Rental Law Reforms Now in Effect Across NSW

The NSW Government has introduced significant changes to residential tenancy laws that affect both landlords and tenants. These changes are part of the Residential Tenancies Amendment Act 2024 and Residential Tenancies Amendment Regulation 2025, and are designed to improve stability, affordability, and transparency across the rental market.

While some reforms took effect on 31 October 2024, the majority came into effect on 19 May 2025. Below is a summary of the most important changes and what they mean.

These laws apply to both new and existing rental agreements.

The Changes & What They Mean for You

1. ‘No Grounds’ Terminations Have Been Removed

   Landlords can no longer end a tenancy without providing a valid reason, even at the end of a fixed-term lease. Approved reasons include:

   • The property is being sold with vacant possession
   • Major renovations or demolition
   • The landlord or a family member intends to move in
   • The property will no longer be used as a rental

   This change provides greater security for tenants and promotes transparency in how leases are ended.

2. Re-letting Restrictions Now Apply

   When a lease is ended for the above reasons, landlords must wait before re-letting the property. For example:

   • 6-month restriction if the property is sold or a family member moves in
   • 4-week restriction for major renovations

   This helps ensure that tenancy terminations are genuine, not a way to cycle tenants unfairly.

3. Longer Notice Periods for Ending a Lease

   Landlords must now give more notice before ending a tenancy:

   • Periodic leases: at least 90 days’ notice
   • Fixed-term leases:
     • 60 days for terms of 6 months or less
     • 90 days for terms longer than 6 months (Note: the lease cannot end before the end of the fixed term.)

   These changes give tenants more time to plan their next move and reduce the stress of rushed relocation.

4. New Rules Around Keeping Pets

   Tenants now have the right to request a pet in their rental home, and landlords may only refuse for specific, valid reasons.

   • Landlords must respond within 21 days, or the request is automatically approved
   • Strata by-laws that ban all pets are no longer valid
   • Consent applies for the life of the pet, even if the landlord changes

   Landlords also cannot increase the rent or bond as a condition for allowing a pet.

5. Clearer Rules for Rent Payments

   Landlords must now offer bank transfer as a rent payment option, with no additional fees. Tenants cannot be required to use third-party apps or platforms to make rent payments. More flexibility and transparency for both parties.

Already in Effect Since October 2024

Two changes were introduced earlier on 31 October 2024:

• Rent increases are now limited to once per year, regardless of lease type
• No extra fees are allowed at the beginning of a lease, including charges for tenancy agreement preparation or background checks

A New Taskforce to Monitor Compliance

To support these changes, NSW Fair Trading has established a dedicated Rental Taskforce, with inspectors and compliance officers focused on upholding the new laws and taking action against breaches.

If you’d like more information, you can read the full summary on the NSW Fair Trading website, or contact your strata manager for guidance on how these changes may impact your building.

We’ll continue to keep you informed as new updates become available.