• What are no grounds evictions?

‘No grounds’ evictions allow landlords to evict a tenant at the end of a fixed-term lease, or during an on-going lease, without giving any reason, even when the tenant has paid their rent on time, looked after their rental home and the landlord wants to keep renting it out.

Under our current laws in NSW, a landlord can evict a tenant without grounds with just 30 days’ notice at the end of their fixed-term lease, or with just 90 days’ notice during an on-going lease.

Australian consumer advocacy group CHOICE have noted that Australia is one of the few OECD countries that allow ‘no grounds’ evictions.

• Why do we need to end no grounds evictions?

No grounds evictions provide a loophole for dodgy landlords who want to avoid their responsibilities or put profits ahead of the well-being of their tenants.

Under our current laws, many people who are renting live in constant fear of receiving a no grounds eviction notice if they ask for repairs, try to negotiate a rent increase, or simply because an agent or landlord doesn’t like them.

While tenants have protections under our laws, those protections are undermined while no grounds evictions are allowed, as tenants who try to enforce their rights can then be kicked out for no reason. 

• Shouldn’t landlords get to decide what happens to their properties?

People who own a property and rent it out should be able to end this arrangement when there is a genuine reason – or ‘grounds’ to do so.

Those reasons could include: when the landlord wants the property for themselves or a family member; when substantial repairs or renovations need to happen; when the property has become unsafe. There could be other valid reasons set out in law. In cases of dispute, the Tribunal could assess whether the reason put forward was genuine.

When an owner intends for a property to remain on the rental market, an existing tenant should be allowed to stay in their home, as long as they are taking care of the property and paying their rent on time.

• Shouldn’t landlords get to evict problem tenants?

The Act already includes a number of grounds for evicting a tenant who does the wrong thing, for example, if they don’t pay their rent, if they seriously damage the property, if they use the property for illegal purposes, or if they breach their lease in any way.

These grounds would all remain.

Landlords should not be allowed to evict someone who requests repairs or raises maintenance issues.

• How would you stop landlords from making up a reason to evict their tenants?

Landlords who  give a false reason for ending a tenancy should have to pay a penalty. The penalty could be compensation to the former tenant, to cover the cost of their move. This provides a deterrent to dodgy landlords and an incentive for tenants to expose cases where the landlord has done the wrong thing.

• Why is this happening now?

NSW rental laws are under review. The NSW Government has conducted a statutory review of the Residential Tenancies Act and we expect that the Government will propose changes to the laws in the coming months. They have an opportunity to make this small change, which will improve security for renters all across the state.

• How often do no grounds evictions happen in NSW?

It’s impossible to tell, as no statistics are gathered on this. But in our view one ‘no grounds’ eviction is too many.

We do know that many renters live in fear of no grounds evictions. According to a recent study co-authored by CHOICE, 83% of renters in Australia have no fixed-term lease or are on a lease less than 12 months long, and 62% feel they're not in a position to ask for longer term rental security.

• Who agrees that we should end no grounds evictions?

Many organisations have said that they support ending no grounds evictions in NSW, recognising that they put tenants in a precarious position and can be used to end tenancies for unfair reasons.

You can find a list of organisations that have publicly supported ending the use of no grounds evictions here.

Many organisations have said that they support ending to no grounds evictions in NSW, recognising that they put tenants in a precarious position and can be used to end tenancies for unfair reasons.

You'll find a list of organisations calling for an end to no grounds evictions at the bottom of the page.

Tenants Union of NSW:

"...the law offers no security for tenants in New South Wales, because landlords can end a tenancy without needing to give a reason... Further, these provisions actively undermine a tenants’ ability to enforce any of their existing rights.

Community Legal Centres:

"There is always a reason behind ending a tenancy. The law should allow for good reasons, and prevent tenancies ending for bad reasons like discrimination.

Carers NSW:

"A landlord’s entitlement to terminate without grounds only exacerbates the inherent instability of private rental arrangements.

City Futures Research Centre UNSW:

"...only those landlords who use or threaten no-grounds notices for bad reasons, such as retaliation or discrimination, would be disadvantaged.

Legal Aid NSW:

"...the tenant’s basic need for shelter should take some small precedence over the landlords’ desire to make unencumbered decisions about the disposition of their investment. The Act already regulates the ways in which a landlord can deal with property that is subject to a residential tenancy agreement.

Committee for Sydney:

"International jurisdictions have introduced longer minimum or non-fixed term lease arrangements, coupled with specified grounds for termination which provide more stability and certainty for both tenants and landlords.

Shelter NSW:

"...it is the provisions of the Act that allow for “no grounds” termination with notice by landlords that lead to great insecurity for tenants. 

Older Women's Housing and Homelessness Group:

"As it currently stands, long term leases will not necessarily give tenants greater security of tenure. Indeed, private rental housing is legally insecure because landlords may give termination notices without grounds.

 Social Justice Forum of the Uniting Church:

"Fear of “no cause” evictions under Sections 84 and 85 can lead to major additional stresses on renting families, many of whom are in disadvantaged or vulnerable categories

These organisations all support ending no grounds evictions:

‘No grounds’ evictions allow landlords to kick out a tenant at the end of a lease without giving any reason, even when the tenant has paid their rent on time, looked after their rental home and the landlord wants to keep renting it out.

Under our current laws in NSW, a landlord can evict a tenant without grounds with just 30 days’ notice at the end of their fixed-term lease, or with just 90 days’ notice during an on-going lease.

Rental laws in many other countries don’t allow ‘no grounds’ evictions.

Why do things need to change?

According to a recent survey co-authored by CHOICE, 83% of people renting in Australia have no fixed-term lease or are on a lease less than 12 months long, and 62% feel they're not in a position to ask for longer term rental security.

Many renters don’t know where they will be living from year to year and are living in fear of being thrown out of their homes. The lack of security creates stress – and it’s a particular challenge for families with school-aged children and for retired people. Each time a tenant is forced to move there is a considerable financial and personal cost.

Many of the protections that tenants have under our laws are undermined by ‘no grounds’ evictions.

'No grounds' evictions allow dodgy landlords avoid their responsibilities around maintenance, as they can simply throw out tenants who demand that repairs are done. They also provide a loophole for landlords who want to impose an excessive rent increase (which is not allowed under NSW laws) as they can simply boot out the existing tenants, then set rents at whatever figure they want.

Tenants shouldn’t live in constant fear of receiving a termination notice if they ask for repairs, try to negotiate a rent increase, or simply because an agent or landlord doesn’t like them.

Watch Jenny Leong MP's parliamentary speech on ending ‘no grounds’ evictions

What can we do?

This year the NSW Government has the opportunity to rectify this major issue for renters, with the statutory review of the Residential Tenancies Act that is currently underway.

The terms that allow ‘no grounds’ terminations of a rental lease can be removed and replaced with a list of reasonable grounds that could be used by landlords who require vacant possession of their property.

Landlords should have the right to take control of their property when there is a genuine reason, for example if they or their family want to move in or if major renovations need to be done. But by ending ‘no grounds’ evictions, we remove a loophole that can be used by dodgy landlords to avoid their responsibilities or impose an excessive rent increase.

More reading:

• The Tenants Union on why ‘no grounds’ evictions should end
• SMH Domain highlight rental nightmares and concerns with ‘no grounds’ evictions
• The Advocate highlights tenants living in fear of ‘no grounds’ evictions

One of the biggest issues for renters in New South Wales is a lack of stability. While rental laws in other countries have been set up to provide long term security for tenants, in NSW many renters don't know where they'll be living from year to year.