Owners of investment properties are waiting to see what the practical impact of new rental reforms introduced by the state government will mean in practice.

The new laws for rentals were passed in NSW Parliament early this year, and as they are rolled out the state's 2.2 million renters will see the following changes: 

• No grounds evictions will be banned. 
• Rent increases will be limited to only one per year. 
• It will be easier to have pets in rentals.  
• Fee-free ways to pay rent; and 
• A ban on paying for background checks when applying for a property. 

While this will see a positive outcome for many, some rental property owners are concerned, especially when it comes to pets in their rentals. 

“Renting and being a landlord can sometimes be a hard game,” said one western plains landlord. 

“A lot of landlords in rural areas are locals who have worked hard to get a second house as an investment for their kids for the future," she said.

“We want the best possible tenants who will care for our house like we would, but pets can destroy homes and honestly, we can’t afford to keep doing repairs that these pets cause.

“It can make landlords seem a bit heartless, but we are definitely not we just want the best outcome for all parties,” she added. 

The changes to pet access in rentals will mean a tenant can apply to keep a pet, with landlords only allowed to decline according to set rules. 

A local Real Estate agent who did not wish to be named said they were aware of changes but hadn’t been fully informed as yet, adding that no one in their area had paid for background checks previously nor been charged in any way to pay actual rent and was unaware of any agent who would have been doing that. 

In terms of no ground’s evictions, property owners will have a clearer idea on when they can end a fixed term or periodic lease, while renters will have a more secure outlook. 

Rental increases will be limited to once a year to protect renters against multiple rent jumps. 

With the use of bank transfer and Commonwealth Centre Pay, property owners and agents are required to allow tenants zero-fee ways to pay rent, a welcome initiative. 

While the pets in rentals and no grounds evictions laws will not come into effect until early 2025, the limiting rent rises and not having to pay for background checks will take effect immediately. 

Ray White Richardson and Sinclair’s Bridgette Caton of Warren - Image Ray White

According to Ray White Richardson and Sinclair’s Bridgette Caton of Warren, it is always good to work on ways to improve the system for both landlords and renters. 

"As the biggest real estate group in Australia we are always welcoming ways to improve the renting experience for our tenants and landlords and especially measures to address the housing pressures. 

"The new legislation will bring some changes around the termination of tenancies, notice periods and keeping pets in the home, our focus is to prepare and educate our clients, so they are aware of their rights and responsibilities," said Ms Caton. 

A number of community members have commented that most of the issues being addressed by the new laws have been based more on negative experiences of city renters as opposed to those in the country.