A guide for property managers on approving occupants for tenancies

From 1 May 2025, property managers in Queensland will need to adapt to new legislative changes that impact how they approve occupants for residential tenancies.

New sections 57B and 57C of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) (RTRA Act), restrict the information property managers can request from applicants when applying for a residential tenancy.

This article provides a comprehensive guide on how to navigate these changes compliantly.

Key Legislative Changes

Under the new legislation, property managers can only ask for:

• the total number of occupants (including the applicants and persons under 18); and
• the total number of occupants under the age of 18.

This is reflected in Item 4 of the RTA Form 22 Rental Application.

Property managers are not permitted to ask for the names of occupants during the tenancy application process.  This presents a challenge, as property managers cannot require the applicant/s (who will become the tenant) to provide this information until they are approved as a tenant.

Options for the lessor

If an application for a tenancy includes occupants over the age of 18 who are not ‘applicants’, a lessor/property manager has three primary options for handling this scenario compliantly.  The property manager should outline the options and related risks and ultimately, obtain the client’s instructions for how to proceed with that application.The three options are as follows:

1. Approve occupants without knowing who they are

• This option involves approving the tenancy based on the total number of occupants without knowing each of their identities.
• While this complies with the new rules, it may pose risks to the property as the property manager will be unable to verify that person’s suitability as an occupant of the property.
• The risk level may be assessed on a case-by-case basis.For example, the property manager may meet the occupant at an open home or private inspection and determine that there is a lower risk associated with that individual (for example, an elderly family member, a younger adult child that is a student).

2. Ask all occupants over the age of 18 to submit an application to become a tenant

• This approach ensures that all adults residing in the property are formally recognised as tenants.
• It allows property managers to gather necessary information about each occupant, ensuring compliance with the new legislation.
• It is only appropriate, however, if the occupant agrees to become a tenant (if successful). In some cases, an occupant may not have capacity to be a tenant even if they are over the age of 18.Additionally, some occupants may not wish to be named as a tenant.

3. Reject Applications with Occupants Over 18:

• Lessors/property managers may decide not to accept applications that include occupants over the age of 18, who are not applying to be tenants.
  
• This approach may minimise risk but also may limit the pool of potential tenants.
  

The REIQ acknowledges that the above options are not an ideal solution, however, they are the only solutions that comply with the legislation. If property managers ask an applicant for the names of occupants as part of their application, before being approved as a tenant, then this may constitute a breach of the RTRA Act and the lessor/property manager will be liable for penalties of 20 units, being $3,226.  

Handling Applications During an Existing Tenancy

When a tenant would like someone to move in as an occupant during an existing tenancy, property managers are not bound by the information restrictions under sections 57B and 57C of the RTRA Act.  This means that property managers can request any information necessary to assess the suitability of the occupant.

From 1 May, the REIQ’s Application for Prospective Occupants is available for Realworks users, which includes questions to help property managers assess the occupant’s suitability. This form does not seek any financial information about an occupant, since approved occupants are not financially liable for rent under the Form 18a General Tenancy Agreement.

If an approved occupant later wishes to become a tenant, the standard tenancy application process can be undertaken to assess their financial ability to pay rent and suitability to become a tenant.

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