REIQ
QUEENSLAND landlords and property managers have been warned they may not be legally entitled to withhold the keys to a rental property simply because a tenant has not paid their bond.
With rental bonds routinely required before tenants move into a property, the assumption that “no bond means no keys” might seem straightforward.
But legal experts say Queensland tenancy law is considerably more complicated.
An article published by the Real Estate Institute of Queensland (REIQ), written by Carter Newell Lawyers senior associate Emily Holzberger and solicitor Mollie Taylor, warns withholding access to a rental property over an unpaid bond could potentially put landlords and property managers on the wrong side of tenancy laws.
Under Queensland’s Residential Tenancies and Rooming Accommodation Act 2008, rental bonds are capped at four weeks’ rent and must be lodged with the Residential Tenancies Authority within 10 days of being received.
However, the legislation does not require a landlord to take a bond.
While most residential tenancy agreements include payment of a bond as a condition of the lease, the lawyers said that did not necessarily mean possession of the property could automatically be withheld if the money had not been paid.
The critical question is whether payment of the bond was established as a genuine “condition precedent” – effectively a requirement that must be met before an agreement is formed or particular contractual obligations begin.
The REIQ article said that without express wording making payment of the bond a condition precedent, a tenancy could already be legally in effect, meaning the obligation to hand over possession arose on its commencement date.
The REIQ article cautioned landlords and property managers to seek legal advice before withholding keys.
