The NSW government has proposed an end to no-grounds evictions in an attempt to help provide greater rental security across the state.
So, what are the changes and what will they mean for renters and landlords?
No-grounds or no-fault evictions allow a landlord to kick a tenant out during an ongoing lease or at the end of a fixed-term lease at any time, without having to give a reason.
The tenant can be evicted even if they've paid their rent on time, have taken care of the property and the landlord still intends on continuing to rent it out.
In NSW, one renter is issued with a no-grounds eviction every 18 minutes, according the state government's End of Tenancy Survey in 2022.
The Minns government is moving to ban no-fault evictions and intend to introduce the legislation to parliament next month.
The change would bring NSW in line with other states and territories, including the ACT, Victoria, Queensland and South Australia.
Photo shows A professionally-dressed woman in a grey blazer stands on the property of a one-storey suburban home
Landlords in New South Wales say a looming policy change by the state government to ban a practice known as "no-grounds evictions" will erode the rights of property owners and reduce the amount of rental stock on the market.
Under the proposed changes, landlords would be forced to meet one of several thresholds to evict someone:
Landlords could also end tenancies if the renter is no longer eligible for an affordable housing program or if the renter is no longer a student but is living in student accommodation.
If the eviction is sought on renovation or repair grounds, the landlord would not be able to re-list a property for at least four weeks.
If the landlord gives "non-genuine" reasons, they'll face penalties, but the NSW government hasn't outlined what those penalties would be.
Premier Chris Minns said the penalties would be broadly in line with other jurisdictions but flagged that the details would be determined after further consultation.
"Obviously enough to make sure that people don't routinely or brazenly break the law, or as a cost of business they excise their tenant from their place in order to pay a nominal fine," Mr Minns said.
There won't be an official body actively checking if landlords are in breach of the above changes.
It means it would rely on individual complaints.
If a renter felt they had been evicted for the wrong reasons, they would need to go to NSW Fair Trading to investigate.
If there was an argument between a landlord and tenant and they are seeking mediation, they would need to take it to the NSW Civil and Administrative Tribunal.
Fifteen months after both major parties in NSW promised to end no-fault evictions, the government is yet to put forward new legislation, as more renters are pushed out of their homes amid a rental crisis.
Landlords would also be required to provide more notice when evicting someone, except for those on periodic agreements.
For those on fixed-term agreements of less than six months, the termination notice would be doubled from 30 to 60 days.
For fixed-term agreements of more than six months, the notice would be raised from 60 to 90 days.
The NSW government has also announced a Portable Rental Bonds Scheme, which would become the first of its kind in Australia.
It would mean that millions of renters would be able to directly transfer their bond over to a new property when they move homes, instead of being left out of pocket before they are refunded for the bond on a previous home.
The government said the rental commissioner will lead the development of the scheme and the development will involve an upgrade of the existing rental bonds system.
It's expected the work will be completed in 2025.
Posted Tue 30 Jul 2024 at 4:06am Tuesday 30 Jul 2024 at 4:06am Tue 30 Jul 2024 at 4:06am , updated Tue 30 Jul 2024 at 4:12am Tuesday 30 Jul 2024 at 4:12am Tue 30 Jul 2024 at 4:12am
