Tenants bill passes parliament. CEO of the NSW Tenant’s Union Leo Patterson Ross. Picture: Richard Dobson
New rental reforms are set to pass NSW parliament in what will be a “historic win for renters.”
On Thursday the Residential Tenancies Amendment Bill 2024 passed the lower house after years of advocating from community organising, renters, housing advocates and local tenants advice and advocacy services.
The Bill will introduce a range of reforms focused on eviction protections, pet-friendly renting, rent increases, and payment rules.
1. ENDING ‘NO GROUNDS’ EVICTIONS
Under the new rules landlords must provide valid reasons for ending a tenancy and significant penalties may apply to landlords or agents who misuse these new termination grounds.
The new grounds for termination include breach of tenancy agreements, proposed sale of the property, significant renovations or demolition, landlord or their family moving in, and situations where the property will no longer be used as a rental.
Evidence will be required when serving most new grounds, and a re-letting exclusion period may apply.
The tenants union posed potential “concerns,” that there were “loopholes,” in this reform.
“Landlords may claim they intend to sell, only to later abandon the sale without significant consequence. Allowing eviction for repairs risks landlords neglecting their maintenance obligations only to later use renovations as an excuse to evict tenants, according to the tenants union.”
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No more no grounds evictions for NSW tenants.
2. PET-FRIENDLY RENTING
All renters now have the right to request permission to keep pets, however landlords can still refuse with a list of reasons set by legislation.
If consent or a reason for refusal isn’t provided within 21 days, it will be automatically granted. If the tenant does not agree with the refusal reason, they will need to apply to the Tribunal.
The tenants union however claims the Bill leaves too much room for landlords to make arbitrary decisions about pets, who said “renters should not have to fight unreasonable refusals in the Tribunal.”
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3. LIMITS ON RENT INCREASES AND PAYMENT PROTECTIONS
Rent can now only be increased once every 12 months, regardless of the lease type.
Free and accessible payment options must be provided for rent and background check fees are banned, removing a common barrier for renters applying for homes.
These changes will reduce the financial pressure on renters and bring much-needed predictability to rent payments, according to the Tenants Union of NSW.
Rental supply and steep rental increases that have been seen across NSW were not however addressed.
Reforms were likely commence early 2025. Before commencement the NSW Government are set to develop and introduce new regulations, which will set out evidence requirements for the newly introduced termination grounds.
Huge win for NSW renters, according to NSW Tenants Union CEO.
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Tenants Union of NSW CEO Leo Patterson Ross however said overall this was a win for tenants, but the fight was not over.
“Millions of renters have felt the impact of no grounds evictions in their lives – whether it was hesitating to ask for repairs or negotiate a rent increase, or having to find a new home without justification,” he said.
“This is the single most significant change we can make to residential tenancies law, as without protection from unfair eviction in place we can’t rely on other parts of the law to function properly.”
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