In the past two months, as Bailey Carville-Hayley hunted for a rental in Darwin's tight rental market, there were nights he resorted to sleeping in a car.

He was given two weeks to clear out of his home and find somewhere new for him and his pet dog.

He's since landed on his feet, but the process of finding a rental was stressful.

One practice he had seen and even participated in himself was rent bidding, where rental applicants can be asked to offer more money for the property than has been listed.

The Northern Territory government on Wednesday passed new laws it says will stop scenarios like this occurring and will make the rental market fairer.

So what's changed?

The Rental Tenancies Legislation Amendment Bill 2023 will change several elements of the rental market in the NT, which has been described as the worst for renters in the country.

One key change is a ban on rent bidding.

Notice times for lease terminations will be extended to 60 days for fixed-term and periodic leases, increased from 14 and 42 days respectively.

e able to give landlords 14 days' notice.

Landlords will no longer be able to charge fees for lease breaks and compensation for early lease terminations will be capped.

If a renter terminates a lease less then halfway through the term, they will have to pay four weeks' rent.

If the lease is terminated more than halfway through the term, renters will be required to pay two weeks' rent.

Laws have also changed to better accommodate people fleeing domestic and family violence.

If a person is fleeing domestic violence, they will not be held liable for damages caused by acts of domestic violence or caused by a perpetrator.

Instead, the perpetrator can be pursued for damages.

However, security bonds will still be held by landlords, which leaves the Northern Territory as the only place in Australia without an independent bond board to oversee repayment of bonds to tenants.

The changes are expected to be in place by January 2024.

What's the reaction so far?

Real estate bodies and tenant advocates have expressed a mix of disappointment and relief.

Real Estate Institute NT chief executive Aswin De Silva said the new rules around eviction notices and compensation reductions for lease breaks would present challenges.

"We need to ensure that private landlords are also protected [and] the mum and dad operations," he said.

"We should not be in a position where they are selling properties under duress and moving interstate."

Al Cabry, a tenancy solicitor at the Darwin Community Legal Service, said the changes were a long-awaited improvement, but fell short in certain areas.

"They're not as far as we'd like them to [go] but they're definitely a step in the right direction and will make a huge difference to tenants," they said.

Al Cabry, a tenancy solicitor, welcomed some changes but said there were still systemic issues.(ABC News: Michael Franchi)

Al Cabry also questioned how tightly the changes would be enforced.

"There's what's written down on paper and then there's what's actually enforced, and it's a matter for the relevant enforcement body, which in this case is Consumer Affairs, to look at what's happening and to take the necessary action," they said.

Wait and see for renters

Alice Springs resident Kieran Gale said the new laws were an improvement, but said there were still flaws in the rental system.

Kieran Gale was given two weeks' notice that his lease would be terminated. (ABC News: Xavier Martin)

Rent hikes and evictions have seen him live in six different places in a year. He was recently given just two weeks to vacate his rental.

"I had to hire a truck. There's a lot of financial burden to make it [moving rentals] all happen," he said.

"Renters are kind of at the mercy of landlords at times."