Rental bond transfers and tighter eviction laws promised by NSW Labor

By ERIN MODARO

NSW Labor is pledging to tighten evictions laws and allow renters to transfer rental bonds from one property to another, if they come to power in 2023. As about 1/3 of Sydney residents rent, the proposal aims to reduce some pressure felt by the recent rental crisis and cost of living crisis.

2021 census data revealed that Australians spending more than 30% of income on rent has increased to over 335,000 people.

Under the proposal, no grounds evictions, where tenants can be evicted from properties by landlords for no reason, would be banned “in effect” through tighter regulations. This means landlords would need to prove reasonable grounds to evict tenants. Labor says that property owners will retain the right to evict over illegal activity and property damage.

“This is a sensible cost of living measure to help ease the pressure on the over 30 per cent of people in New South Wales currently renting” NSW Labor leader Chris Minns said.

The idea to remove no grounds evictions from NSW law is being pushed from multiple sides. In October, The Greens proposed a bill to NSW Parliament that would ban no ground evictions.

Greens MP Jenny Leong called the bill an “immediate fix” to support renters who are struggling financially.

“More people are renting now than ever before, many of them likely to be lifelong renters. The rental crisis isn’t going to get better without urgent and immediate action from the government” Leong said.

“Many NSW renters don’t know where they will be living from year to year or in some cases from month to month.”

This weekend NSW Labor re-announced their commitment to ending no grounds evictions – sure this is welcome – but it’s what they already committed to last election – and it’s what the Greens and the Make Renting Fair campaign have been pushing for years #nswpol

— Jenny Leong MP 梁珍妮 (@jennyleong) November 7, 2022

Transferable rental bonds

The Labor proposal would also allow tenants to transfer an existing bond to a new property, allowing renters to forgo getting together an additional sum of thousands of dollars for a new rental property.

The NSW Rental Board would allow the previously received bond to be transferred to a new landlord, who will receive a certificate from the board.

“Anyone who rents in Sydney knows just how anxious and challenging a process it can be to find suitable accommodation, never mind the significant costs associated with moving” Minns said.

Currently, average costs associated with eviction or moving property amount to $4000.

Courtney Houssos, NSW Shadow Minister for Better Regulation and Innovation said that “moving house is considered one of life’s most stressful events”.

“Introducing reasons for eviction will update and modernise New South Wales’ rental laws and bring us in line with most other states.”