New laws make it harder to say no to your tenant’s pooch. Photo: StudioVK.
Recent changes to NSW rental laws have landlords on edge, as amendments to the Residential Tenancies Act 2024 spark confusion over their rights and responsibilities.
“No grounds” evictions are unlawful, and pets easier for renters to have, under the act’s sweeping changes that came into effect in May.
The changes represent a significant improvement for NSW renters, but some landlords remain unsure how and when the laws apply.
“Some of the language in the legislation can be a bit confusing, and can leave agents in a difficult position when communicating this to their clients,” John Mooney Real Estate director Jacinta Kelly says.
“Many landlords, for instance, are not sure if the no-grounds termination clause applies to their property. It applies to all properties, no exceptions.”
Before the changes, landlords could simply give tenants 90 days’ notice to vacate without providing a reason. Now, they must choose from a fixed list of approved grounds, disclose the reason to the tenant, and supply supporting evidence.
Acceptable reasons include the landlord moving in, major renovations that make the property uninhabitable, the home being listed for sale or marked for demolition, or a serious breach of the lease, such as failure to pay rent.
“The change is a measure to give tenants more security in response to the housing crisis,” Jacinta says.
Evidence can include written statements from landlords when renovating, or agency agreements or copies of the contract of sale to sell a home.
“Normally I would create the agency agreement when the owner is ready to sell,” Jacinta says. ”But because the landlord is required to provide 90 days’ notice to vacate, accompanied by evidence, I would need to create that document some three months before. That’s adding to the confusion.”
The John Mooney Real Estate team works closely with clients to secure rental agreements that yield the best chance of a happy long-term tenancy for both parties. Photo: John Mooney.
The changes have also capped rent increases to once yearly for most agreements, banned fees for background checks and, significantly, prohibit landlords from refusing pets except under certain circumstances.
Under the new law, tenants can apply for consent to keep up to four pets. If a landlord fails to respond within 21 days, the request is automatically approved. Landlords can only refuse on specific grounds, such as inadequate fencing or open space, the animal cannot be kept humanely on the property, or it is highly likely the animal will cause damage exceeding the bond.
Landlords may ask tenants to agree to certain conditions for keeping animals; however, there are limits. A landlord cannot, for example, increase the bond or rental price as a condition for allowing pets.
Interestingly, strata bylaws that ban all pets are not valid and cannot be used as a reason to refuse a pet.
Jacinta says it is now more important than ever that landlords have a managing agent who will work closely with them to secure good tenants.
She also urges landlords to trust their agents to interpret the laws.
“We know what’s going on and at the end of the day, we’re working for you,” she says. “We want to secure agreements that ensure both you and your tenant start from a place that will hopefully lead both parties to a happy, harmonious, long-term tenancy for all.”
For more information, contact John Mooney Real Estate.
