Eligible tenants moving from one rental property to another will soon be able to digitally take their bond with them, under a portable rental bonds system being undertaken by the NSW Government.
The move is part of a package of rental law reforms designed to deliver a fairer rental system.
Member for Gosford Liesl Tesch said the state’s first ever portable rental bonds scheme will be a welcome development for NSW’s rental community, which is nearly one in every three members of the NSW population.
“More people are renting than ever before, and the number of people renting is up 17.6 per cent since 2016,” Tesch said.
“Renters are already burdened with the double whammy of increasing rents and low vacancy rates.
“Currently, if they have to move to a new rental, they’re being saddled with the stress of having to pay a new bond before their old one lands back in the bank.
“When the average moving cost is $4,000, that is a lot of money to go missing from the bank account for up to several weeks.
“That can mean a real hit to the hip pocket and a barrier for re-entry into the rental market during a time already hit by cost-of-living pressures.
“The Portable Rental Bonds Scheme, once introduced, will be a real financial relief measure.
“It will make it easier when moving, allowing eligible tenants to digitally transfer their existing bond to their new rental home.”
The NSW Rental Commissioner is leading the development of the scheme, which is presently out to public tender.
Upgrades to the existing rental bonds system are expected to be completed in 2025.
Also included in the upgrades is an end to no-grounds evictions.
“Under the existing law, the owner of a rental property can choose to end a residential periodic lease at any time, for any reason at all,” Tesch said.
“This is changing, with NSW soon to be brought into line with other states including the ACT, South Australia, and Victoria, who have legislated their own model to end no-grounds evictions.
“For too long, NSW renters have faced a harrowing amount of insecurity, making it an uphill battle as far as securing jobs, starting families and putting down community roots is concerned.
“Renters who are doing all the right things shouldn’t be kept in limbo, looking over their shoulders and worrying about whether an eviction notice will land in their letterbox.
“Greater security is what renters deserve, and ending no-grounds evictions is a step towards that.”
Under the NSW Government’s proposed reforms, homeowners will now need a reason to end a tenancy for both periodic and fixed term leases.
If the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
For those on fixed term agreement of less than six months, the termination notice period to tenants will be increased from 30 days to 60 days.
For fixed term agreements of more than six months, the termination notice period will be increased from 60 days to 90 days.
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