In recent months, a concerning trend has emerged that threatens the foundation of the residential rental market in New South Wales.
As a real estate agency principal with years of experience in Sydney’s premium property market, I’ve witnessed firsthand how well-intentioned tenant protection measures have created an environment where some savvy tenants can game the system, leaving landlords exposed and vulnerable.
The New Playbook: Why Pay Rent?
The traditional notion that tenants must pay rent to maintain occupancy is being challenged by what I call “professional tenants” who have learned to navigate the system.
In the past four months alone, my agency has handled three nearly identical cases involving high-income professionals who simply stopped paying their rent—all in properties commanding weekly rents between $1,400 and $1,500.
These weren’t tenants facing genuine hardship. They were individuals working in financial markets, legal services, and insurance—professionals who understood the complexity and inefficiency of our current dispute resolution system and exploited it to their advantage.
A System That Fails Property Owners
The current process for addressing non-payment of rent is tedious and ineffective. It begins with termination notices and tribunal applications, followed by lengthy wait periods for hearings.
When you finally reach the tribunal, members often direct landlords to “work it out” with tenants through conciliation processes that rarely yield results.
Even with a conciliator who recognises the landlord’s position, their ability to assist is severely restricted.
And just when it seems justice might prevail, tenant advocates enter the picture, deploying terms like “retaliatory action” and “personal circumstances” to derail proceedings.
I’d rather hear “my dog ate my rent money”—it seems more plausible than some of the excuses that are accepted in tribunal.
In all three recent cases I’ve managed, tribunal members made decisions based on subjective considerations rather than the clear facts of the lease agreements.
The outcomes? Landlords left with mounting losses, wasted time, and increased mortgage repayment risks.
The Real-World Consequences
The narrative that portrays all landlords as wealthy investors exploiting vulnerable tenants is dangerously simplistic.
Many property owners are everyday Australians who have invested their hard-earned savings and taken on significant debt to secure their financial future.
When tenants stop paying rent for extended periods, the consequences are serious:
- Landlords still must meet mortgage repayments without rental income
- Property maintenance continues to require funding
- Strata levies, council rates, and insurance premiums don’t pause
- Legal costs for tribunal proceedings add to the financial burden
Contrary to popular belief, landlord insurance doesn’t solve these issues. Most policies have significant limitations, excess payments, and lengthy claim processes that don’t address the immediate financial pressure.
The Looming Impact of No-Fault Eviction Bans
As if the current situation weren’t challenging enough, the NSW government is set to implement a ban on no-fault evictions from May 19, 2025.
While proponents claim these changes will create “a fairer rental market,” my recent experiences suggest they may further embolden professional tenants who already know how to exploit the system.
Under the new rules, landlords will be required to provide a valid reason to end all lease types—both fixed-term and periodic agreements.
While there are legitimate grounds included (such as property sales, renovations, or owner occupation), the practical reality of proving these reasons to skeptical tribunal members is concerning.
The current climate at tribunals, where landlords are already viewed with suspicion, suggests that increased eviction restrictions will further tilt the power balance against property owners.
When combined with longer notice periods and potential penalties for “non-genuine” reasons, these changes create additional hurdles for landlords legitimately trying to protect their investments.
A Path Forward
If we want to maintain healthy rental markets that benefit both tenants and landlords, we need meaningful reform that balances tenant protections with landlord rights:
- Increased bond periods: Four weeks’ bond is inadequate protection for properties renting at over $1,000 weekly. Extending this to eight weeks would provide more appropriate security.
- Streamlined eviction procedures: When rent non-payment is straightforward and documented, the process to recover possession should be more efficient, with less emphasis on mediation that favours tenants who aren’t paying.
- Immediate debt recovery: Enabling registered collection agencies to become involved earlier would help landlords recover losses more effectively.
- Balance in tribunal proceedings: Tribunal members need clearer guidelines to prevent subjective decisions that dismiss legitimate landlord concerns as “retaliatory.”
- Practical implementation of no-fault eviction bans: If these changes must proceed, they should include robust protections for landlords against professional tenants who exploit the system.
The current imbalance in tenant-landlord legislation creates significant risk for the entire residential asset class.
With landlords already navigating complex relationships with taxation authorities and lending institutions, adding another layer of regulatory burden that favours non-paying tenants over property rights undermines confidence in property investment.
As we continue to face housing supply challenges across Australia, policymakers must recognise that landlords provide an essential service.
Creating an environment where property investors feel secure and supported is crucial to maintaining and expanding our rental housing stock.
The solution isn’t less protection for tenants in genuine need, but rather a more balanced approach that recognises the legitimate rights and responsibilities of both parties in the rental relationship.
Nick Countouris is the Principal of Richardson & Wrench Pyrmont, with extensive experience in Sydney’s premium property market.
