2 months notice does not apply from one fixed term agreement to another (rent increase) QLD

One of the most common questions that are asked of Real Estate Excellence is in relation to time frames for rent increases from one fixed term agreement to another. Section 91 of the RTRA Act is the relevant section in this regard (below). The key provision in this section is the last two lines (and only apply to QLD);

Note—


This section does not apply to an increase in rent from one fixed term agreement to the next.


This means that the two months’ notice does not apply from one fixed term agreement to another. The two months’ notice only applies for a periodic agreement OR when the fixed term agreement from the beginning of the tenancy allows for a rent increase during the tenancy. For example a 12 month fixed term tenancy has a special term drafted by a lawyer or the landlord that rent will increase at the six month term (rent cannot be increased earlier than 6 months). In this example, compliance would mean that at the four month mark of the twelve month tenancy, the tenant must be given two months written notice for the rent to increase at the six month mark.


91 Rent increases

(1) This section applies to increases in rent for the following—

(a) a periodic agreement;

(b) a fixed term agreement, during the term of the

agreement.

(2) If the lessor proposes to increase the rent, the lessor must give

written notice of the proposal to the tenant in the way required

by this section.

(3) The notice must state—

(a) the amount of the increased rent; and

(b) the day from when the increased rent is payable.

(4) The day stated must not be earlier than 2 months after the

notice is given.

(5) Subject to an order of a tribunal under section 92, the

increased rent is payable from the day stated in the notice, and

the agreement is taken to be amended accordingly.

(6) However, if the agreement is a fixed term agreement, the rent

may be increased before the term ends only if the

agreement—

(a) provides for a rent increase; and

(b) states the amount of the increase or how the amount of

the increase is to be worked out.

(7) A rent increase is payable by the tenant only if the rent is

increased under this section.

(8) This section applies subject to section 93.

(9) This section does not apply if—

(a) the lessor is the chief executive of the department in

which the Housing Act 2003 is administered, acting on

behalf of the State; or

(b) the lessor is the State and the tenant is an officer or

employee of the State.

Note—

This section does not apply to an increase in rent from one fixed term agreement to the next.

http://www.legislation.qld.gov.au/
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