It’s one of the measures to help ease the pain for renters, which will include Portable Rental Bonds Scheme, allowing them to digitally transfer their existing bond to their new rental home.
With more people renting than ever before – around 33 per cent of the NSW population renting, an increase of 17.6 per cent since 2016 – the rental market in NSW is the toughest it has been for decades with historically low vacancy rates, and median rent prices increasing by around seven per cent over the last 12 months.
Under the existing law, the owner of a rental property can choose to end a residential periodic lease at any time for any reason or no reason at all, creating insecurity and financial pressure for renters whose lives can be upended at any time.
However, the under the proposed reforms, they will now need a reason to end a tenancy for both periodic and fixed term leases.
And when renters do have to move, they will be able to transfer their bond with them under the nation’s first Portable Rental Bonds Scheme.
There is a turnover of more than 330,000 tenancies every year across the state, with the average tenancy 1.6 years.
With residents juggling high rents, low vacancy rates and general cost-of-living pressures, they’re also faced with an average moving cost of $4,000 and the prospect of having to pay a new bond before their old one is returned.
The Portable Rental Bonds Scheme will be a financial relief measure which makes it easier for them when moving by allowing eligible tenants to digitally transfer their existing bond to their new rental home.
New laws bring relief for renters
RENTERS have been given some relief with the State Government announcing new laws to end no-grounds evictions.