24 hours to give your feedback on NSW property laws
If you live in, own or manage a rental property, or are interested in renting rules in NSW, it is vital you give feedback on the NSW Government’s proposed rental laws discussion paper before the consultation closes tomorrow, Friday, 11 August 2023.
Everyone deserves a home, and while, the housing crisis is worsening and must be addressed urgently, if legislation makes it too difficult for rental property owners, they will invest elsewhere and we’ll have even fewer rental properties available for people to rent.
The Real Estate Institute of New South Wales (REINSW), the peak industry body for real estate agents and property professionals in NSW has raised these important points about the proposed changes for you to consider:
1. The NSW Government is currently seeking feedback on proposed changes to the rental laws in NSW which will contribute to the housing crisis, not solve it.
The housing crisis is a supply and demand issue caused by a range of factors. These include investors leaving the market due to tenancy law restrictions, high property costs and rising interest rates. Lending to investors is down, so there are fewer people providing rental properties. Meanwhile migration into and across Australia is increasing, and major natural disasters have forced many people from their homes. Government policy has also encouraged public sector housing tenants to enter the private market. Supply of rental homes is going down yet demand for rental homes is going up.
2. The Government’s proposed reforms to the NSW rental laws, if implemented, will further restrict how landlords can use their asset.
For example, proposals include restricting a landlord’s right to prohibit pets in their rental property, restricting the way in which landlords can terminate leases and introducing portable bonds (which would mean that a bond could be transferred from the previous tenancy to the new tenancy – essentially leaving two landlords with competing financial interests over the one bond).
These measures will not fix the housing crisis problem and will erode landlord’s rights, causing them to invest elsewhere, reducing supply in an already competitive market and making tenants compete for a smaller pool of rental properties.
Read our blog on the rental laws discussion paper here for more details.
3. Other States have introduced measures like those described above and still have rental shortages.
For example, the Victorian Government has abolished the right of a landlord to terminate a lease on no grounds and requires landlords to obtain a Tribunal order before they can refuse a request for a tenant to keep a pet, irrespective of how unsuitable the property might be.
Concurrently, Melbourne experienced the biggest decrease “in total rental supply over the past year” (a 36.5% decrease), saw a year-on-year decline of 16.8% in new rental listings, and its December 2022 vacancy rate was a “historic low”.
4. Changing residential tenancy laws are not effective solutions to the housing crisis.
Rather than focusing on these proposals, Government should focus on addressing housing supply issues as well as supply issues in the development and construction industries and encourage investment, especially institutional investors who have funds to purchase and build apartment blocks specifically for rental accommodation.
If you haven’t done so already, we really urge you to give your feedback now.
This consultation closes tomorrow, Friday, August 11 2023.
Give your feedback here.
Contact your MP and give them your thoughts!
This is your chance to make a difference, and ensure future laws implemented will not adversely affect you as a landlord, and the housing crises doesn’t worsen.
We know you are busy, so the easiest way to let your MP know how you feel is to send a pre-written email to them via the REINSW dedicated campaign page here.
All you have to do is scroll down to the CONTACT YOUR MP TODAY section on the campaign page and then follow the following steps:
- Choose the option for ‘Landlord’ or ‘Real Estate Professional’.
- Enter your postcode.
- Click ‘Send’ and the email will be personalised and sent to your local MP for you.
If you would like to talk about this consultation further, or would like to know how our property management services can make your life easier, we’re always here for an informal chat to answer questions.
Give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office.
For property tips and ideas, check out our Facebook page.
* Cameron Kusher, “PropTrack Rental Report – December 2022 quarter”, realestate.com.au (published & accessed on 19 January 2023