In the face of the cost of living crisis, the NSW Labor government has taken steps to empower renters and combat the tight rental market.
The recently passed rental reform bill, including provisions for bond transfers, is the first phase of a comprehensive plan to provide renters with better rights and financial relief.
Let’s delve into the bill that aims to reshape the rental landscape in NSW.
Closing the rent bidding loopholes
The reform tackles solicited rent bidding by including owners and third parties, ensuring transparency. Owners and agents must now inform applicants of higher offers from other prospective tenants, levelling the playing field.
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A new scheme for bond transfers: Bye-bye moving hassles
Say goodbye to the heavy financial burden of moving home. The new portable bond scheme allows tenants to transfer their existing bond from one rental property to another.
Under the current system, a renter who pays $550 per week would need to pay a bond cost of $2,200 if they wish to move. However, with the implementation of a portable bonds scheme, the average renter will no longer be burdened with spending the equivalent of 11 weeks’ worth of groceries to move from one home to another.
Under the new bond scheme, you will receive a refund of your previous bond when you move to a new place and only need to pay a new bond to secure the new rental. This allows for bond transfers from rental to rental every time you move.
This new bond scheme will provide flexibility and cost-saving options during relocations.
Commitment to future reforms
Fair Trading Minister Anoulack Chanthivong says these reforms are the first step, not the last. Chanthivong said the government is actively working on more changes to bring further relief to renters.
Pet-friendly rentals and an end to no-grounds evictions are on the horizon.
Addressing housing supply issues
The NSW government has also begun to audit surplus public land for housing development, committing to increasing housing options and easing the rental market strain.
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