Renters in the Hunter are set to be bolstered by new state government laws to end no-grounds evictions.
Under existing law, the owner of a rental property can choose to end a periodic lease at any time for any reason, or for no reason at all.
With around a third of people in NSW renting, the state government is proposing reforms so homeowners will need a reason to end a tenancy in a bid to create a fairer rental system and balance the rights of all involved.
Reasons to evict a tenant will include;
- The existing rules where the renter is at fault, because of a breach of lease, damage to the property, or non-payment of rent.
- Where the property is being sold or offered for sale with vacant possession.
- Where significant repairs or renovations make inhabiting the property too difficult or it will be demolished. If a homeowner seeks to renovate or repair a home, it cannot be relisted for a period of at least 4 weeks.
- If the property will no longer be used as a rental home, i.e a change of use.
- Where the owner or their family intend to move into the property.
- If the renter is no longer eligible for an affordable housing program or if the property is purpose-built student accommodation and the renter is no longer a student.
If the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
For those on fixed term agreements of less than 6 months, the termination notice period to tenants will be increased from 30 days to 60 days. For fixed term agreements of more than 6 months, the termination notice period will be increased from 60 days to 90 days. There will be no change to notice periods for those on periodic agreements.
Data shows 33% of people in NSW rent and a 17.6% increase in renters in NSW since 2016. The change boasts one of the biggest reforms to the rental market in a decade.
The reforms are slated to begin early next year.
Premier Chris Minns says, the reforms will help balance the need of renters and homeowners.
“Bad tenants will still be able to be evicted. We don’t want homeowners to have to put up with bad behaviour,” premier Minns says.
“But anyone who rents in NSW knows just how anxious and challenging renting can be at the moment. We’ve all seen the lines on a Saturday morning with hundreds of people waiting to inspect new properties.
“We believe this reform gets the balance right, but importantly, this will give both homeowners and renters more certainty, more peace of mind, so they can build a home and a life on surer ground.”
NSW Rental Commissioner Trina Jones says, the changes will make a fairer system for everyone.
“Putting together this package has required bringing together renters, owners, agents, advocates, and industry leaders to make renting fairer in NSW.
“The commitment to ending no grounds evictions is a major step in a broader effort to create a fair, quality, and affordable rental market where both tenants and landlords are treated with respect and fairness.
“It’s about striking a balance that upholds the rights and responsibilities of all involved.”