‘Portable Bonds’ Initiative for NSW Renters Announced
Millions of renters in New South Wales will soon benefit from a new initiative that allows direct transfer of their bond to a new property when they move. This change, announced by the state government today, aims to alleviate the financial burden faced by renters who currently need to pay a new bond before receiving a refund from their previous rental.
The NSW government is set to invest $6.6 million to develop and implement Australia’s first Portable Rental Bonds Scheme. This innovative measure will enable the bond board to digitally transfer bonds from one property to another, thereby cutting down on the number of renters experiencing the “double bond” issue.
Premier Chris Minns on Cost-of-Living Relief
Premier Chris Minns highlighted the importance of this measure, which is expected to be operational by next year, in providing cost-of-living relief amid high rents, low vacancy rates, and high inflation.
“Moving house is one of the most stressful things you can do, not to mention expensive for many renters,” said Minns. “The process can leave renters out of pocket for up to several weeks. Tenants are also faced with an average moving cost of $4000 and the prospect of having to pay a new bond before their old one is returned.”
Benefits of the Portable Bonds Scheme
The new scheme is designed to maintain the integrity of the bond system, ensuring that homeowners have security while improving cash flow and reducing financial stress for renters. By digitally transferring bonds, the scheme aims to streamline the moving process and provide immediate financial relief for tenants.
Additional Reforms for Renters
At the NSW State Labor Conference, Premier Minns also announced forthcoming reforms that will prohibit landlords from evicting tenants without “reasonable grounds.” This long-promised reform is part of broader efforts to protect renter rights and ensure a fairer rental market in NSW.
The introduction of the Portable Rental Bonds Scheme, along with the new eviction rules, marks a significant step forward in addressing the challenges faced by renters and ensuring a more secure and supportive rental environment in New South Wales.
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