No Grounds Eviction NSW

No Grounds Eviction NSW – Martin and Grace Version

The NSW Residential Tenancies Act currently allows renters to be evicted at any time without notice. Law reform is urgently needed to provide stable housing to millions of tenants across the state.
Subsequently, the NSW parliament has received a bill proposing to end no grounds evictions in NSW.
Find out more about no grounds evictions, how much notice is required, and the impact on renters and landlords.
Let’s take a closer look.

What Is Eviction?

When a landlord wants a tenant to vacate their rental property, under the residential tenancies act, they are lawfully permitted to ask them to leave, as long as the landlord provides the required notice. Currently, the legislation allows a landlord to have renters evicted without any reason/grounds, which can put tenants in a vulnerable situation of not having stable housing. New law reform in the state may provide stability to about one million renters in NSW.
Due to eviction and increases in rental prices, Sydney renters are being driven to regional NSW, which has caused a rise in rent across the state.
Eviction can occur with or without grounds, which means that the tenant may not have breached the terms of the tenancy agreement, yet still faces the risk of being evicted.

Termination Notice

When a landlord wishes to end a rental agreement, they can issue a termination notice which notifies the existing tenant that they must leave by a specified date.
The correct procedures must be followed when serving the notice, or it may become invalid.

The termination notice must be;

In writing
Signed and dated
Include the address of the rental premises
State the termination date
Include reasons – if applicable

(A landlord is permitted to serve a no grounds notice which means that they do not need to specify the reason for the termination of the lease. )

How Much Notice Must A Landlord Provide?

Minimum notice periods vary depending on the rental agreement type and grounds for lease termination. The types of tenancies are either a fixed term agreement or periodic agreement. With a fixed term lease, the tenant agrees to stay at the rental premises for a specific period, whereas a period lease has no defined fixed term.

When there has been a severe breach of the agreement, such as damage to the property or refusal to pay rent, a landlord can issue a termination notice and request that the tenant vacates the premises within 14 days, regardless of the type of rental agreement.

If a landlord wishes to sell the rental premises, they are only required to provide 30 days notice to a tenant on a periodic agreement. But for fixed term agreements, the landlord must wait until the end of their fixed term.

The no grounds evictions clause permits landlords to ask their tenant, on a periodic lease arrangement, to vacate the rental premises within 90 days. They can also provide 30 days notice at the end of the fixed term if they wish to end an agreement.

Grounds For Eviction

There are certain circumstances when a landlord can apply to the tribunal for a termination order and is not required to provide any notice to their tenant.
The following grounds permit a landlord to take immediate possession of the property;

If the tenant has seriously damaged the property or neighbouring properties
The landlord, agent or employee has been seriously injured by the tenant
The property has been used for illegal purposes, such as drug manufacture
The landlord, agent or employee has been threatened or abused by the tenant or another occupant at the premises
If the landlord has suffered extreme hardship

In extreme circumstances, a landlord may request a termination order for immediate vacant possession of the property if they were due to suffer hardship if the tenancy continued. For example, if the landlord’s existing home was destroyed due to fire or flood and they required the property for immediate housing as they had no alternative accommodation. The landlord would be required to compensate renters financially for their loss of the tenancy.

If tenants breach the terms of their agreement, they may receive a termination order, for example, non payment of rent by more than 14 days or damage to the property.
A landlord can also issue a termination notice for the following reasons:

Breach of contract
Non payment of rent
End of the fixed term period
Sale of the property

In these cases, notice is required, which will vary depending on the type of tenancy agreement. For example, If a landlord wishes to sell the rental premises, they are only required to provide 30 days notice to an existing tenant on a periodic agreement.

Is It Legal To Evict A Tenant Without A Reason In NSW?

Currently, in NSW, a landlord is permitted to evict a tenant at the end of a fixed term agreement and by providing 90 days notice on a periodical lease without valid grounds. Many NSW renters have been forced to leave their homes without being given a reason, even when they have paid rent on time and been a model tenant.
With such a shortage of rental housing currently available in NSW, some landlords have been abusing the situation. Skyrocketing rental prices and limited availability have enabled landlords to increase rental prices and evict good tenants to obtain more rent. Tenants have been reluctant to negotiate basic repairs for fear of being asked to move out.
With the current escalation to basic living costs, such as increased fuel, electricity and grocery bills, and massive increases in rental prices, tenants have been feeling the pressure.
Consequently, in Oct 2022, the NSW Greens party introduced a bill to parliament that could end “no grounds” evictions to help provide some security and ease the pressure for rental tenants in New South Wales. The bill also will compensate tenants who have been wrongfully evicted.
The NSW Tenants Union chief executive officer says that the no grounds eviction clause undermines a tenant’s ability to maintain a stable home.
Australia is one of the few OECD countries that still allow no ground evictions, which provides an opportunity for unscrupulous landlords to monopolise the market.
Debates continue in parliament to end no grounds evictions to help provide a stable home environment to tenants across the state. The NSW government is currently reviewing the Residential Tenancies Act.

How Will The Legislation Change Affect Landlords?

If no grounds evictions were scrapped in NSW, the landlord would still be permitted to legally evict a tenant if they breached the conditions of their tenancy agreement. Any wrongdoing, such as property damage or non payment of rent, would still warrant a termination notice.

Ending A Tenancy

In certain circumstances, a tenant may need to end their fixed term agreement immediately. They may not incur any fees if the tribunal is provided evidence and proof that there are substantial grounds for terminating the agreement early.
Reasons may include:

If the tenant is experiencing hardship, such as loss of employment or serious medical issues
If the tenant or their dependent children are victims of domestic violence

If a tenant wishes to vacate the premises before the end of the agreement’s fixed term, there may be a penalty, depending on the time left on the lease.

Summary

Currently, the legislation allows a landlord to have renters evicted without any reason/grounds, which can put tenants in a vulnerable situation of not having stable housing. The NSW parliament has received a bill proposing to end no grounds evictions, which can help provide some security and ease the pressure for rental tenants in New South Wales. Reform to the existing legislation may potentially provide stable housing to about one million people in NSW.
Eviction can occur with or without grounds, which means that the tenant may not have breached the terms of the tenancy agreement, yet still faces the risk of being evicted.
When a landlord wishes to end a residential tenancy agreement, they can issue a termination notice which notifies the existing tenant that they must leave by a specified date.
Minimum notice periods vary depending on the tenancy agreement type and grounds for lease termination.
In extreme circumstances, a landlord may request a termination order for immediate vacant possession of the property, such as; being personally abused, injured or threatened by the tenant, and if the property has been seriously damaged.
If no grounds evictions were scrapped in NSW, the landlord would still be permitted to legally evict a tenant if they breached the conditions of their tenancy agreement.
Debates continue in parliament to end no grounds evictions to help provide a stable home environment to tenants across the state.

FAQs

Can You Be Evicted For No Reason In NSW?

On What Grounds Can You Be Evicted?

If you breach the terms of your rental agreement, you risk being evicted, for example, non payment of rent by more than 14 days or damage to the property.
If a landlord wishes to sell the rental premises, they are only required to provide 30 days notice to an existing tenant on a periodic agreement.

The following grounds permit a landlord to take immediate possession of the property;

Severe damage to the property
Abusive or threatening behaviour
Using the property for illegal dealings such as drug manufacture
Seriously injuring the landlord
The landlord needs to property as they are experiencing undue hardship