Franzen Tips#1155-NSW Rental Changes
NSW Rental Changes
The NSW government is endeavouring to implement a suite of changes to the NSW rental sector and in the process, finding that being a minority government can be a bit tricky. A month ago, they announced a range of initiatives, however one of their key proposals has had to be dropped in order to get the rest of the legislation through.
It was planned that “rental bidding” would be made illegal, however the way the legislation was drafted meant that while agents would have been banned from asking applicants to offer a rental rate higher than the listed price, they were permitted to accept an unsolicited offer. BUT, agents would also have been required to disclose offers, that were above the listed price, to other prospective tenants which could give them a chance to make higher bids. This proposal was heavily criticised by tenants’ advocates and other groups as it was deemed that it would have created an informal “rental auction”. So, it’s back to the drawing board for that part of the legislation.
One of the key initiatives is that the NSW government has now appointed Trina Jones to be the first NSW Rental Commissioner. She will work with the government to design and implement changes that rebalance the rental market, making it fairer and more modern. The press release from the government said “In her role as NSW Rental Commissioner, Ms Jones will be a voice for renters and work with the government and stakeholders to get moving on the reforms open for consultation now, including:
- making it easier for renters to have pets in their homes
- ending ‘no-grounds’ evictions
- implementing a portable bonds scheme that allows renters to transfer bonds from one property to another
- improving the protection of renters’ information and privacy.
Beyond these proposed changes, the rental commissioner will also be responsible for identifying and investigating other issues that are impacting the NSW rental market.
The commissioner will examine rental affordability and supply, encourage longer term rental agreements, investigate ways to improve energy efficiency for renters, develop educational resources for renters and owners, and monitor current tenancy laws.”
It certainly sounds like a huge job and lets all hope she can make a real difference to a sector in the property market that is really facing its biggest challenges in many decades.