NSW landlords will no longer be able to remove tenants without a suitable reason as part of new state laws to end no-grounds evictions.
Currently, NSW renters can be asked to leave their property at any time during a residential periodic lease and without reason.
However, the proposed rule change would protect tenants on both periodic and fixed-term agreements from being evicted unless there was a “common sense reason” to end the tenancy.
Acceptable eviction reasons will be limited to either the tenant being in breach of the rental agreement or significant changes to the property’s structure or future use.
Additional changes include the need to give fixed-term tenants more notice should they be required to leave at the end of their rental agreement –60 days for leases six months or less and 90 days for leases longer than six months.
The legislation will also allow for RTA-lodged bonds to be transferred between rental properties without the need for a refund and re-lodgement first.
The rule change will come into effect in early 2025 as the state follows suit with Victoria, South Australia and the ACT in offering more protection in favour of the state’s growing number of renters.
In fact, more NSW residents are now renting than ever before, with the ongoing housing crisis forcing one in three people onto the rental market.
Record-low rental vacancy rates have hovered around one per cent for more than a year, making it even harder to land a rental property, while weekly rents have spiked by eight per cent over the last 12 months.
Premier Chris Minns says the changes will reduce the stress associated with renting.
“Anyone who rents in NSW knows just how anxious and challenging renting can be at the moment. We’ve all seen the lines on a Saturday morning with hundreds of people waiting to inspect new properties.”
“Bad tenants will still be able to be evicted. We don’t want homeowners to have to put up with bad behaviour,” he said.
The NSW Council of Social Service (NCOSS) director of policy and advocacy, Ben McAlpine, told Build-it that banning no-grounds evictions would quell renters’ biggest concern – being left without a roof over their heads.
“Right now, any renter’s life can be upended at any time according to our existing laws, and that’s clearly unacceptable,” he explained.
“Renters shouldn’t have to live in constant fear and anxiety about when their entire lives will be turned upside down.
“The uncertainty of whether you’ll have a place to live tomorrow affects every aspect of your life, such as where you get to work and the decision to start a family.”
Mr McApline also praised the introduction of the state’s portable rental bond scheme, which would allow renters to move their bond between properties without having to wait for a refund and re-lodgement.
“One of the barriers that renters face when moving is having is covering the bond – saving for a new bond before the old one has been refunded,” Mr McAlpine said.
“Recent Finder research indicated almost half of Australians have less than $1,000 in savings, which is well under the average moving cost of $4,000 according to the NSW Government.”
“And NCOSS’ own cost of living research showed that two-thirds of low-income households have no savings at all.”
“This investment and timeframe to cover the bond gap is very welcome.”
Acceptable reasons to evict in NSW as of 2025:
- Tenants breach the lease conditions.
- Tenants damage the property.
- Tenants failing to pay rent.
- The owner intends to move into the property.
- The owner wants to make significant renovations/ repairs.
- The property is no longer being used as a rental home.
- The property is being demolished.
- The property is sold or offered for sale with vacant possession.
Rule change protects renters
Homelessness NSW chief executive Dominique Rowe says ending no-grounds evictions would help those renters across the state who fear they would struggle to get a new lease quickly and possibly end up homeless.
“Stopping no-grounds evictions is a sensible move that will help prevent tenants who have done nothing wrong from being at risk of suddenly losing their housing and facing homelessness,” Ms Rowe said.
Unions NSW boss Mark Morey described the change as a significant coup for renters across the state.
“This is a significant win for renters across NSW. It will provide much-needed security and peace of mind for thousands of families and individuals who rent.”
However, not everyone is backing the changes, with some homeowners telling Build-it that a lack of clarity around acceptable eviction reasons meant the associated stresses were just being from renter to landlord.
“The announcement says nothing about repeatedly paying rent late or missing payments for a temporary period,” landlord Eden Van Der Staam told Build-it.
“Current regulations make it really difficult to evict tenants as it is –if they outright refuse to leave.”
“There are so many hoops to jump through, and it can take months upon months; this is simply another regulatory barrier.”
“It feels like the government is always transitioning more power to tenants who bear none of the financial risk associated with the arrangement; before long, the risks will begin to outweigh the benefits.”
Real estate data analysts PropTrack’s director of economic research Cameron Kusher says that while landlords will likely find the changes concerning, the reforms were unlikely to prevent homeowners from evicting a tenant if they needed to.
“There’s always a reason why a landlord may want to remove a tenant… they’re just going to have to divulge that reason now,” Mr Kusher said.
