No-grounds evictions are off the table for landlords in one Australian state in a fresh victory for millions of renters.
Following years of advocacy, a historic bill amendment has passed in parliament which bans evictions without reason in NSW.
The Residential Tenancies Amendment Bill 2024 introduced major changes to the rental system in NSW, including reforms on rent increases, payment rules and pet-friendly rentals.
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Under the new rules, landlords must provide a valid reason for ending a tenancy and penalties will apply to those who do not provide reasonable reasons for lease termination.
Things which are considered “grounds for termination” include breach of tenancy agreements, sale of the property, the landlord or family moving in, or significant renovations.
Renters in NSW will also have the right to request permission to have pets and landlords can only refuse under a list of legislated reasons.
Rent can also now only be increased once every 12 months, regardless of the lease length, and background check fees will be banned.
The Tenants’ Union of NSW said the reforms were a positive step for renters but warned there could be loopholes abused by landlords.
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“We’ll be keeping a close eye on how landlords use these new grounds, especially in cases where sales or repairs are cited as a reason for eviction,” the union said in a statement.
Chief executive of the Tenants’ Union of NSW Leo Patterson Ross said the reforms will likely result in a big sigh of relief for renters worried about unstable housing.
“Millions of renters have felt the impact of no-grounds evictions in their lives – whether it was hesitating to ask for repairs or negotiate a rent increase, or having to find a new home without justification,” Patterson Ross said.
“This is the single most significant change we can make to residential tenancies law, as without protection from unfair eviction in place we can’t rely on other parts of the law to function properly.”
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KerryAnn Pankhurst from the New England and Western Tenants Advice and Security Service said the end of no-grounds terminations would significantly impact vulnerable NSW renters, including older tenants and those who live with a disability.
The reforms will likely commence in early 2025.
The change in NSW brings the state into line with the ACT, Victoria, Queensland, South Australia and Tasmania.
Both Western Australia and the Northern Territory have not yet outlawed no-grounds evictions.
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