Rental Changes: Laws to Prohibit No-Ground Evictions

In a move to provide renters with a greater degree of security, the state government have announced that they intend to enact laws to prohibit no-ground evictions.

Currently property owners can lawfully terminate a periodic lease at any time without providing a reason to the tenant.

With the proposal, owners will need to provide a genuine reason to the tenant with the termination notice for both periodic and fixed term leases. There will be penalties if a non-genuine reason is given.

The government have outlined the reasons that can used. They 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.

The government hopes that this approach will strike an appropriate balance between landlords managing their property and providing renters with more stability – especially given that around one-third of people in NSW rent.

“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,” said Premier Chris Minns.

“Bad tenants will still be able to be evicted. We don’t want homeowners to have to put up with bad behaviour.”

“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.”

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.

The government is now embarking on a stakeholder engagement process and hopes to introduce the new legislation in the September.

There has previously been a consultation process with more than 16,000 submissions and survey responses received from the general public and multiple sector-based roundtables.

Trina Jones is the NSW Rental Commissioner.

“Putting together this package has required bringing together renters, owners, agents, advocates, and industry leaders to make renting fairer in NSW,” said Trina Jones.

“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.”

ACT, South Australia and Victoria all have laws on no ground evictions.