New laws ban landlords for evicting tenants without good reason

Premier Chris Minns will reveal new laws on evictions today, which will boost the rights of tenants and may upset some landlords.

Landlords will be banned from evicting renters without a “reasonable” excuse from next year, in one of the biggest state government reforms to the rental market in a decade.

In a keynote speech to be delivered at the NSW State Labor Conference on Sunday, Premier Chris Minns will reveal new laws which will boost the rights of tenants and may upset some landlords.

Under the proposed reforms, homeowners will need one of several “commonsense” and “reasonable” reasons to end a tenancy for both periodic and fixed term leases. They will have to provide evidence with a termination notice.

Those who give non-genuine reasons will face a penalty.

The issue has been a policy thorn in the government’s side, after promising the reform at the election but then juggling stakeholder management as it mapped what the laws looked like.

Hopeful renters inspecting a property in Sydney. Picture: Jeremy Piper

The move will be welcome relief for renters, who have copped soaring rents and fewer options once evicted, with low vacancy rates amid a critical housing shortages gripping the state.

Since 2016, the number of renters in NSW has grown 17.6 per cent. The rental market in NSW is the toughest that renters have seen for decades, with median rent prices increasing by about 7 per cent over the last 12 months.

The proposed new laws will also specify that 90 days will have to be retained as the notice period for termination of a periodic lease.

The termination notice period for a fixed-term agreement of less than six months will be increased from 30 days to 60 days; and for a fixed-term agreement of more than six months to 90 days.

The exemptions follow extensive consultations and round-tables, with the government receiving more than 16,000 submissions and survey responses.

The government will now begin further stakeholder engagement on the reforms, with a plan to introduce the new legislation in the September sittings of parliament. The new reforms are expected to begin early next year.

The changes bring NSW into line with other states, including Queensland and Victoria who have legislated their own model to end no-grounds evictions.

Premier Chris Minns wants greater certainty for renters. Picture: Richard Dobson

Under the existing law, the owner of a rental property can choose to end a residential periodic lease at any time for any reason or no reason at all — a move that creates insecurity and financial pressure for renters whose lives can be up-ended at any time.

Mr Minns said “bad tenants” will still be able to be shown the door.

“We don’t want homeowners to have to put up with bad behaviour. But anyone who rents in NSW knows just how anxious and challenging renting can be at the moment.

“We’ve all seen the lines on a Saturday morning, with hundreds of people waiting to inspect new properties.

“We believe this reform gets the balance right, but importantly, this will give both homeowners and renters more certainty, more peace of mind, so they can build a home and a life on surer ground.”

Eamon Waterford, CEO of the Committee for Sydney, said this could be the “single most effective action” taken by the government to fix the housing crisis.

“More than a third of Sydneysiders rent now, within a generation it will be something most people do for life. If people are going to rent their whole lives, they need homes that are fit-for-purpose for all stages of life, homes that allow them to put down roots and build community and connection.

“Unfair rental laws are not only hurting people’s wellbeing, they’re slowing the state’s productivity.”

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Originally published as New laws ban landlords for evicting tenants without good reason