after the tenancy finishes and don't rely on the other party to have all of the documentation.

Now, if you end up with a dispute and go to QCAT for a decision, you should have all of the supporting documents and evidence. It's really important because QCAT is evidence-based. And the entry condition report is a key document in the dispute resolution process also and can be considered at QCAT as strong evidence. The other party's not going to give you information or documents that helps you build a case against them. So, you know, just always be diligent in keeping your documentation.  

I guess in terms of the process around the entry condition report, the managing party must prepare, sign and give a copy of the report to the tenant at the start of the tenancy indicating if each item in the report is clean, undamaged and working, and the tenant completes part of the same report and can agree or disagree with the condition of the items by including their own comments.

The tenant must return the completed signed report to the managing party within seven days, and then the managing party must send a copy of the signed and completed report back to the tenant within 14 days.

Now, to prevent disputes, the RTA also strongly advises both parties to ensure the meter reading is recorded in the entry condition report. While the Residential Tenancies and Rooming Accommodation Act 2008 (the Act) does not specify who is responsible for recording the meter reading in these reports, according to the Act, a tenant or resident may not be required to pay for water consumption charges for a billing period if the meter reading is not recorded in an entry or exit condition report if the start of the agreement aligns with the beginning of the billing period or the billing period ends when the tenant or resident hands over the premises.

One final thing that I'll just note here is that if the tenant does not complete and return an entry condition report, it means that they agree with the managing party's description of the property. Failing to complete the report is an offence under Queensland's tenancy laws.

Host: And I know they can be painful to fill in, but it is worth taking the time to do so. When we look at access to the property, using keys, security codes, remotes, these also need to be collected from the managing party. When can you expect to collect those?

Guest: Usually keys or access to the property will be provided after the bond is received by the managing party.

Host: Right.

Guest: Or when they are notified the bond has been lodged directly with the RTA via our web services. The managing party must provide one full set of keys for the tenancy for all locks and that, for example, is buildings, security gates, rooms, sheds, lockable cupboards or mailboxes, plus a set of keys required for entering the property to each person named on the tenancy agreement.

Host: Right. Now, can a tenant change the locks on the property?

Guest: Well, they can, but under certain circumstances which are:

• if the tenant and the managing party have agreed
• in an emergency
• or thirdly, by QCAT order.  

If a tenant is experiencing domestic and family violence, they can change the lock to their rental property without consent, but they must provide copies of keys or access codes to the managing party as soon as practical.

Host: That's good to know. Now, how can our RTA web services be used to start a tenancy?

Guest: Well, as mentioned before, RTA web services is an online channel for your essential tenancy transactions.

So using web services, you can lodge your bond directly with the RTA using the bond lodgement web service. You can add or remove bond contributors and or change the way a total bond is distributed amongst the contributors via the change of bond contributors web service. Or you can also update your details on file at the RTA through the update your details web service. And it's really important to keep your details up to date.

Host: Absolutely. And you can access that 24-7 and it's really fast and easy to use now. Is it common, I need to ask you this one, Cass, because I hadn't heard it before. Is it common for a tenant to be asked for a holding deposit?

Guest: I won't comment on whether it's common or not. However, I will say that a prospective tenant can be asked for a deposit to reserve and hold a property they intend to rent. The tenant must be given a copy of the proposed agreement, including any special terms or bylaws, as we mentioned earlier, before money is taken.

The managing party must follow the proper process when taking a holding deposit though. So this includes providing a signed receipt when the deposit is paid and that receipt must include details such as time frames for opting into the tenancy and if no period is specified then it's 48 hours.

If a tenant doesn't notify the managing party within the agreed time frame then the managing party can keep the deposit. However, if the tenant does notify the managing party within the agreed time frame that they do not wish to proceed with the tenancy, the holding deposit must be refunded to them within 3 days.

Host: Got a bit of a scenario for you. When the other party changes their mind at the start of the tenancy, so say it could be the managing party, it could be the tenant, last minute, what's the process to not enter the agreement?

Guest: Most of the time it would be like a break lease situation, which is known under the legislation as ending a tenancy without grounds. Of course, there are multiple factors affecting how this could be approached, such as whether it goes to conciliation or if it's best as a bond dispute, or whether QCAT needs to be involved.

Some of the considerations in this situation might include, well, when did they make this change of mind known to the other party? Has the bond been already paid or has the tenancy agreement been signed? If the tenant changed their mind and the managing party can easily pick someone else who applied for the property and is ready to move in around a similar time, then the managing party may not incur certain costs again, such as for advertising or reletting fees charged by a real estate agency. So it could be a different situation altogether.

Another consideration might be when the agreement actually comes into play. Have the tenants actually taken possession and collected the keys? Have they signed the agreement or only indicated that they would take the property? Has a bond been paid? If not, it may be difficult to claim compensation and will the managing party be better off trying to find someone else instead?

You might also consider, have their personal circumstances changed? Are they suffering excessive hardship? So I guess, in this scenario, there's a lot of things to think about.

Host: Yeah, exactly. Well, thanks, Cass. There's a lot to actually navigate when we, you know, are starting a tenancy and you've helped us get through all of that. In summary, it is beneficial to know your rights and responsibilities when you decide to rent a property. So make sure you ask plenty of questions and do your research.

Guest: Absolutely.

Host: Remember, you can find out more about everything we've discussed today on our website at rta.qld.gov.au. Thanks again, Cass. Absolute pleasure.

Guest: Thanks, Belinda.

Host: Thank you for listening to the Talking Tenancies podcast. For more information about the Residential Tenancies Authority, visit rta.qld.gov.au.