A suite of reforms described as the most significant in more than a decade, will deliver benefits to 2.2 million people renting their homes, according to the NSW Government.
The changes, which have now passed parliament, include a ban on no grounds evictions, limiting rental increases to one per year and fewer restrictions on keeping pets.
Renters will also be able to pay their rent without incurring fees and will no longer have to pay for background checks when applying to rent a property.
The government says the changes close the loopholes that existed for fixed term leases of less than two years and situations when the type of lease changes.
“The reforms will also give landlords more clarity on when they can end a fixed term or periodic lease based on clear, straightforward reasons,” the government says in a statement.
There were more than 16,000 submissions and survey responses as part of the public consultation process.
Housing Minister Rose Jackson says renters deserve a fair go.
“We know how hard it can be for young people and families who are facing consecutive rent increases, unfair evictions and hidden fees.
“This is a huge win for renters in our state – it was an election commitment and today we are making the system fairer and more compassionate for all,” she says.
But the reforms have faced resistance, including from the Real Estate Institute of NSW (REINSW), which says similar reforms in Victoria and New Zealand, made conditions worse for renters.
In a statement issued last week, REINSW said the changes will only serve to remove more properties from the private rental market.
“The rental market is in crisis and we need solutions, not reforms that we know because of direct and recent experience will make the problem worse,” said REINSW CEO Tim McKibbin.
“To solve the rental crisis we need to increase rental supply. This means new development, eradicating planning delays, and making it attractive to investors to invest in residential property.”