NSW Tenancy Law Changes

This week the NSW government passed legislation to end to no-grounds evictions by landlords to help provide greater rental security across the state. The news has had a mixed reception with tenancy advocates being delighted by the change and landlord agencies suggesting this will be another barrier to people buying investment properties resulting in more pressure in a tight rental market. Below is a summary of the changes from ABC News.

So, what are the changes and what will they mean for renters and landlords?

No-fault evictions

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 to the state government's End of Tenancy Survey in 2022.

What are the changes?

The Minns government has legislated to ban no-fault evictions. The change brings NSW in line with other states and territories, including the ACT, Victoria, Queensland, and South Australia.

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 changes, landlords will be forced to meet one of several thresholds to evict someone:

• The sale of the property or the offer for sale with vacant possession
• When the owner or their family members intends to move in
• Existing rules for breach of lease, including non-payment of rent and damage to the property
• Significant repairs, renovations, or demolition
• The property is no longer being used as a rental

Landlords can 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 will not be able to re-list a property for at least four weeks.