The NSW Government says the legal changes will make the rental system more equitable for owners and tenants. Photo: NSW Land and Housing Corporation.
The Minns NSW Government has announced reforms to renting in the state in an effort to make it “fairer” for tenants.
Making good on a key election promise to the 2.3 million renters in the state, the government has announced a raft of new laws.
- Ending no-grounds evictions – The owner of a rental will be required to provide a valid reason to end all lease types, as well as longer notice periods for some types of leases, with the intent of giving renters more time to find a new home.
- Pets in rentals – Tenants can apply to keep a pet in a rental and owners are only able to refuse for specific reasons, such as the owners living at the property or local council laws. A standard application form and process have been created to make the system clearer for renters and owners. Approvals will be automatic if owners do not respond to an application within 21 days.
- Fee-free payment – Agents and owners must provide a fee-free method for renters to pay, such as direct bank transfer, to ensure that convenient payment methods are available without extra, hidden costs.
- Limits to rent increases – Rent increases are limited to once per year across all lease types, including fixed-term and periodic leases.
- Rent Check – A free website helping tenants better understand how the rental price of a particular property compares with other homes of a similar type.
- Portable Rental Bonds Scheme – Some $6.6 million is being invested in developing and delivering the nation’s first Portable Rental Bonds Scheme, meaning eligible renters can move house and transfer their bond with them.
- Background checks – Rental applicants can no longer be charged fees before entering a tenancy, including for background checks.
The government has also established a Rental Taskforce, aimed at enforcing penalties now in place for agents or owners breaking the law. Inspectors and teams will help renters and act upon discovering serious breaches of rental law.
“Today marks a significant change which brings the rental market into the 21st century and makes renting fairer,” Premier Chris Minns said.
“More people than ever are renting, and they are renting for longer, so these reforms improve security and fairness in the rental market.
“These are sensible reforms and with more than 2 million renters in NSW and over 600,000 investors, we have taken the time to get these major changes right.”
The government is encouraging tenants and landlords to visit the NSW Fair Trading website for up-to-date guidance on rental law and their rights and obligations.
