Queensland’s powerful rental regulator prides itself on making “renting work for everyone” but, as the housing crisis drags on, it has been accused of going soft on law-breaking landlords.
Key points:
- The Residential Tenancies Authority is under fire over claims it wrongly handed over a tenant’s bond to their real estate agent
- The authority has the power to prosecute landlords or agents but has launched none in the past two years
- Rental advocates and the real estate industry are calling for change
The Residential Tenancies Authority (RTA) is the key body that enforces legislation designed to protect the state’s 1.8 million renters by investigating illegal behaviour and resolving disputes.
The authority investigated 549 alleged offences by landlords, owners and agents in 2021-22, and upheld 392, or about 70 per cent with no prosecutions launched during that time.
It also handled around 40,000 disputes between renters and agents or landlords over the past two financial years.
The RTA has not successfully prosecuted a single case or issued any fines for bad behaviour by landlords and agents over the same period.
But the most recent prosecution listed by the RTA on its website was that of a Sunshine Coast landlord in early 2020.
Housing advocates and tenants say the RTA is letting offenders off with “a slap on the wrist” and letting down the people it is meant to protect.
‘I’m still very shocked’
Single mother Helena (not her real name) is embroiled in a legal fight over her $1,500 rental bond.
She alleges the RTA wrongfully released the money to her Gold Coast real estate agent, despite the RTA’s policy requiring it to seek approval from the tenant.
“Honestly I’m still very shocked and I can’t comprehend the reason,” she told the ABC through an interpreter.
Helena said when she moved rental properties in February this year, she gave notice that she would not renew her lease.
She was left out of pocket when the RTA granted the agency’s request to take her bond money.
Helena said she had to sell her car to pay the bond for her new rental unit.
“I needed the money again, but I didn’t have it so I am faced with a financial problem — it was very painful,” she said.
Under Queensland law, new tenants pay a bond — usually the equivalent of a month’s rent — which must be lodged to the RTA and held for the length of the rental lease.
When they leave, the full amount is returned to the tenants, provided there is no unpaid rent, damage, or other costs to pay.
The RTA said Helena, who speaks Farsi, gave her approval for the money to go to the agents — a claim Helena denies.
Mum’s fight to win back her bond money
In April, the Queensland Civil and Administrative Tribunal (QCAT) backed Helena’s claim, ordering the real estate agency to pay her $1,701.50 within two weeks.
The agency has since won an application for QCAT to reconsider the matter, claiming the tenant owed money for cleaning and other outstanding costs.
“I am a single mother and I am taking care of a one-year-old son, so this issue is proving very tough for me. I do not have any job,” Helena said.
“I am still grappling with these hardships.”
The RTA told the ABC it would review Helena’s case and “work with all parties”.
‘Education’ instead of prosecution
Helena is one of approximately 370,000 tenants who call the RTA each year seeking help.
Of the 20,000 disputes lodged in the 2021-22 financial year, the RTA investigated 549 alleged offences by landlords, owners or agents.
The RTA could not provide data for the 2022-23 period, but it told the ABC, “Preliminary data shows the number of conciliated disputes remains similar.”
It has the power to prosecute through court action, publicly naming offenders, and can issue fines worth thousands of dollars.
But instead of prosecution, the RTA’s policy instructs staff to avoid prosecutions or publicly name offenders because they are “resource intensive”.
Instead, investigators issue a “caution” and “provide education and information” to offenders to encourage better behaviour.
RTA principal project officer Sam Galer said most disputes it handled between tenants and landlords were resolved without legal action.
He said the team worked to identify landlords or agents doing the wrong thing and put them on the right path before a dispute or investigation arose.
“Essentially [we are] looking at the information coming through and being able to identify where we might have a repeat offender,” Mr Galer said.
“Potentially there’s an opportunity for us to educate the party so that we can reduce their offending behaviours.”
‘Will they blacklist me?’
Melissa Boddy from the state-government-funded advocacy group, QSTARS, said some of its clients were too scared to make a complaint to the RTA.
She said tenants were reporting receiving threatening calls from agents and landlords, harassing emails, and being subjected to unannounced visits.
“When a tenant wants to enforce their rights, they go to the RTA and no action is taken,” Ms Boddy said.
“[They think] ‘What will happen to me if I make a complaint? Will they know? Will they tell other agents? Will they blacklist me?’.”
Mr Galer said the authority’s goal was to ensure people followed the law — not punish those who broke it.
“We don’t expect people in the community to be experts on tenancy legislation,” he said.
‘Full force of the law’
Housing advocates want to see a new mandatory code of conduct for landlords and agents, in an effort to better protect tenants.
But Queensland’s Housing Minister Meghan Scanlon said she expected “the full force of the law to come down on anyone doing the wrong thing”.
The Real Estate Institute of Queensland (REIQ) and renter advocate Tenants Queensland agreed it was important to prosecute in some cases.
“I think that sends a message to the community that if there is wrongdoing, there are repercussions,” REIQ chief executive Antonia Mercorella said.
Tenants Queensland CEO Penny Carr said the RTA needed to use its power to issue fines and penalties.
“They could take that further and start criminal proceedings,” she said.
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