NSW Landlords Need No Grounds - Eviction Notices to Remain Put

NSW Landlords Need No Grounds - Eviction Notices to Remain Put

Weekly rents go up as well as down, repairs and maintenance requests keep coming and the cost of keeping an investment property keeps rising. Landlords as well as tenants have real fears too. One of them is if they will still be able to own their rental property next year.   

For a growing number of ordinary mum and dad landlords this is just how life is. More rental properties are coming into the housing market easing rent values, property taxes increase, council rates are on the rise as well as overall holding costs due to mortgage rate increases recently passed by the banks. Add to that refinancing challenges thanks to tightening of APRA regulations and you can now see why landlords are having a hard time. NSW property investors are battling the worst rental returns seen in the last decade.

As prices in traditionally affordable suburbs are increasing less and less mum and dads are able to fund a rental property. Families that bring home a half-decent salary can no longer service a mortgage on a rental property even if they sacrifice some equity in their own home. Most are struggling to meet their own mortgage repayments and house maintenance.

With the rapid growth of home ownership in Sydney and across NSW it’s worth a look at our renting laws. For instance, what kind of protection is offered against tenants abandoning a lease or worse still a trashed property or the tenant’s pet who has scratched and eaten away half the fixtures and fittings? The reality is that compensation is not given out very easily by tribunal members nor landlord insurance companies. These dark circumstances can financially cripple the landlord to the point of no return.

In NSW the Residential Tenancy Act 2010 is under its mandatory 5 year review. Most Landlords see the need for change. At the centre of this legislative change is a tug of war over between landlords and tenants over no grounds terminations. Landlords want control over their property not the other way around. After all they are the one's putting up the accommodation in the first place. Surely tenants cannot expect to live in the property they don’t own forever. Landlord’s personal circumstances can change overnight. Be it financial or other and they want control over their rental property.

The Tenants Union of NSW and their supporters the NSW Greens and Labor back renting laws that force rental property ownership to be unviable. It's almost a complete loss of control with the pendulum swinging further away from landlords. Have a look at what's happening to our northern neighbours. "Rent control" is doing a comeback??

When Fair Trading released a report in the middle of last year, it said “the Act’s provisions in relation to no-grounds terminations should remain unchanged”. For tenants and their advocates this hard line was hard to swallow. Understandably so.

Majority of landlords do want long term tenure. But things can change very quickly as they do. The fact remains that there is always a reason when termination occurs. Tenants who sign up to a tenancy should always prepare themselves financially and emotionally for the day their tenancy ends, as that day is inevitable.

If you would like to know more about tenancies and what is the best option for you and your investment property, contact John Gilmovich on 0418 600 806 or [email protected]. You can also contact us via our website at http://www.realpropertymanager.com.au/contact.