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NSW Rental Law Reforms Take Effect from 19 May 2025
No Grounds Evictions:
“No-grounds” evictions will no longer be allowed.
Tenancies can now only be ended for valid reasons, including:
- Property sale
- Landlord or family moving in
- Major renovations or demolition
- Serious breach by tenant
New Re-Letting Restrictions:
Landlords must wait before re-letting if they end a lease for certain reasons:
- 12 months – withdrawing from rental market
- 6 months – sale or owner/family occupation
- 4 weeks – major renovations
These changes aim to provide greater security and fairness for renters.
Streamlined Pet Approval Process for Tenants:
Tenants can request permission to keep a pet in their rental property using a standard application form.
Landlords must respond within 21 days, providing a valid reason if they choose to refuse.
Acceptable reasons for refusal include:
- Property type restrictions
- Strata or community scheme by-laws prohibiting pets
- Owner living at the property
- Potential harm to the animal's welfare
Automatic Approval:
If no response is given within the 21-day period, the request is automatically approved.
Landlords and agents will also not be able to state in an advertisement that no pets are allowed at a rental property.
Introduction of Fee-Free Rent Payment Options
To alleviate financial burdens on tenants, the new laws mandate that landlords offer at least one fee-free method for rent payment, such as direct bank transfers.
This ensures tenants are not compelled to use payment methods that incur additional fees, promoting fairer financial practices in rental agreements.
Fee Free options:
- Bpay
- Centrepay
- Bank Transfer
Extended Notice Periods for Lease Terminations
Landlords must provide longer notice periods when ending a tenancy:
Periodic lease - At least 90 days' notice
Fixed term lease of 6 months or less - At least 60 days' notice and the termination date cannot be before the end of the fixed term
Fixed term lease of more than 6 months - At least 90 days' notice and the termination date cannot be before the end of the fixed term
Changes already in effect from 31st October 2024
Limiation on Rent Increases
Landlords are restricted to increasing rent no more than once every 12 months, regardless of the lease type.
This measure is designed to offer tenants greater financial stability.
Prohibition of Background Check Fee:
Tenants can no longer be charged for background checks or tenancy database listings during the application process.
This change eliminates additional upfront costs for prospective renters.
Changes from 1 July 2025
Mandatory Reporting of Tenancy Termination Reasons
Landlords and/or agents will be required to provide the reason for ending a tenancy when releasing or claiming a bond through Rental Bonds Online.
This initiative aims to enhance transparency and assist NSW Fair Trading to monitor rental market trends.
Upcoming Reforms (Date to Be Announced)
Portable Rental Bonds
The NSW Government plans to introduce a portable rental bond scheme, allowing tenants to transfer their bond from one property to another without the need to pay a new bond upfront.
This reform aims to ease the financial burden during the moving process.
Enhanced Privacy Protections
Future reforms will include stronger privacy protections for tenants, ensuring that personal information is handled appropriately and securely throughout the tenancy process.
