While evictions can be stressful and time-consuming, following the proper steps and knowing your rights as a landlord can help make the process smoother.
In this article, we’ll provide a comprehensive guide on evicting a tenant in NSW, including the grounds for eviction, notice requirements, and the step-by-step process.
Grounds for Eviction Under Residential Tenancy Agreement in NSW
There are several reasons why you might need to evict a tenant in NSW:
- Non-payment of rent: If your tenant is 14 days or more behind on their rent, you can issue a termination notice. This situation, known as rent arrears, refers to when rent is overdue by 14 days or more. According to the NSW Fair Trading, in 2019-2020, 16,128 applications for termination were lodged with the NSW Civil and Administrative Tribunal (NCAT) due to rental arrears.
- Breach of tenancy agreement: If your tenant breaches the lease terms, such as causing damage to the property or conducting illegal activities, you may have grounds for eviction. Make sure you document any breaches and communicate with your tenant in writing.
- End of fixed-term tenancy: When a fixed-term lease comes to an end, you can regain possession of the property by giving the appropriate notice. At the end of a fixed-term agreement, specific notice must be given to end the tenancy, ensuring that both parties are aware of the termination conditions. Keep in mind that if you don’t provide notice and the tenant stays on, the lease automatically becomes a periodic tenancy, which has different notice requirements for termination.
Termination Notice Requirements for Eviction
If you plan to break the lease early, the notice period you must give your tenant depends on the reason for the eviction and the type of tenancy agreement.
Here’s a quick breakdown, starting with the notice to vacate, which is the formal document used to initiate the eviction process:
| Reason for Eviction | Notice Period |
| Non-payment of rent | 14 days |
| Breach of agreement | 14 days (can be as short as 7 days for serious breaches) |
| End of fixed-term tenancy (tenant has lived in the property for up to 6 months) | 14 days |
| End of fixed-term tenancy (tenant has lived in the property for more than 6 months) | 30 days |
| Periodic agreements | Typically 90 days, but can be 30-60 days in certain circumstances |
When issuing a termination notice, make sure to include:
- The address of the rental property
- The date the tenancy agreement will be terminated
- The reason for termination (if applicable).
The Eviction Process for Rented Premises
Now that you know the grounds for eviction and the notice requirements, let’s walk through the step-by-step process of evicting a tenant in NSW.
- Serve the tenant with a valid written termination notice that includes all the necessary information, ensuring it complies with the terms set out in the lease agreement or residential tenancy agreement. The notice must clearly identify the rented premises and adhere to both the rental and lease agreement stipulations.
- If the tenant doesn’t vacate the property by the specified termination date, the rental provider can apply to the NSW Civil and Administrative Tribunal (NCAT) for a possession order. If NCAT grants the possession order, the tenant will be given a date by which they must vacate the property.
- If the tenant still refuses to leave after the NCAT order, you can obtain a warrant for possession from NCAT. Only the police are authorised to carry out evictions, ensuring the process adheres to legal requirements.
How Landlord Insurance Can Assist During the Eviction Process
Here are some ways how landlord insurance can help during the eviction process:
- Coverage for legal expenses: Quality landlord insurance policies will typically cover legal expenses associated with evicting a tenant, such as tribunal application fees and the cost of a property manager representing the landlord at the tribunal. By having your property manager represent you, you don’t need to worry about representing yourself, filling out the required forms and with insurance you don’t even need to worry about the expense.
- Loss of rent coverage: Many policies provide loss of rent coverage but some don’t offer or has reduced cover for rental default, when the tenant stops paying rent and refuses to vacate the property.
- Changing requirements during COVID-19: Normally, a landlord needs to provide proof they have taken steps to evict a non-paying tenant before claiming loss of rent. However, some insurers waived this requirement during the COVID-19 eviction moratorium period, as long as the lease was a fixed-term one.
Important Considerations for Evicting Tenants in NSW
Throughout the eviction process, keep these important points in mind:
- Tenants can challenge an eviction notice and present their case at the tribunal hearing. Be prepared to provide evidence supporting your reason for the eviction.
- Keep detailed records of all communication and interactions with the tenant and any evidence of breaches or unpaid rent. This documentation will be essential if the case goes to the tribunal.
- Consider seeking professional advice from a property manager or lawyer specialising in tenancy law to ensure you follow the correct procedures and protect your interests.
What Expenses Are Covered Under a Landlord Insurance
The insurance can cover various expenses related to evicting a tenant, such as:
Tribunal Application Fees
Premium landlord insurance policies typically cover legal expenses associated with evicting a tenant, such as tribunal application fees and the cost of a property manager representing the landlord at the tribunal.
While lawyers are not allowed to represent owners at the NSW Civil and Administrative Tribunal (NCAT), a property manager can, and their fees are usually covered by the insurance policy.
Legal expense coverage ensures landlords can pursue an eviction through the proper legal channels without incurring significant out-of-pocket costs.
Hiring Enforcement for the Eviction Order
If a tenant refuses to leave after being legally evicted, it may be necessary to engage a sheriff or bailiff to enforce the eviction order. Many landlord insurance policies will cover the costs of hiring a statutory authority (sheriff, bailiff, etc.) to carry out the eviction.
Some policies may also reimburse the cost of changing locks if ordered by the statutory authority during the eviction process.
Repairing Accidental or Malicious Damage Caused by Tenants
Landlord insurance policies often include coverage for accidental or malicious damage caused by tenants. This means if the tenant has caused damage to the property that is not wear and tear, the insurance can help cover the cost of repairs to restore the property to its original condition.
Policies may also include specific coverage for damage caused by tenants’ pets or due to illegal drug activity.
Finding A New Tenant
After a tenant has been evicted, the landlord will need to find a new tenant to occupy the property. The landlord insurance policies include coverage for reletting fees up to a certain amount.
This can help offset the costs associated with advertising the property, conducting viewings, and processing new tenant applications.
Key Takeaways
- Evicting a tenant in NSW can be a stressful and time-consuming process.
- Knowing your rights as a landlord and following proper steps can help make the process smoother.
- Having landlord insurance can help during evictions by covering legal costs, loss of rent, and changing COVID-19 requirements.
- Costs that may be covered by insurance include tribunal fees, enforcement costs, tenant damage, repairs, and reletting fees.
- Several grounds for eviction exist, including non-payment of rent, breach of tenancy agreement, and end of fixed-term tenancy.
- Notice requirements vary depending on the reason for eviction and the type of tenancy agreement.
- Issuing a valid written termination notice is the first step in eviction.
- Tenants can challenge an eviction notice and present their case at the tribunal hearing.
- Keeping detailed records of communication and interactions with the tenant is essential.
- Seeking professional advice from a property manager or lawyer specialising in tenancy law is recommended.