The New South Wales government has introduced significant updates to rental laws, offering greater protections for tenants while clarifying responsibilities for landlords. These changes aim to address long-standing concerns around security, pet ownership, and rent increases.
Here’s a breakdown of the key updates and when they come into effect.
Key Dates
The changes are being rolled out in stages, with some already in effect and others starting later in 2024.
- 31 October 2024: Some changes took effect, including fee and rent increase restrictions.
- 19 May 2025: New reforms including ending no grounds terminations, making it easier for renters to keep pets, and ensuring renters can pay rent by bank transfer.
Key Updates to NSW Rental Laws
1. Rent Increases Limited to Once Per Year (effective 31 October 2024)
To prevent frequent rent hikes, landlords can now only increase rent once every 12 months for all lease types (previously, this only applied to periodic leases). This gives tenants more stability in their housing costs.
2. Removal of Certain Upfront Fees (effective 31 October 2024)
Tenants will no longer be charged for:
- Background checks
- Tenancy agreement preparation fees
- Other administrative costs at the start of a lease
This reduces the financial burden on renters when moving into a new property.
3. Landlords Must Provide a Valid Reason to End a Lease (effective 19 May 2025)
One of the biggest changes is the removal of ‘no grounds’ terminations. Previously, landlords could end a fixed-term lease without giving a reason. Now, they must provide a valid justification, such as:
- Selling the property
- Moving in themselves or for a family member
- Major renovations requiring vacant possession
This change provides tenants with greater security, reducing the risk of sudden evictions.
4. Changes to Notice Periods for Ending a Fixed-Term Tenancy (effective 19 May 2025)
The required notice periods for ending a tenancy have been adjusted:
- Landlords must now give 30 days’ notice if the tenant is in breach (up from 14 days).
- Tenants must still provide 14 days’ notice for month-to-month agreements but may have longer periods for fixed-term leases.
These changes ensure both parties have reasonable time to adjust before a tenancy ends.
5. Easier Pet Approvals in Rental Properties (effective 19 May 2025)
Landlords can no longer unreasonably refuse a tenant’s request to keep a pet. While they can still set reasonable conditions (e.g., pet damage clauses), blanket bans are no longer allowed.
If a landlord refuses, they must provide a valid reason, such as strata bylaws prohibiting pets.
6. Tenants Must Be Able to Pay Rent by Bank Transfer (effective 19 May 2025)
Landlords and agents must offer at least one fee-free payment method, such as direct bank transfer. This prevents tenants from being forced into payment methods with hidden fees.
What Do These Changes Mean for You?
- Tenants gain more rights, including better security, pet-friendly policies, and protection from excessive rent hikes.
- Landlords must ensure compliance with the new rules, particularly around lease terminations and pet approvals.
Whether you’re renting or leasing out a property, staying informed will help you navigate these changes smoothly.
For full details, visit the NSW Fair Trading website.
How We Can Help
At Farrell Goode, our experienced real estate lawyers and conveyancers stay up to date with legislative changes to provide you with the best possible advice. Whether you need assistance with navigating new tenancy agreements, understanding your rights and obligations as a landlord or tenant, or resolving rental disputes, our team is ready to help. We offer personalised, practical guidance to ensure your property matters are handled smoothly and efficiently.
Contact us today to discuss how these rental law changes might affect you, and let us provide the clarity and support you need.
