Tenancy laws just absurd, says REIQ

The Real Estate Institute of Queensland is moving to protect the interests of lessors to combat what it says is an absurd outcome under new residential tenancy laws.

From October 1, the institute is recommending property managers issue a Form 12 Notice to Leave at the start of a fixed term tenancy agreement.

REIQ CEO Antonia Mercorella says lessors will continue to be required to issue the Form 12 at least two calendar months before the end date of a fixed term agreement.

She says that under the new laws a failure to provide a Form 12 within that time frame will result in a fixed term agreement defaulting into a periodic one.

“When this occurs, the lessor will effectively inherit a tenant for life unless it can satisfy one of the limited prescribed grounds for ending a periodic agreement,” Ms Mercorella said.

“Notably, a tenant will still retain the right to simply terminate the tenancy with 14 days’ notice without having to give any grounds.”

Ms Mercorella said issuing a Form 12 did not, as had been claimed by some organisations, result in an early eviction or impact the tenant’s rights.

“Further, there’s nothing stopping the parties from agreeing to enter into a new tenancy agreement closer to the end date, at which point the Form 12 may be withdrawn,” she said.

Ms Mercorella said the new legislation had left the institute with little choice.

“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.

“The irony of the new legislation is that tenants will, from 1 October, have greater certainty and security under a periodic agreement than a fixed term tenancy agreement.

“This is an absurd outcome given that periodic tenancies are inherently about providing maximum flexibility for both tenants and property owners.”