This comes as the Government finalises a suite of measures to modernise the system, to be introduced into the Parliament in October.
The Government made an election commitment to improve rental laws and strike the right balance between the interests of owners and renters.
More people are renting than ever before, with around one third of the NSW population living in rentals.
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.
The Government has heard too many stories of renters being given limited options to pay their rent, without incurring additional fees and charges.
The Government will require property owners and agents to offer free ways to pay, such as bank transfer and the Commonwealth Government’s Centrepay.
It is not fair that renters are being charged additional fees simply to pay their rent, especially amid current cost-of-living pressures.
Following targeted consultation with key stakeholders, which concluded last Friday, the Government can also confirm that reforms making it easier to have pets in rentals will be incorporated into the upcoming bill.
According to the RSPCA, one in five animals they receive in NSW has been surrendered due concerns about rental applications.
Domestic violence organisations have also reported that a major barrier for victim-survivors getting out of dangerous homes is their concern about securing housing with their pet.
The Have Your Say public consultation process reaffirmed that renters find it too hard to have pets in their home with more than 16,000 submissions and survey responses received from the general public.
While renters will still need to apply to have pet in their home, the Government’s changes will make it much easier, and bring NSW into line with most other states where similar reforms have been undertaken.
While owners will no longer be able to refuse pets without any reason, they will still be able to decline in certain specific situations. These will include where having the pet would break another law (e.g. local government regulations), or if the owner lives in the property and does not want to live with the animal.
The bill will also include measures previously announced:
- Ending no grounds evictions: Establishing a set of reasonable grounds to end a lease, giving greater certainty to renters and owners. Property owners will now need a reason to end a tenancy for both periodic and fixed term leases.
- Crackdown on fees: Renters will no longer be being charged for background checks when they’re applying for a rental property.
This detailed work is about ensuring the Government gets the balance right in the rental market.
These important changes follow key initiatives already introduced. This includes the free, online Rent Check tool, and an $8.4 million investment to establish a Rental Taskforce within NSW Fair Trading, with investigators and inspectors to act on serious breaches of rental laws.
Premier Chris Minns said:
“We were elected with a mandate to modernise the rental market, and that’s what this bill will do.
“You don’t pay additional fees every time the mortgage comes out, and you shouldn’t have to pay to pay the rent.
“We are building a fairer rental market for both tenants and owners.
“We believe this bill make things a bit less stressful for renters, while getting the balance right.”
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
“We know that renters have been calling out for change so we’ve developed a broad package that will make renting fairer and increase clarity for property owners.
“There are 2.2 million renters across the state and we’re getting on with the job to create a more modern rental market that works for property owners and renters alike.”
Minister for Housing and Homelessness Rose Jackson said:
“Reforming the rental system is a vital step to rebuilding our housing system in NSW.
"Providing more options and greater certainty in tenancies will help reduce the stress so many are facing in today’s challenging rental market.
“We want to ensure sure that the growing number of renters in our state have the stability and transparency they deserve.”
NSW Rental Commissioner Trina Jones said:
“This is another important step towards a fair, quality, affordable rental experience in NSW.”
“We are working closely with renters, landlords, the RSPCA, animal welfare organisations, agents and advocates to ensure these proposed reforms can be implemented successfully.”
