This guide covers landlords (or head-tenants) and tenants (or sub-tenants) in a Residential Tenancy. This applies to the majority of share accommodation and residential property rental situations. To confirm it covers your situation visit What is my share accommodation situation?
Rent is a regular payment made by the tenant(s) to the landlord in return for the right of use of the property or room.
The tenant is required to pay the rent to the landlord on the day that the rent is due. The tenant can also choose to pay rent before the due date.
There are restrictions on the types of payments that a landlord can receive from a tenant during a tenancy. Rent is one of types of payment allowed. The Rental Bond and charges for utilities are the other main types of payments allowed during the tenancy.
While the tenant can volunteer to pay as much rent in advance as they wish, there are some restrictions on how much landlords can require as rent in advance.
If the agreement is for share accommodation or a periodic tenancy, then the maximum amount of rent in advance that the landlord may require is 2 weeks.
Example: if the the weekly rent is $400, then the maximum amount of rent in advance is $800
If the agreement is a fixed term agreement for general tenancy, then the maximum amount of rent in advance that the landlord may requires is 1 month.
Example: if the weekly rent for a general fixed term tenancy is $400, then the maximum amount of rent in advance is $1,600
Once rent in advance has been paid, the landlord cannot require the tenant to pay any further rent until it becomes due.
A fixed term tenancy is where the tenancy agreement has a specific length agreed to by the tenant and landlord, e.g. 6 months. A periodic tenancy is where the tenancy agreement has no specific length agreed to, e.g. Month-to-month
The method of paying rent should be agreed to by the tenant and landlord in the residential tenancy agreement. It is recommended that the tenant and landlord agree on an alternative means of payment in case issues arise with the main method.
In Queensland, there is a list of 6 approved ways of paying rent. Alternatively, the tenant and landlord can agree on a method of payment not included in the list. The approved methods are:
The most popular ways of paying rent are direct bank deposit/transfer and cash payments.
Never pay rent via an untraceable money transfer system such as Western Union.
If the tenant and landlord agree to a method of payment not in the list, the landlord must also allow the tenant to pay rent in at least 2 of the approved ways as an alternative. If the tenant will incur an additional cost or fee by using the agreed method, the landlord must inform the tenant.
Keeping track of rent payments through receipts and other permanent, written records is an important part of securing a tenancy and preventing any issues from arising.
Although receipts are not always required by law depending on the way rent is paid, asking for and giving receipts regardless of payment method is best practice for landlords and tenants alike. In the unlikely event that a dispute arises regarding payment of rent, receipts are the main form of evidence used.
In Queensland, the landlord (or agent) is only required to give a receipt when a rent payment is paid in cash or by cheque (if the tenant requests a receipt). When the payment is made in cash, the receipt must be given when the payment is made. If the payment is by cheque, then the landlord must give the receipt within 3 business days.
No receipt is required by law for electronic payments. This is because the electronic transaction record acts as a permanent record of the payment. Although this is sufficient, a written receipt gives greater certainty and it is strongly recommended using one nonetheless.
If no receipt is required or requested, the landlord must still keep a record of each payment. This record may be requested at any time by the tenant and must be provided within 7 days.
What should be on the receipt?
The receipt should clearly indicate that it is a receipt—it is advisable for each receipt to be a separate document rather than entries in a rent receipt book.
When a receipt is given, it should include the following details:
The landlord is also required to keep a record of rent paid for at least 1 year after each payment, regardless of whether a receipt was given for the payments.
If a receipt was given for the payment, then keeping a copy of the receipt is sufficient. The record should include the same details for each payment as are required for a receipt (listed above).
A tenant can request a copy of the rental record at any time, and must be provided within 7 days.
Landlords are allowed to increase the amount of rent payable during the course of the tenancy. For the protection and certainty of both parties, there are restrictions on the when and how rent can be increased. In Queensland, the restrictions vary depending on the nature of the tenancy agreement.
Although it is not necessary for the tenancy agreement to include a term allowing a future rent increase in periodic agreements, it is best practice for all parties to be aware of that increases may be necessary, and if so, by how much and when.
When rent can be increased
For a general fixed term tenancy, rent can only be increased if the tenant is given at least two months written notice. For a periodic tenancy or share accommodation agreement, four weeks written notice must be given. The landlord is allowed to increase the rent only once every 12 months.
As mentioned above, the rent under a fixed term tenancy agreement can only be increased if the agreement allows this. The agreement should state either the increased rent amount, or at least a method for calculating the increased rent.
While this is not required for a periodic agreement, it is in all parties’ best interests to at least discuss the potential for a rent increase during the course of the tenancy.
When a fixed term tenancy agreement continues after the fixed term has ended, it then becomes a periodic agreement. Therefore, after the end of the term, the rules for periodic agreements apply in place of the fixed term rules.
A fixed term tenancy is where the tenancy agreement has a specific length agreed to by the tenant and landlord, e.g. 6 months. A periodic tenancy is where the tenancy agreement has no specific length agreed to, e.g. Month-to-month
Two Months (or four weeks for share accommodation) Written Notice
The requirement of two months (four weeks for share accommodation) written notice for any rent increase allows both the tenant and landlord time to discuss and prepare for any increase. Any increase in rent that does not follow this requirement is invalid.
To ensure that this requirement is met, there are a number of things to remember:
Excessive Rent
If the tenant believes that a rent increase is excessive, the first step should be to discuss the issue with the landlord. If the landlord and tenant cannot come to an agreement, then the tenant can apply to QCAT for a review of the increase. Check out our Resolving Disputes page for more information.
Renewing a tenancy agreement
When the same tenant and landlord renew a tenancy for the same property immediately after the end of the original lease, if the rent has increased then the landlord must give 2 months (or four weeks for share accommodation) written notice.
The rent under a tenancy agreement may also be reduced. In Queensland, the tenant and landlord can agree at any time to reduce the rent payable at any time.
In addition, there are two other ways that the rent may be reduced—these are listed below. In these circumstances, the tenant should make a written request to the landlord first. If the landlord does not agree to a reduction, then the tenant apply to QCAT. Check out our Resolving Disputes page for more information.
1. Reduction in goods, services or facilities provided to premises
The tenant is entitled to a rent reduction if any goods, services or facilities provided with the premises have been withdrawn or reduced. The reduction in rent because they are no longer being provided with everything bargained for and priced at the original rental rate.
Common examples of where the tenant can request a rent reduction include:
2. Premises becomes unusable
The tenant becomes entitled to not pay rent if the whole premises, or part of the premises, becomes unusable for one of three reasons:
Transferring money safely
When paying your deposit, bond or rent by cash make sure you get a receipt. With modern phones this can be as simple as an SMS or email confirming the amount, date and what it is for. Keep a copy of this incase you need it later.
Never ever transfer money to a bank account outside of Australia or use a untraceable money transfer system such as WESTERN UNION. If anyone asks you to do this on any website it is likely to be a scam and you are almost guaranteed to lose your money.
If this ever happens on Flatmates.com.au report the member immediately so we can investigate and take the appropriate action.
QLD Bonds
QLD Tenancy Agreements
QLD Holding Deposits
These legal guides provide a brief summary and introduction of the laws and regulations affecting share accommodation. They do not cover all cases in all legal jurisdictions and might not apply in your specific share accommodation situation. It is important that you use this information as a guide only and seek independent Legal Advice or consult the Relevant Acts. We do not accept any liability that may arise from the use of this information.