The Minns Labor Government has passed the most significant rental reforms in over a decade in the NSW Parliament.
This historic legislative package follows through on Labor's election commitment to improve rental laws and strikes the right balance between the interests of owners and renters.
These reforms will mean that more than 2.2 million renters across the state will soon enjoy the following benefits:
- No grounds evictions will be banned;
- Rent increases will now be limited to only one per year;
- It will be easier to have pets in rentals;
- Fee-free ways to pay rent; and
- A ban on paying for background checks when applying for a property.
The banning of no grounds evictions will ensure housing security for renters, allowing them to make a house a home. The reforms will also give landlords more clarity on when they can end a fixed term or periodic lease based on clear, straightforward reasons.
Previous protections against multiple rent hikes did 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, so this new legislation now closes those legal loopholes.
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.
Tenants will now have easy and free ways to pay their rent by requiring property owners and agents to offer zero-fee ways to pay such as bank transfer and Commonwealth Centrepay.
The new laws protecting renters from having to pay for background checks and limiting rent rises to one per year will take immediate effect upon the Bill's assent.
The ban on no ground evictions and the rules making it easier to have pets in rentals will come into effect once the Residential Tenancies Regulation 2019 has been amended in early 2025.
The passing of these laws 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 Residential Tenancies Amendment Bill 2024 also complements key initiatives already announced to rebalance the rental marketplace:
- Portable bond scheme - Investing $6.6 million to develop and deliver the nation's first Portable Rental Bonds Scheme. This means eligible renters can move homes and digitally transfer their existing bond with them.
- Establishing Rent Check - A new, free tool renters can use to help check whether the rent they're being asked to pay is fair.
- Rental Taskforce within NSW Fair Trading - The Government will invest $8.4 million for a taskforce with investigators, inspectors and support teams to help renters and act on serious breaches of rental laws.
Premier Chris Minns said:
"Renters have been the forgotten people in NSW for too long, and that ends now.
"We have delivered major changes that make it fairer for the millions of renters across our state.
"Millions of people rent in NSW, and we know how anxious and challenging it can be.
"This brings the rental market into the 21st century.
"These are sensible reforms to get the balance right for renters and owners.
"Housing is the biggest cost people have, and renters are now getting a fairer deal."
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"These landmark reforms are a huge leap forward and will create a fairer and more affordable rental system for the 2.2 million renters in this state.
"By limiting rent increases to only one a year, banning no grounds evictions, making it easier to have pets in rentals, and ensuring people can pay their rent without hidden fees, these historic reforms will make it easier for renters in NSW.
"We want a thriving rental market in NSW where landlords have certainty and tenants have security, and these reforms do just that."
Minister for Homelessness Rose Jackson said:
"Renters deserve a fair go. We know how hard it can be for young people and families who are facing consecutive rent increases, unfair evictions and hidden fees.
"Today we are taking historic steps to ban unfair "no-grounds evictions", ending hidden fees and allowing pets in rentals.
"We inherited a rental crisis and a housing crisis and since day one we've been committed to making renting fairer and more secure.
"This is a huge win for renters in our state - it was an election commitment and today we are making the system fairer and more compassionate for all."
NSW Rental Commissioner Trina Jones said:
"The current rental market in NSW is the toughest that renters have seen for decades, with historically low vacancy rates, and median rent prices for houses increasing by around 7 per cent over the last 12 months.
"These reforms will provide tenants with practical and meaningful support, which will help ease the insecurity and vulnerability of renting in challenging city and regional rental markets."
