Earlier this week, the NSW parliament passed long awaited rental reforms which are expected to provide massive reform to the rental system in NSW. Most other states have already passed similar reforms. Here’s what the changes involve:

Limits to when rents can be increased

Under the reforms, Landlords & Property Managers will only be able to increase rent once every 12 months, regardless whether the tenancy is periodic or fixed.

Ending no grounds evictions

In what is set to be the biggest reform, the NSW government is set to end no-grounds evictions. Under the proposed reforms, homeowners will now need a reason to end a tenancy for both periodic and fixed term leases. Some of these reasons 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.

Requiring that tenants have access to fee-free ways of paying rent

Depending on the way rent is paid, tenants may be required to pay extra fees every time the rent is paid.

The Government will require property owners and agents to offer free ways to pay, such as bank transfer and the Commonwealth Government’s Centrepay.

Making it easier to have pets in rentals

While renters will still need to apply to have pet in their home, the Government will be updating standards to make it easier for tenants to have pets in rental properties.

While owners will no longer be able to refuse pets without any reason, they will still be able to decline in certain specific situations. These will include where having the pet would break another law (e.g. local government regulations), or if the owner lives in the property and does not want to live with the animal.

Introducing a Portable Bonds Scheme

Renters will soon be able to move homes and transfer their bond with them with the government investing $6.6 million to develop and deliver the nation’s first Portable Rental Bonds Scheme.