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The Real Estate Institute of Queensland (REIQ) has doubled down on its best practice recommendations in light of the state’s new tenancy legislation.
From 1 October 2022, the date the new laws — which introduce a raft of changes, including the removal of the right for property owners to end a periodic tenancy by simply providing notice — come into effect in the Sunshine State, the REIQ has recommended property managers issue a Form 12 Notice to Leave (Form 12), at the start of a fixed-term tenancy agreement, in order to confirm the agreed end date of the tenancy agreement.
Antonia Mercorella, the state body’s chief executive officer, said the decision to provide clarity and context around its suggested practice was to reduce any misinformation or confusion that may surround it.
“In Queensland, even though the parties have agreed on the length of a fixed term tenancy agreement, the law still requires the lessor to issue a Form 12 at least two clear calendar months’ prior to the end date of a fixed term tenancy agreement,” she said.
Under the new laws, if a lessor and a tenant have entered into a fixed-term agreement with an end date of 31 December 2022, if, by no later than 28 October 2022, a Form 12 had failed to be issued, the agreement would switch to a periodic agreement, despite any initial agreement on the end date.
Once this has occurred, the lessor would only be able to terminate the new periodic tenancy agreement if they can satisfy the new limited prescribed grounds. Conversely, a tenant is able to issue a notice without ground with just 14 days’ notice.
This is the primary reason why the institute is recommending issuing a Form 12. According to Ms Mercorella, “this simply affirms the agreed contractual terms that the fixed term tenancy agreement will be on the agreed end date”.
“Issuing a Form 12 does not, as has been alleged by some organisations, result in an early eviction or, in any way impact the tenant’s rights under the fixed term tenancy agreement,” she added.
Moreover, she outlined how “there’s nothing stopping the parties from agreeing to enter a new tenancy agreement closer to the end date, at which point the Form 12 may be withdrawn”.
Ms Mercorella stands by the institute’s best practice recommendations, stating that it is the REIQ’s role as the peak body to ensure real estate professionals comply with their legislative agreements.
She said it was regrettable that such a practice has to be promoted; however, she asserts that the legal amendments, which fail to protect all parties in a tenancy relationship, have left them with no option but to do so.
“When the new legislation was being developed, the REIQ forewarned the government that this practice would be recommended by the REIQ to preserve the rights of lessors,” she said.
She proclaimed that ironically, the latest legislation means that from 1 October, tenants will have greater protection under a periodic agreement than a fixed-term tenancy agreement, despite periodic agreements historically providing maximum flexibility for both tenants and owners.
To accompany the changes to legislation, the REIQ has created a tenancy laws toolkit to help property managers navigate the changes, which is set to include template letters to encourage positive and effective communication with tenants and alleviate any concerns and confusion.
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