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Blue Mountains State MP Trish Doyle says a NSW Labor government will deliver fairer rental rules by reducing the upfront moving costs for renters.
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The idea is being proposed at a time of record rent increases and severe cost of living pressures.
The opposition has vowed to allow renters to directly transfer bonds from one property to another, saving them from paying "double bond". The changes would provide greater clarity on the circumstances when a lease can end, she said.
"I've received several reports from constituents who have been forced to move because their lease was terminated with a no-grounds eviction," Ms Doyle said.
"Labor's policy will provide greater protection for Blue Mountains renters."
Portable bonds
The opposition will streamline the rental bond process to allow renters to directly transfer bonds from one property to another, while ensuring owners still have access to funds they may need.
Currently, many renters must find thousands of dollars for a bond for a new property before their existing bond has been refunded. This leaves renters out of pocket up to several thousand dollars, for up to several weeks. It places many renters in financial stress and forces some to take out personal loans, she said.
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The NSW Tenants Union estimates the basic costs of moving is about $4,000, without taking into account renters being out of pocket for weeks while they wait for their bond to be refunded.
Recent data showed one in three people would need to go into debt to cover an unexpected $600 payment, and one in 10 simply couldn't cover it.
The NSW Rental Bond Board will still hold bonds on trust. But it will allow those bonds to be held on trust for the new property, while also ensuring the board can collect against it on behalf of owners for outstanding debt accrued by renters for property damage.
I've received several reports from constituents who have been forced to move because their lease was terminated with a no-grounds eviction. Labor's policy will provide greater protection for Blue Mountains renters
- Trish Doyle MP
As a result, no owners will be left out of pocket from these changes, Ms Doyle said.
The government has previously tried and failed to implement similar provisions, she said. Despite legislation introduced in 2018, many renters still don't have access to portable bonds.
Reasonable grounds
Ms Doyle said Labor will clearly outline the grounds on which a lease may be terminated and in effect bring an end to no-ground evictions.
And the opposition would work closely with stakeholder and advocacy groups to develop a list of reasonable grounds for an owner to end a tenancy, including minimum notice to vacate a property.
Owners would retain common sense rights to evict those breaking the law, damaging property or not paying rent.
Reasonable grounds for eviction are already in place in Victoria, Queensland, Tasmania and the ACT - and these changes would modernise the NSW rental laws.
Ms Doyle said Labor's policy was a different approach to the Greens' Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2022.
She said that bill lists several reasonable grounds for eviction, but then defers additional grounds to be made by the minister through regulation. The Greens' bill was also retrospective, and applied immediate and large penalties to owners without a transition period.
Renting in New South Wales
Median rent in the state has increase almost 10 per cent between 2016 and 2021 - from $386 to $420.
More than 35 per cent of tenanted households in NSW were in rental stress. (They had rent payments greater than 30 per cent of household income)
Ms Doyle said this is a sensible cost of living measure to help ease the pressure on the more than 30 per cent of people currently renting in this state.
"Anyone who rents knows just how anxious and challenging a process it can be to find a place to rent, never mind the significant costs.
"Labor's changes will give renters and owners more certainty, allowing renters to build a home while also protecting owners," she said.
"Introducing reasons for eviction will update and modernise New South Wales' rental laws and bring us in line with most other states."
The Sydney Morning Herald reported the peak body representing landlords in the state only supported portable bonds when endorsed by the tenant's previous landlord.
Debra Beck-Mewing, a committee member of the Property Owners Association of NSW said the organisation did not believe a change to eviction rules was needed as, although the Residential Tenancies Act allows for no-grounds terminations of tenancy, there were provisions in place, such as notice periods, to ensure this was not unreasonable.
"It can't just be because they've lost their temper, and no landlord wants to go through the lengthy process of eviction without a reasonable reason to do so," she said.