The Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024, introduced by Jenny Leong of the NSW Greens, aims to significantly reform the grounds under which landlords can terminate residential tenancy agreements in New South Wales. Here’s a breakdown of the key points and proposed changes:
Purpose of the Bill:
The primary goal is to abolish “no-grounds” evictions, where landlords can terminate fixed term and periodic tenancy agreements without specifying a reason.
Termination Grounds:
Under the proposed Bill, landlords can only terminate a tenancy agreement for specific grounds:
- Owner Occupation: The landlord, a family member, or a deponent intends to occupy the premises for at least 12 months.
- Renovations or Repairs: The premises require substantial renovations or repairs that will render them uninhabitable for at least 4 weeks.
- Change of Use: The premises will be unable to be used as a residence for at least 6 months.
- Other reasons to be determined by the Minister: This allows for flexibility in adding additional valid grounds as determined necessary.
Notice Period:
The notice period for termination under the proposed Bill is 90 days for both fixed term and periodic tenancy agreements. This is an increase from the current 30 days for fixed term agreements and 90 days for periodic agreements.
Penalty Scheme:
The Bill introduces penalties for landlords who terminate tenancy agreements under false pretenses (i.e., without intending to use the premises for the stated grounds). Penalties may include:
- Compensation ordered by the Tribunal.
- Deeming the premises subject to a new residential tenancy agreement under specified conditions set by the Tribunal.
What this means for a landlord, is that if a Tenant is evicted, the property cannot be put back on the market for rent another 12 months. This can lead to a decrease in the number of rental properties available in the market. This is especially critical in an already undersupplied rental market, potentially exacerbating housing shortages and driving up rental prices due to reduced supply.
If you or someone you know is having issues with their tenancy agreement and needs advice, contact Meehans today on 4627 3333.
Changes in legislation to protect Tenants with animals:
The Residential Tenancies Amendment (Animals in Residential Premises) Bill 2024 aims to ensure landlords cannot unreasonably deny tenants the right to keep animals in rental properties. Under this bill:
- Tenants may keep animals if the landlord provides written consent, which must not be unreasonably withheld.
- If the landlord does not respond to the tenant’s request within 14 days, consent is assumed.
- Alternatively, landlords may apply to the Civil and Administrative Tribunal for an order that it is reasonable to refuse consent. The Tribunal can either grant permission to keep the animal or decide that the landlord’s refusal is reasonable.
Currently, there is no term in the Residential Tenancies Act 2010 that prohibit tenants from keeping a pet, or that requires tenants to obtain their landlord’s consent to same. However, many landlords will include a clause in the residential tenancy agreement (i.e. lease) that restricts pets. This bill will prohibit such clauses, and landlords will only be able to refuse consent if in the eyes of the Tribunal, it is reasonable to do so.
Although the Residential Tenancies Act 2010 provides that tenants are mostly responsible for any damage caused to the property by their pet, in many instances landlords have had to bear the costs associated. This bill may incur greater costs for landlords, likely leading to an increase in rental prices.
If you or someone you know has an issue with a tenancy agreement and requires advice contact Meehans today on 4627 3333.
This article was published on 27/06/24 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter and is not and should not be considered or relied on as legal, advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
