The New South Wales government is set to ban no-grounds evictions as part of a broader effort to protect tenants’ rights. Although the move is a controversial one, it would be bringing NSW in line with most of the rest of the country such as the ACT, Victoria, Queensland, and SouthAustralia.
Understanding No-Fault Evictions
No-grounds or no-fault evictions is when a landlord evicts a tenant from a property during an ongoing (or ‘periodical’) lease or at the conclusion of a fixed-term lease without providing any reason. This means a tenant could be asked to leave even if they’ve consistently paid rent on time, maintained the property, and the landlord intends to continue renting out the space.
What Changes Are Being Proposed?
The Labor government is seeking to abolish no-fault evictions, with plans to introduce the necessary legislation in the upcoming parliamentary session.
Under the proposed regulations, landlords would need to meet specific criteria before evicting a tenant, including:
- The sale of the property or offering it for sale with vacant possession.
- The landlord or their family members planning to move into the property.
- Breaches of the lease agreement, such as non-payment of rent or property damage.
- Necessity for significant repairs, renovations, or demolition.
- The property no longer being used as a rental.
Additionally, landlords would be allowed to terminate leases if the tenant is no longer eligible for an affordable housing program or if they are no longer a student living in student accommodation. If an eviction is pursued due to renovations or repairs, the property cannot b ere-listed for at least four weeks.
Penalties for Landlords
Landlords who provide "non-genuine"reasons for eviction will face penalties, although the specifics of these penalties have not yet been outlined by the NSW government. Premier Chris Minns indicated that the penalties would be consistent with those in other jurisdictions, with further details to be decided following additional consultations.
"Obviously, the penalties will need to be sufficient to deter people from routinely or brazenly violating the law or using it as a business tactic to remove tenants simply by paying a small fine," Minns stated.
Enforcement of the New Rules
There will be no dedicated body to actively monitor landlords' compliance with these new rules. Instead, enforcement will rely on individual complaints. If a tenant believes they have been wrongfully evicted, they would need to approach NSW Fair Trading for investigation. Incases of disputes between landlords and tenants that require mediation, the matter would be brought before the NSW Civil and Administrative Tribunal.
