The NSW Parliament is currently considering a contentious Bill that would prohibit no-grounds evictions for tenants of rental properties. The RMB Lawyers Property Law Division explores both sides of the argument.
In February this year MP Jenny Leong introduced to the NSW Legislative Assembly the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024.
This bill aimed to amend the Residential Tenancies Act 2010 to prohibit no-grounds terminations of residential tenancy agreements. The bill was later referred to for a second reading in May, when it was debated and agreed upon to be referred to a committee for further inquiry and report by 20 September 2024.
The Bill will be decided after the committee’s report and further discussions in the Legislative Assembly. If successful, it is proposed to be passed on 25 October 2024.
So, should this new Bill be passed, and why should we care?
NSW is the largest rental market in Australia, with over 32.6 per cent of households being occupied private rental dwellings as well as 4.6 per cent being social housing. This means about two million people live in rental homes across the state.
As such, the Bill could shift the balance of power from landlords to tenants.
Proponents of the bill argue that banning no-grounds evictions would provide greater security and overall stability for tenants who hold up their end of the tenancy.
Supporters also believe that banning no-grounds evictions would incentivise tenants to more often report maintenance or property issues, thus asserting their rights without the fear of eviction.
The ACT removed an equivalent ‘no cause’ eviction tenancy law in 2023, while Queensland and Victoria have also either restricted or eliminated ‘no grounds’ evictions.
However, opponents to the bill contend that landlords and property owners as a whole should have the right to make decisions about what they do with their property once a rental agreement ends, provided they give adequate notice and abide by any other legal obligations they have made with the tenant.
As such, they believe banning no ground evictions would interfere with freedom of contract. Further, opponents say the Act already has implemented prohibitions on landlords from engaging in retaliatory evictions, which grant tenants protections if they assert their rights.
Lastly, property owners say that banning no grounds evictions will discourage property investment which will directly reduce supply of rental properties. The current bill continues to remain a contentious topic for NSW landlord and tenants alike.
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