The Residential Tenancies Amendment Bill (the Bill) was passed in Parliament On 24 October 2024, introducing amendments to the Residential Tenancies Act 2010.
Though the passing of the Bill was significant, the proposed changes have yet to come into effect yet. The NSW Government will engage the next phase of developing and implementing new regulations which will provide more guidance on how the new laws will work in practice.
What does the Bill change?
The key changes proposed in the Bill include:
- Limiting rent increases to once a year;
- Banning background check fees for rental applicants;
- Requiring landlords to give a reason for ending a tenancy;
- Making it easier to have pets in rental homes; and
- Requiring landlords to offer fee-free payment options.
As of 31 October 2024, the 12-month cap on rental increase, and the banning of background check fees for rental applicants were made effective. However, the remaining changes are yet to be in enforced.
This article will discuss some of the proposed changes and the impact this will have on rental applications and tenants.
Division 8: Keeping pets at residential premise
Under the Bill, a new standard term in residential tenancy agreements has been established to enforce the tenants right to make a request to the landlord to keep an animal at the residential premises. While the landlord may decline the tenants request, they must provide a reason for refusing in accordance with the reasonable grounds listed under section 73F of the Bill. These include:
- Keeping of the animal results in an unreasonable number of animals kept on premises;
- The premises is not adequately fitted to house an animal (i.e. fencing, lack of space);
- Damage is likely to occur that could lead to high repair costs exceeding the rental bond of the premises;
- Landlord is a resident in the premises;
- Allowing the animal to be kept on premises contravenes other legislation, local council orders, schemes or residential community rules; and
- The tenant has not agreed to a reasonable condition proposed by the landlord.
This amendment expands tenants’ rights and protections by providing the opportunity to request to keep pets at the residential premises. It prevents landlords from immediately prohibiting pets on the premises without reasonable grounds.
Subdivision 1: Termination Notices
Section 84-94 of the Bill proposes the various grounds which the landlord can rely on to issue a termination notice which applies to both fixed term and periodic tenancies.
If a landlord seeks to issue a termination notice it must be supported with sufficient evidence. Should the evidence provided prove not to be a genuine reason, the landlord will face significant penalties. The new defined grounds that a landlord will be able to rely on to issue a termination notice under section 87 of the Bill include:
- Breach of tenancy agreement (s 87C);
- Actual sale of premises (s 87D);
- Proposed sale of premises (s 87E);
- Significant renovations or repairs to premises (s 87F);
- Demolition of premises (s 87G);
- Tenant no longer eligible for affordable housing scheme (s 87H);
- Tenant no longer eligible for transitional housing program (s 87I);
- Premises required for key worker accommodation (s 87J);
- Tenant no longer eligible for student accommodation (s 87K);
- Premises no longer to be used as rented residential premises (s 87L);
- Landlord or family will reside at the premises (s 87M); and
- Employee and caretake residential tenancy agreements (s 87N).
Section 6: Tenants have the option to pay rent in a free and convenient way
An imperative consideration under the Bill is ensuring that tenants must no longer engage with third party entities that facilitate payment of rent, and subsequently incur unnecessary fees in order to pay rent to landlords. Under section 6 of the Bill, landlords must ensure tenants are provided with free and convenient options to pay rent.
Two prescribed ways to pay rent have been outlined in the Bill. These are the Commonwealth operated system, Centre pay, or an approved electronic bank transfer method.
Key takeaways
- The Residential Tenancies Amendment Bill 2024 amends the Residential Tenancies Act 2010;
- The Bill provides further protection of tenants’ rights and establishes clearer obligations on landlords to ensure they act reasonably and lawfully; and
- The Bill hasn’t been made effective in full as of today’s date however, landlords and tenants should be aware of how these amendments may impact them.
For more information on how these changes may impact you, please contact Coleman Greig’s Litigation and Dispute Resolution team.
Useful resources
REIWA Residential Tenancies Amendment Act 2024
Tenants’ Union of New South Wales: Tenancy laws are changing in NSW
Realestate.com.au: Huge win for renters: NSW tenants bill passes parliament
