BigchangestoNSWtenancylaws–here'swhatyouneedtoknow
On24October2024,theNSWParliamentpassed theResidentialTenanciesAmendmentBill2024, whichhasnowbecometheResidentialTenancies AmendmentAct2024.Supportingregulationsincludingupdatesaroundno-groundsterminations andpetownership-aresetoutintheResidential TenanciesAmendmentRegulation2025.
Thesereformsmarkasignificantstepforwardin makingtherentalmarketfairer,morestablefor tenants,andclearerforlandlords.Whetheryou're rentingoutapropertyorcallingonehome,these changesaredesignedtobringgreaterconfidence andcertaintytotheprocess.
Theseupdatesreflectamoremodernandbalanced approachtorentinginNSW,givingeveryone involvedastrongerfoundationforsuccess.
What’schanging
Ending‘no-grounds’terminations: Landlordswillnowneedtoprovideavalid reasonwhenendingalease.
Petswelcome(withlimits):Tenantscan requesttokeepapet.Landlordscanonly refuseonspecific,reasonablegrounds.
Rentincreasescapped:Rentcanonlybe increasedonceevery12months.
Nomoreupfrontapplicationfees:Applying forarentalwon’tcosttenantsoutofpocket.
Flexiblerentpayments:Tenantsmustbe offeredtheoptiontopayviabanktransfer.
Alreadyineffectfrom31October2024:
Banonapplicationfees
Annuallimitonrentincreases
Comingintoeffect19May2025:
Reasonsrequiredtoendalease
Petconsentprocess
Fee-freepaymentoption
Longernoticeperiods
Re-lettingrestrictions
Penaltiesifanagentbreaches theexclusionperiod
NSWFairTradinghassetupa$8.4mtaskForcetoensurethisisenforced. *Privatelandlordscanalsohavepenaltiesenforced
Overviewofthechanges
Applicationfees
Asof31October2024,tenantsandrental applicantscannolongerbechargedextrafees whensearchingfor,applyingfor,orstartinga tenancy.
Thisincludeschargesforbackgroundchecks andpreparingtenancyagreements,which arenowprohibited.
Keepingapet
Asofthe19May2025,tenantswillhave greaterrightswhenitcomestokeepingpets.
Landlordswillonlybeabletorefuseapetfor specificreasonsandmustrespondtopet requestswithin21days,otherwise,approvalis automatic.
Theywon’tbeallowedtoincreasetherentor bondasaconditionforhavingapet,andblanket “nopets”rules.
Rentincreases
From31October2024,rentcanonlybe increasedonceevery12monthsforalllease types.Previously,thisruleonlyappliedto periodicagreementsandfixed-termleases longerthantwoyears.Ithasnowbeenextended tocoverallleases.
Pleasenote:differentrulesstillapplytofixed termleasesoftwoyearsorlessthatwere signedbefore13December2024.
Payingrent
From19May2025,landlordsmustofferafee freebanktransferoption.Centrepaymustalso beofferedlaterin2025ifthetenantrequestsit.
Tenantscannotbeforcedtouseaparticular serviceorapp.
Endingatenancy
Landlordswillberequiredtoprovideavalid reasontoendatenancy,whetherit’sa periodicorfixed-termlease.
Acceptablereasonsinclude:
Abreachoftheleasebythetenant,suchas non-paymentorpropertydamage
Thepropertyisbeingsoldorofferedforsale withvacantpossession
Thepropertyrequiresmajorrepairs, renovations,ordemolition
Thepropertywillnolongerbeusedasa rental(e.g.convertedtoabusiness)
Thelandlordorafamilymemberintendsto moveintotheproperty
Thetenancyistiedtoemployment,andthat employmenthasended
Landlordsmustprovidetenantswitha terminationnoticethatincludesanofficial informationstatementoutliningboth parties’rightsandobligations.
Incertaincasessupportingdocumentation mustalsobeprovided.
Guidingthenewrentalchanges
Re-lettingrestrictions
Insomesituations,whenalandlordoragent endsalease,amandatorywaitingperiod, knownasare-lettingrestriction,applies beforeanewtenancycanbegin.Thelength ofthisrestrictiondependsonthereasonthe tenancywasterminated,suchassellingthe property,carryingoutmajorrenovations,orthe landlordortheirfamilymovingin.
Noticeperiodsforendingalease
From19May2025,tenantsmustreceive adequatenoticebeforebeingrequiredto vacateaproperty.
Thenoticeperiodrequiredwillgenerallybe: Periodicleases:atleast90days’notice
Fixed-termleasesof6monthsorless:at least60days’notice,withtheenddateno earlierthanthefixedterm’sexpiry
Fixed-termleaseslongerthan6months:at least90days’notice,withtheenddateno earlierthanthefixedterm’sexpiry
Shorternoticeperiodswillstillapplyin specificcases,suchaswhenthetenant breachestheagreement.
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