Forcing landlords to explain above-inflation rent increases is among radical changes to the New South Wales (NSW) rental market being floated by the government.
A discussion paper released on Friday proposes measures beyond the Minns government’s promised rental reforms to end no-grounds evictions, allow more pets in rentals and introduce a portal bond scheme.
Among the new ideas to help the state’s two million renters is creating a public database of rent increases, closing a loophole allowing multiple rent hikes a year and forcing landlords to offer tenants a free way to pay electronically.
It comes in the same week the harbour city posted its fastest quarterly and annual rise in rents, pushing the median price for a unit to $670 a week, according to Domain.
The NSW Council for Social Service also estimates one in five renters are living in poverty.
“We’re getting on with our commitment to rebalance the equation, give renters more protections and let them get on with their lives,” Mr. Chanthivong said.
“We want to hear from everyone because renters and owners need each other, and they both need a fair set of rules.”
The minister is expected to discuss the changes under consideration on Friday morning from Edmondson Park in Sydney’s southwest.
Two in five renters in the local area are in rental stress, while the average weekly rent has risen from $460 (US$304) to $572 in the past 18 months.
Cracking down on “excessive” increases could mean the government collects rent increase information and makes it publicly available by requiring landlords or their agents to report rent increases or gathers information voluntarily from landlords and tenants.
Another way to improve rental affordability could be achieved by requiring a landlord to prove that a rent increase was not “excessive” where, for example, a rent increase exceeds inflation across a certain period, the discussion paper says.
Feedback on the Improving NSW Rental Laws Consultation Paper is open until August 11.
The Minns government in June was forced to ditch one of its promised rental reforms—banning secret rent bidding—after landlord and tenant advocates warned it could make market conditions worse.
Laws to allow tenants to transfer bonds from one property to another and a ban on real estate agents and landlords soliciting rent bidding passed the parliament.
The Greens have called for an immediate two-year rent freeze to pause “out of control” rent increases and relieve renters from the stress of worrying about unfair rent hikes.
