The Minns Labor Government will cap rent increases to one per year under reforms to rental laws to be introduced into NSW Parliament today.
The new rule of one rent increase per year will apply across periodic and fixed-term leases and closes a loophole in the existing legislation.
The reform is part of a comprehensive overhaul of rental laws which will benefit the more than 2.2 million renters across the state and includes:
- ending no ground evictions to give renters and owners more clarity by introducing reasonable and sensible reasons to end a fixed term or periodic lease;
- making it easier to keep pets in rental properties;
- ensuring renters have a free way to pay their rent including bank transfer and the Commonwealth Government's Centrepay; and
- protecting renters from having to pay for background checks when they apply for a property.
Current protections against multiple rent hikes do not apply to fixed term leases of less than two years, or when there is a change in the type of lease, such as from periodic to fixed term.
The changes limiting rent rises to one per year will make renting in NSW fairer, simpler, and more certain, and will align NSW laws with the National Cabinet's Better Deal for Renters.
The changes to make it easier to have pets in rentals will mean a tenant can apply to keep a pet, with landlords only able to decline on certain grounds.
Landlords must respond within 21 days, with grounds for refusal including if it would contravene other laws, the property is unsuitable, or the landlord lives at the same property.
Renters who disagree with a decision will have appeal rights before the NSW Civil and Administrative Tribunal.
The introduction of these changes to Parliament follows extensive and detailed discussions with renter advocates, industry stakeholders and tenancy experts, as well as a 'Have Your Say' public consultation process which received more than 16,000 submissions and survey responses.
The introduction of the Residential Tenancies Amendment Bill 2024 will complement key initiatives already announced to rebalance the rental marketplace, including the establishment of a Rental Taskforce within NSW Fair Trading, the launch of the free online Rent Check website and the ongoing development of a Portable Rental Bond Scheme.
The Government is continuing to work with stakeholders across the sector on reforms to better protect renters' personal information.
Quotes attributable to Minister for Better Regulation and Fair Trading Anoulack Chanthivong
"Ensuring renters can only be hit with one rent increase a year will provide greater certainty and protection for renters regardless of whether their lease type changes.
"By ending no grounds evictions, making it easier to have pets, and ensuring people can pay their rent without hidden charges, these landmark reforms will make it fairer for the state's 2.2 million renters.
"This Bill is the result of the Government's extensive consultation on how to best modernise the market with renters, owners, industry groups, experts and advocates. These reforms are focussed on getting the balance right.
"We are now one step closer to a fairer and more affordable rental market in NSW."
