2025 Property Management rules that apply to YOU!

As we near the end of the financial year, we’d like to update you on a few important developments that may impact your investment property.

Rental Law Reforms – What You Need to Know

Recent rental reforms introduced in Queensland are now in effect, and two key changes are worth highlighting:

1. Changes to the Break Lease Process

The Queensland Government has introduced new rental laws that will change how break lease situations are handled. These reforms will take effect based on when the lease was signed.

Leases Signed Before 30 September 2024

For leases signed before this date, the current laws still apply:

• Re-letting Costs: The tenant is responsible for reasonable costs associated with breaking the lease, including the re-letting and marketing fees.
• Rent Compensation: The tenant must compensate the lessor for rent until a new tenant is secured or the lease expires.
• If a tenant believes the lessor is not taking reasonable steps to re-let the property, they may apply to QCAT. If QCAT agrees, compensation may be limited and the lease may be terminated.

Leases Signed From 30 September 2024

For leases signed on or after 30 September 2024, the new laws apply:

• No Re-letting Costs: Tenants will no longer be required to pay the re-letting or marketing fees.
• Rent Compensation Still Applies: Rent is still payable as compensation, calculated based on how much of the lease has passed when the tenant vacates.
• If a new tenant moves in before the end of the compensation period, the outgoing tenant’s rent liability ends when the new lease starts.

These changes may influence how lease agreements are structured and how we mitigate losses from break lease situations. Our team will continue to work proactively to minimise vacancy and protect your rental income & will contact you to discuss the situation should it arise at your investment property.

2. Application Processing Guidelines (Effective 1 May 2025)

From 1 May, property managers must now use a prescribed rental application form under new legislation. This limits:

1. The type of questions we can ask prospective tenants
2. The number and types of documents we can request
3. New Application Rules – What We Can (and Can’t) Ask

✅ What We Can Ask For

• Applicant’s full name and contact details
• Date of birth
• Details of previous tenancy agreements
• Current employment and income
• Referee details (e.g. personal or rental references)
• Intended tenancy term
• Number of occupants and how many are under 18
• Pets – number and type (not breed or size)
• Vehicles – number and type that will be parked at the property

❌ What We Cannot Ask For

• History of home ownership or current address (if they’re not currently renting)
• Employer’s contact details or past employment history
• Age or date of birth of anyone not applying to be on the lease, including children
• Breed or size of pets

📄 What Documents Can Be Requested?

We are limited to requesting a maximum of 2 documents per category:

1. ID (e.g. driver's licence, passport)
2. Financial capacity (e.g. payslip, Centrelink statement)
3. Suitability for the tenancy (e.g. rental reference, rental ledger)

If applicants choose to provide only the minimum required information, we cannot legally request more—even if it would help reduce risk. While applicants can voluntarily provide further documentation, if they choose not to, we may recommend declining the application if it presents a high risk to you as the investor. We continue to act in your best interest and navigate these new requirements carefully to ensure your asset is protected. 

End of Financial Year Statements

Your EOFY statements will be distributed on 1st July. These will be sent via email and also made available in the Ailo app for your convenience. If you have any questions or need support in preparing your records for your accountant, our team is here to assist.