Notice Periods to End a Residential Tenancy Agreement in NSW
As a landlord in New South Wales, understanding the legal requirements for ending a residential tenancy and making informed decisions about lease renewals is crucial. This blog post explores the notice periods required for terminating a lease in NSW and discusses whether lease renewals are beneficial for landlords.
Recently, Premier Minns released a statement about making renting fairer in NSW. To me, fairness means equality. When I hear ‘fairness regarding notice periods for ending a lease,’ I imagine it means that the same notice period applies to both tenants and landlords. However, the current NSW government has a different perspective.
Read the NSW Government Press Release on this link: Making Renting Fairer in NSW
This blog aims to explain the notice periods required for both tenants and landlords, helping landlords make strategic decisions for the smooth management of their rental properties.
Understanding the Current Notice Periods in NSW
In NSW, the notice period required to end a residential tenancy depends on the reason for termination and the type of lease agreement. Here are the key notice periods you need to be aware of:
- Termination by Tenant:
- Fixed-term lease: Tenant must give at least 14 days’ notice before the end of the fixed term.
- Periodic lease: Tenant must give at least 21 days’ notice.
- Termination by Landlord:
- Fixed-term lease: Landlord must give at least 30 days’ notice before the end of the fixed term if they do not wish to renew the lease.
- Periodic lease: Landlord must give at least 90 days’ notice without specifying a reason.
- For specific reasons (such as breach of agreement, sale of the property, or landlord/family moving in), the notice periods vary. For example, if the landlord or their family member is moving into the property, the landlord must give at least 30 days’ notice. Note that the landlord cannot break a fixed-term agreement.
Summary of Proposed Changes to Notice Periods for Ending a Residential Tenancy in NSW
The Minns Labor Government has proposed significant reforms to improve rental laws in NSW, aimed at ending no-grounds evictions and providing more stability and security for tenants. Below is a summary of the proposed changes:
- Ending No-Grounds Evictions:
- Current Law: Landlords can terminate periodic leases at any time without providing a reason.
- Proposed Change: Landlords will need a valid reason to terminate both periodic and fixed-term leases.
- Valid Reasons for Termination:
- Breach of lease, property damage, or non-payment of rent.
- Property being sold with vacant possession.
- Significant repairs, renovations, or demolition making the property uninhabitable.
- Property changing its use (e.g., no longer a rental).
- Owner or their family intending to move into the property.
- Tenant no longer eligible for affordable housing or purpose-built student accommodation.
- Notice Period Adjustments:
- Fixed-Term Agreements:
- For agreements of less than 6 months, the notice period will increase from 30 days to 60 days.
- For agreements of more than 6 months, the notice period will increase from 30 days to 90 days.
- Periodic Agreements:
- There will be no change to the existing 90-day notice period for no specified reason.
- Fixed-Term Agreements:
- Evidence and Penalties:
- Landlords must provide evidence for the termination reason when issuing a termination notice.
- Penalties will apply for providing non-genuine reasons for termination.
- Implementation Timeline:
- The reforms are set to begin early next year, following stakeholder engagement and the introduction of legislation in the September sittings of Parliament.
The Minns government claim that these changes aim to balance the rights and responsibilities of both tenants and landlords, but it raises the question: are these reforms truly fair to landlords?
As always if you have any questions regarding your investment property don’t hesitate to reach out to Michelle Bourne on 0400 664 855 or via email on michelle@rightside.io
