Tenants can look forward to a number of protections if the NSW Government moves forward with its plan to ban no-grounds evictions.
These reforms aim to provide greater rental security for tenants, in response to concerns that some landlords have been terminating tenancies simply to relist properties at much higher rents. But first, let’s break down what no-grounds evictions are and what the proposed changes could mean.
What are no-grounds evictions?
No-grounds, or no-fault evictions, currently allow landlords to end a tenancy without providing a reason. In NSW, landlords can evict tenants by giving:
- 30 days’ notice at the end of a fixed-term lease, or
- 90 days’ notice during a periodic agreement.
The proposed changes: what’s in store?
Under the Minns government’s proposed legislation, landlords will no longer be able to terminate a lease without a valid reason. The new rules would require landlords to meet specific criteria to end a tenancy, including:
- Selling the property or offering it for sale with vacant possession
- The owner or a family member moving in
- Significant repairs, renovations, or demolition
- The property is no longer being used as a rental
- The tenant breaching the lease (e.g., non-payment of rent or property damage)
- The tenant is no longer eligible for an affordable housing program or is no longer a student living in student accommodation.
Additionally, if evicting tenants for repairs or renovations, landlords would need to wait at least four weeks before relisting the property.
What does this mean for tenants?
For now, these changes are only a proposal, so nothing is set in stone. However, if they become law, tenants could see several key benefits:
- Requesting repairs: While some tenants fear that asking for “too many” repairs could lead to eviction, with these changes, tenants can confidently request necessary fixes without the threat of getting “on the bad side” of a landlord.
- Negotiating rent: If a landlord proposes a significant rent hike that seems unfair, tenants have the right to negotiate. The new rules would prevent landlords from using the threat of eviction as a tactic to push through unreasonable increases.
- Housekeeping: Landlords won’t be able to evict tenants over what they consider “too much clutter” as long as it doesn’t cause damage or pose a health risk, like attracting vermin or creating a fire hazard.
- Late rent payments: Tenants sometimes fear that even minor delays in paying rent could lead to eviction. While landlords can still act if rent remains unpaid for more than 14 days, these changes would ensure minor delays due to unforeseen circumstances don’t lead to an eviction.
The bottom line
These changes are designed to provide protection for tenants against landlords acting unethically. Landlords will still have the right to evict tenants if they are causing significant damage, failing to pay rent, or breaching their lease in other ways. However, the proposed changes could mean greater peace of mind for tenants when requesting repairs, negotiating rent increases, or simply living comfortably in their homes without fear of sudden eviction.
At Prudential Real Estate, we’re here to guide both tenants and landlords through these potential changes. If you have any questions about your rights or property management, reach out to our team for expert advice and support.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
