The Residential Tenancies Amendment Bill 2024 (the Bill) has recently been introduced into parliament and may severely impact Landlords in NSW. The Bill wants to amend the Residential Tenancies Act 2010 to restrict landlords on the termination of a lease. The changes will place limitations on when a landlord can terminate a lease at the end of a fixed or periodic term.
The main changes to be aware of include:
- The bill removes the right of a landlord to terminate residential tenancy agreements without grounds. A landlord will be permitted to give a termination notice for a fixed term agreement, but it must be on specific grounds.
- A termination notice for a fixed term agreement must specify a termination date that is at least 90 days after the day on which the notice is given.
- Makes it an offence for a landlord to fail to ensure residential premises are used in accordance with the ground on which the termination order was made and the Landlord may be required to pay compensation to the Tenant for wrongful termination.
These amendments will extend to residential tenancy agreements entered into before the commencement of the proposed Act.
The Bill has been referred to Committee for inquiry and a report submitted by 20 September 2024.
It is no secret that NSW’s rental market is one of the toughest in decades. Among the government’s election platforms was a commitment to improve rental laws. This saw the introduction of the Residential Tenancies Amendment (Rental Fairness) Bill 2023 which addressed secret rent bidding and allowed rental bonds to be portable. The next bill we can expect will introduce tougher tenancy guideline and landlords must be aware of their rights and obligations in light of these changes.
If you would like to discuss this matter further, feel free to reach out to our experienced Property Team (jacki.o@morganenglish.com.au) and get on the front foot of these changes.