NSW has introduced changes to rental laws, aligning with states like the ACT, South Australia, and Victoria, which have already legislated to end no grounds evictions.

Ending no grounds evictions

Previously, property owners in NSW could terminate a residential periodic lease at any time, without needing to provide a reason. This often led to insecurity and financial pressure for renters.

Under the new proposed reforms, homeowners will now need a valid reason to end a tenancy, whether it’s a periodic or fixed-term lease. The permissible reasons include:

• Breach of lease: If the renter violates lease terms, damages the property, or fails to pay rent.
• Sale of property: When the property is being sold or offered for sale with vacant possession.
• Significant repairs or renovations: If major repairs or renovations render the property uninhabitable or if it will be demolished. In such cases, the home cannot be relisted for at least four weeks.
• Change of use: When the property will no longer be used as a rental home.
• Owner or family moving in: If the owner or their family intends to move into the property.
• Eligibility changes: If the renter is no longer eligible for an affordable housing program, or if the property is purpose-built student accommodation and the renter is no longer a student.

Homeowners must provide evidence with a termination notice and face penalties for providing non-genuine reasons.

Notice periods

For fixed-term agreements of less than six months, the termination notice period will increase from 30 days to 60 days. For agreements longer than six months, it will increase from 60 days to 90 days. Notice periods for periodic agreements remain unchanged.

The Minns Labor Government will now begin stakeholder engagement on these reforms and will aim to introduce new legislation in the September sittings of Parliament to end no grounds and provide more security and stability for renters.

The new reforms are set to begin early next year, subject to this consultation.