The NSW Government has introduced a suite of measures to make renting fairer for more than 40,300 tenants on the Central Coast including a cap on rent increases to one per year.
It is estimated that about 33 per cent of the NSW population rent, an increase of 17.6 per cent since 2016.
Member for Gosford Liesl Tesch says that the current rental market in NSW is the toughest that renters have seen for decades with historically low vacancy rates, median rent prices increasing by about seven per cent over the past 12 months, and a system that leaves them vulnerable to eviction at any time.
She said current protections against multiple rent hikes did not apply to fixed-term leases of less than two years, or when there was a change in the type of lease, such as from periodic to fixed term.
These changes limiting rent rises to one per year would make renting in NSW fairer, simpler and more certain, Tesch said.
The NSW Government rental package includes no-grounds evictions, banning fees for background checks, ensuring tenants have a free way to pay rent, and making it easier for tenants to have pets.
“We’re establishing a set of reasonable grounds to end a lease, giving greater certainty to renters and owners,” Tesch said.
Property owners will now need a reason to end a tenancy for both periodic and fixed term leases.
Renters will no longer be charged for background checks when they’re applying for a rental property.
Property owners and agents will be required to offer free ways to pay, such as bank transfer and the Commonwealth Government’s Centrepay.
Reforms will make it easier to have pets in rentals, by introducing a new fairer and more streamlined application process.
An investment of $6.6M will establish the nation’s first Portable Rental Bonds Scheme which means eligible renters can move homes and digitally transfer their existing bond with them.
Rent Check will be a new, free website renters can use to help check whether the rent they’re being asked to pay is fair.
A Rental Taskforce, within NSW Fair Trading, will be set up at a cost of $8.4M with investigators, inspectors and support teams to help renters and to act on serious breaches of rental laws.
“I know how challenging renting across the Central Coast can be with increased rents and limited supply,” Tesch said.
“I have heard from renters across the Coast, who are calling for change to make renting fair, while also increasing clarity for property owners.
“With over 40,344 renters across the Central Coast, 11,412 renters in the Gosford electorate alone, it is important that we get the balance right as we reform rental laws, shaping a market that delivers the best results for both renters and owners.
“We believe that these reforms get the balance right, ending no-grounds evictions, ending secret charges, and limiting rent increases to once a year.
“These reforms will mean that renters can focus on making homes, free from the anxiety of uncertainty.”