Upcoming Changes to Rental Laws in NSW: What You Need to Know
Starting Monday, 19 May 2025, significant changes to rental laws in NSW will come into effect.
Here’s a breakdown of the key changes you need to be aware of:
1. Ending a Tenancy
From 19 May 2025, landlords will no longer be able to end a tenancy without providing a valid reason. The practice of “no-grounds” terminations will end for both fixed-term and periodic leases. In some cases, landlords may need to provide supporting documentation to justify the termination, and penalties will apply for invalid terminations.
Landlords will also be required to provide tenants with a Termination Information Statement before a tenancy ends. This will give tenants more transparency and clarity about the reason for the termination.
Additionally, from 1 July 2025, NSW Fair Trading will collect data on why tenancies end through Rental Bonds Online, helping to track and analyze trends in rental terminations.
2. Notice Periods for Fixed-Term Leases
When a fixed-term lease is coming to an end, tenants will receive more notice:
60 days’ notice for leases of 6 months or less
90 days’ notice for leases longer than 6 months
3. Re-letting Restrictions
If a landlord ends a tenancy for specific reasons, such as selling the property or making renovations, there will be a period during which a new lease cannot be entered into. However, if the landlord’s circumstances change and they can no longer proceed with their original plans, they may apply to NSW Fair Trading to re-let the property, provided they can provide supporting documents.
This change will have significant impacts. Should you require further information regarding the specific restriction periods please reach out to us.
4. Pet Requests
Keeping of pets is also a huge change, with tenants now be able to request to keep a pet. Landlords can only refuse this request for specific reasons and must respond within 21 days. If the landlord fails to respond within this timeframe, the pet is automatically approved. A new Pet Application Form and guidance will be available from Fair Trading 19 May 2025.
5. Fee-Free Rent Payments
Landlords and agents will be required to offer tenants a fee-free, electronic method of paying rent, such as through bank transfer or BPay. Additionally, tenants cannot be forced to use a specific payment service provider. Later in 2025, Centrepay will also be an option, though landlords will not be required to register for Centrepay unless the tenant selects that payment method.
6. Advertising and Pet Policies
Landlords and agents will no longer be able to advertise that no pets are allowed in rental properties. This change ensures that renters who wish to have pets are not automatically excluded from certain rental options.
Changes Already in Effect (Since 31 October 2024)
In addition to the changes coming in May 2025, there are already some important reforms that have been in place since 31 October 2024:
Fees Before a Tenancy
Prospective renters can no longer be charged fees for background checks, identity checks, or the preparation of tenancy agreements.
Rent Increases
Rent can only be increased once every 12 months for all types of leases, including when a lease is being renewed or replaced. The only exception to this rule is when a tenant’s social housing rent rebate increases.
Please contact us for further information
Irene 0404 006 773
Nada 0423 536 061
hello@inpropertyagents.com.au
