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Termination of Tenants in NSW!

Today’s topic is about clarifying the notice periods, rules and legislation surrounding termination of tenant(s) in NSW. There is often a lot of confusion around this topic, exacerbated by the fact that each State and Territory has its own rules!!!

For those that love reading up law, the rules and stipulation of how, when and the process for a landlord to terminate their tenant(s), can be found in the NSW Residential Tenancy Act 2010 (Div 2 – Clauses 84 to 95). It is worth mentioning, that the Residential Tenancy Act amendments of 2019, left the relevant clauses unchanged, with only the introduction of termination on the grounds of non-payment of water usage charges or charges for the supply of electricity, gas or oil, been added. This is a good thing if you are a landlord.

So without further ado… this is all you need to know – in simple English and with some examples…

1. Termination of Tenant on a Fixed Term Agreement: Tenants on a fixed term agreement, can only be terminated by a landlord, at the end of the fixed period – not during! Minimum notice required is 30 days (from the day after notice is given). Notice must be given BEFORE the end of the fixed term and the termination date can take effect ON or AFTER the date the fixed term ends. Note: Whilst termination by the landlord is not allowed, termination by a tenant on a Fixed Term Agreement is possible at any time by paying the relevant break fee.
 
2. Termination of Tenant on Periodic Agreement: Tenants on a periodic agreement in NSW, can be terminated at any time by giving a minimum of 90 days’ notice. This is known as the “no grounds termination” which is a clause that – unlike other states – remained in NSW after the 2019 amendments! The 90 days start the day after termination has been given. Note: A tenant on periodic lease that has been given 90 days no grounds termination, may vacate the property at any time before the termination date listed on the notice.
 
3. Termination because of Sale of Premises: Tenants on a periodic agreement can be terminated if the property is being sold, but ONLY if the landlord has entered into a contract for the sale of the property, which requires the landlord to give vacant possession of property. Minimum notice required is 30 days (from the day after notice is given). Tenants on a fixed term agreement can be given a notice of termination, but the termination date cannot be before the end of the fixed term period.
 
4. Termination because of breach of agreement by Tenant: If a tenant is found to have breached the terms of their tenancy agreement, they can be terminated with 14 days’ notice. The 14 days start  from the day after the notice was given. This may be where the tenant has damaged the property or when there is evidence that they have an unapproved pet or perhaps when the tenant fails to comply with the property by-laws, all of which are conditions of their continuing tenancy. All of the conditions of the agreement, can be found in the tenancy agreement which the tenant agrees to at the beginning of the tenancy.
 
5. Termination because of non payment of Rent: A tenant who has fallen 14 days behind on their rent, can be terminated for non payment of rent, by been given 14 days’ notice. The 14 days start from the day after the notice has been served. Note: A tribunal will cancel a non payment of Rent termination, if the tenant pays all the rent owing or agrees to enter into a repayment plan whilst they have been served a notice.
 
6. Termination because of non payment of Water Usage (to be introduced on 23rd of March, 2020): A tenant who has not paid their Water Usage within 21 days, can be terminated for non payment of Water Usage, by being given 14 days’ notice. The 14 days start from the day after the notice has been served. This is a new inclusion in the Residential Tenancies Act to be introduced in March 2020, and more clarifications are required, as they are not available at the time of the writing of this post. Note: Tenants have 21 days to pay the Water Usage amount owing from the day they have been served the invoice.
 

7. Termination because of landlord hardship: A tenant can be terminated by order of the NCAT, on the grounds that the landlord is in hardship or will be in hardship if the tenancy isn’t terminated, and there is evidence to support the claim. The tribunal may award compensation to the tenant in this case but the tenant is required to do all they can to minimise the loss for the landlord.

 

8. Last but not least, as well as the above, the NSW Residential Tenancies Act allows for tenants to be terminated for a number of other reasons, by application to the NCAT. In summary, a tenant can be terminated, if they or an occupant on their property, is found to:-
 
  • have intentionally, recklessly – or by permitting someone else to have – caused serious damage to the property or a neighbouring property (including common property). Any serious damage to the property whether intended or not, falls in this category. For example, a tenant who’s moving company brings an oversize vehicle onto a large apartment complex, which severely damages the roller door causing thousands of dollars worth of damage, can be terminated!

 

  • have intentionally, recklessly – or by permitting someone else to have – caused an injury to the landlord, the property manager, an employee or contractor, or anyone occupying neighbouring property or common property. An example of this, could be when a tenant gets into a physical altercation with a neighbour.

 

  • be using the property or a property that is adjoining or adjacent for illegal purposes such as manufacturing drugs but also any other unlawful purposes sufficient to justify termination.

 

  • have seriously or persistently threatened or abused the landlord, the property manager or any employee or contractor of the landlord or the property manager, or caused or permitted threats, abuse or conduct.

 

  • have engaged – whether personally or via another person – in conduct, that caused someone to feel intimidated or harassed. This means that a tenant could be terminated, if a 3rd party witnessed a guest of theirs having a very serious altercation with a neighbour, and felt intimidated!

 

Who we are:

NextGen Property Mgmt (www.nextgenpm.com.au) is a boutique Real Estate licensed agency that specialises in property management. NextGen Property Mgmt does NOT has a sales team. Our area of focus is residential property and we operate in Sydney Inner West, Eastern Suburbs, St George and South West Sydney. NextGen was created from its infancy to cater for investors as it was founded by investors who quickly realised that in a highly regulated industry like Real Estate – competence, expertise, care and service by property managers varies greatly.

As an investor, you need to have trust for and feel valued by your property manager. You need to know that your property and tenants are being looked after with minimal disruption, and you are getting maximum return on your investment. At NextGen we understand that, because we are investors living busy lives ourselves. Our promise to you, is that you will no longer have to worry about your most valued asset because we will make sure to take care of it as if it is our own. If you want to learn more about us just click here to organise a time for a chat. Or call us on 0414 494 840. We would love to hear from you and to share our story.

 

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