Pets and fee-free rents in tenancy law reforms

The NSW government is to introduce a suite of measures to make life better for tenants, who comprise more than half of the residents of strata in the state, including making it easier to rent with pets and fee-free rents in tenancy law reforms.

Legislation to be introduced into the Parliament next month (October), will make it harder for landlords to refuse pets and will require them to offer a payment option that doesn’t incur transaction fees.

The new laws will also include previously announced measures, including ending no grounds evictions – property owners will now need a reason to end a tenancy for both periodic and fixed term leases – and renters will no longer be being charged for background checks when they’re applying for a property.

Meanwhile, NSW has introduced an online resource, RentCheck, that will make it easier for tenants to discover if the rent they are paying is fair or if a proposed rent rise is excessive.

It will also help investors to assess the rents they can reasonably expect for their properties, say Government sources.

Announcing the proposed law changes, the Government said it made an election commitment to improve rental laws and strike the right balance between the interests of owners and renters. Around one third of the NSW population lives in rentals and half of those living in strata are tenants.

Responding to reports of tenants being given limited options to pay their rent without incurring additional fees and charges,  the new regulations will require owners and agents to offer fee-free ways to pay, such as bank transfer and the Commonwealth Government’s Centrepay.

“It is not fair that renters are being charged additional fees simply to pay their rent, especially amid current cost-of-living pressures,” says a press release.

The proposed reforms will also make it easier to have pets in rentals. According to the RSPCA, one in five animals they receive in NSW has been surrendered due concerns about rental applications.

Domestic violence organisations have also reported that a major barrier for victim-survivors getting out of dangerous homes is their concern about securing housing with their pet.

While renters will still need to apply to have pet in their homes, the changes will make it much easier, and bring NSW into line with most other states.

Owners will no longer be able to refuse pets without any reason, but they will still be able to decline in certain situations, such as where having the pet would break another law (e.g. local government regulations), or if the owner lives in the property and does not want to live with the animal.

This includes the free, online Rent Check tool (see below), and an $8.4 million investment to establish a Rental Taskforce within NSW Fair Trading, with investigators and inspectors to act on serious breaches of rental laws.

“We were elected with a mandate to modernise the rental market, and that’s what this bill will do,”Premier Chris Minns said. “You don’t pay additional fees every time the mortgage comes out, and you shouldn’t have to pay to pay the rent.

“We are building a fairer rental market for both tenants and owners. We believe this bill make things a bit less stressful for renters, while getting the balance right.”

“We know that renters have been calling out for change so we’ve developed a broad package that will make renting fairer and increase clarity for property owners,” Minister for Better Regulation and Fair Trading Anoulack Chanthivong said.

“There are 2.2 million renters across the state and we’re getting on with the job to create a more modern rental market that works for property owners and renters alike.”

Minister for Housing and Homelessness Rose Jackson said that providing more options and greater certainty in tenancies would help reduce the stress many are facing in today’s rental market.

“We want to ensure sure that the growing number of renters in our state have the stability and transparency they deserve.”

Rent Check

Developed by the NSW Rental Commissioner, Rent Check, will provide updated, current data on rent prices to both renters and owners for comparable properties in their suburbs. 

While some online real estate apps and websites are available to paint a picture of the rental market, they rely on advertised rent prices, says the government. Rent Check uses the latest bond data to provide a more accurate and comprehensive breakdown of market prices.

An accurate measure of other rents in an area is critical for tenants who challenge  rent increases as being excessive

“Rent Check compares up-to-date weekly rents by NSW postcode across metropolitan and regional locations using rental bond data, ensuring the tool provides a realistic indication of rent prices,” says a Rental Commission press release.

Users enter a postcode and answer questions about whether the home is a unit or house, how many bedrooms it has and the current rent, or price they are willing to pay for a property.

The result will give them the median market rental range for a particular location and if the price is above or below the median price for that suburb.

The new website will help renters compare pricing and identify excessive rent while also helping owners better understand the range of rent being charged for similar properties in an area.

The free-to-use tool complements the NSW Government’s commitments to modernising the state’s rental market and making it fairer, including by ending no-grounds evictions.

The website will also provide links to further advice and resources for renters, owners and other users on the NSW Fair Trading website. Rent Check is available at www.nsw.gov.au/rent-check

“We’re getting on with building a more modern and transparent rental market in NSW,”Minister Chanthivong said. “One in three people in NSW are renters and many spend a large chunk of their weekly budget to pay for the roof over their head.

“Rent Check offers renters the only option to compare rent based on bond data rather than advertised rents and understand if it is in market range. For future renters, it may help them find a location suited to their budget.

“It also empowers owners to understand the market rent for similar properties to make the best decision for their investment.

Rental Commissioner Trina Jones said that Rent Check provides benefits for both owners and renters.

“With transparent market information, renters are empowered to make informed decisions and negotiate better rental agreements while owners can use it to set competitive and fair rent prices by understanding market trends, ensuring they attract and retain tenants.”

The Rent Check portal also offers links to websites offering advice and support;

“NSW Fair Trading offers a range of resources for tenants and landlords, as well as guidelines about paying rent and rent increases,” it says.

“However, if you feel that your current rent is excessive, you can apply to NSW Civil and Administrative Tribunal (NCAT) for a ruling to determine if your rent should be lower. Learn more about how to apply to NCAT and how decisions are made.”