In a significant development for renters in New South Wales, landlords are now prohibited from evicting tenants without a valid reason. This move marks a pivotal win for millions of renters in the state, following the passing of a historic bill amendment that has reshaped the rental landscape in NSW.
The Residential Tenancies Amendment Bill 2024, which brought about these substantial changes, addresses various aspects of the rental system, encompassing reforms related to rent increases, payment regulations, and the accommodation of pets in rentals. Under the amended rules, landlords are mandated to justify the termination of tenancies with valid reasons, with penalties imposed on those failing to adhere to this requirement.
Grounds for termination now include breaches of tenancy agreements, property sales, landlord or family occupancy, and significant property renovations. Additionally, tenants in NSW now have the right to request permission to keep pets, with landlords only able to refuse under specific legislated circumstances.
Furthermore, rent increases are now limited to once every 12 months, irrespective of the lease duration, while fees for background checks have been prohibited. While these reforms are viewed as a positive step for renters by the Tenants’ Union of NSW, concerns have been raised about potential loopholes that could be exploited by landlords.
The Chief Executive of the Tenants’ Union of NSW, Leo Patterson Ross, emphasized the significance of these reforms in providing stability and security to renters, alleviating concerns about arbitrary evictions and unjustified lease terminations. Patterson Ross highlighted the detrimental impact of no-grounds evictions on renters, emphasizing the critical need for protection against unfair eviction practices.
KerryAnn Pankhurst from the New England and Western Tenants Advice and Security Service pointed out that vulnerable renters in NSW, including older tenants and those with disabilities, stand to benefit significantly from the cessation of no-grounds terminations. The reforms are anticipated to come into effect in early 2025, aligning NSW with other Australian states such as the ACT, Victoria, Queensland, South Australia, and Tasmania.
Notably, Western Australia and the Northern Territory have yet to implement similar bans on no-grounds evictions, underscoring the varying regulatory landscape across different regions in Australia. The changes in NSW are poised to bring about a more equitable and tenant-friendly rental environment, fostering greater security and stability for renters in the state.
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