Changes to Rental Laws in NSW: What Tenants and Landlords Need to Know

Introduction

New rental laws have been implemented in NSW with significant implications for tenants and landlords. These reforms are aimed at improving housing stability and the protection of tenants’ rights amid the growing rental crisis.

Some of these changes came into effect on 31 October 2024 after NSW Parliament passed the Residential Tenancies Amendment Act 2024 (NSW). However, most of the changes came into effect on 19 May 2025.

Here is what renters and property owners need to know about the changes and their impact on the rental landscape across NSW.

Changes to NSW Rental Laws

The following changes commenced on 31 October 2024:

1. Applying extra fees to prospective tenants at the start of a tenancy is prohibited. This includes applying fees for background checks or for preparing a lease or tenancy agreement; and
2. Rent increases can only occur once per year. Previously, only periodic leases or fixed terms leases of more than 2 years had this rule. It now applies to all leases. There are some exceptions to this including that different rules apply for some fixed term leases of 2 years or less that were entered into before 13 December 2024 and for social housing tenancy agreements.

As to the other changes that commenced on 19 May 2025, they are as follows:

1. A lease cannot be terminated during its fixed term except in very limited circumstances. A lease can only be terminated by the landlord prior to its fixed term expiry if the property is unusable, the tenant has breached the tenancy agreement, the tenant has not paid rent or the landlord is experiencing undue hardship and has obtained a termination order from the Tribunal on that ground;
2. No grounds termination has been abolished. Landlords are now required to give a reason to end a lease and must provide tenants with a termination notice with an information statement and supporting documentation. These reasons include:
   • the tenant is at fault and has breached the lease, damaged the property or not paid rent;
   • the property is being sold or offered for sale with vacant possession;
   • the property needs to be empty for significant repairs or renovations, or the property will be demolished;
   • the property will no longer be used as a rental home such as where it will be used for a business;
   • the landlord or their family intend to move into the property;
   • the tenant lives in the property as part of their employment and their employment has ended;
   • the tenant is no longer eligible for an affordable or transitional housing program, or the property is used for student accommodation and the tenant is no longer a student; or
   • the property is part of a key worker housing program and needs to be used by key workers such as a teacher, health worker or police officer.
3. Where the landlord ends a lease for certain reasons (such as the reasons above), there is a period where a new tenancy agreement cannot commence for the property. This is a re-letting restriction. The re-letting restrictions are as follows:
   

   Reason for Tenancy Ending	Re-letting Restriction
   Premises no longer to be used for rented residential premises	12 months
   Proposed sale of premises	6 months
   Landlord or family member to reside at premises	6 months
   Demolition of premises	6 months
   Significant renovations or repairs	4 weeks

4. Changes to notice periods for ending a lease. The amount of notice required for ending a lease is now as follows:
   • for a periodic lease – at least 90 days;
   • for a fixed term lease of 6 months or less – at least 60 days and the termination date cannot be before the end of the fixed term; and
   • for a fixed term lease of more than 6 months – at least 90 days and the termination date cannot be before the end of the fixed term.
5. A landlord can now only refuse a tenant’s request to keep a pet for a certain reason. Landlord’s need to provide a written response to a pet request within 21 days and if they do not respond, the request is automatically approved. Landlord’s may refuse a request for a pet if:
   • there would be more than 4 animals at the property and that number is unreasonable (i.e. the property is not suited to a large number of animals);
   • the property is unsuitable for the animal due to fencing, lack of open space or because it would harm the animal’s welfare;
   • it is highly probable the animal will cause more damage than the bond could repair;
   • the landlord lives at the property;
   • keeping the animal would break other laws, local council rules, strata or community scheme by-laws or a residential community rule. However, strata by-laws that ban all pets are not valid and cannot be used as a reason to refuse a pet; or
   • the tenant did not agree to a reasonable condition for keeping the animal. Noting that there are limits on the conditions a landlord may ask (i.e. the landlord cannot ask a tenant to increase the bond or rent as a condition for allowing the pet).
6. Landlords and agents need to offer tenants rent payment by bank transfer, without any additional fees.

Enforcement

These changes will be enforced by NSW Fair Trading with a new Rental Taskforce created. This Rental Taskforce contains dedicated inspectors and compliance officers who will focus on preventing and responding to breaches of rental laws.

Specifically in relation to ending leases, from 1 July 2025, NSW Fair Trading will collect information about reasons for why a tenancy has ended. Landlords and agents will need to provide the reason for the termination of the lease when releasing or claiming a bond refund through Rental Bonds Online.

Penalties will apply in relation to the above changes if they are not complied with.

Conclusion

As these changes are implemented across NSW, landlords and tenants will need to adapt and familiarise themselves with their obligations and rights.

Staying informed and up to date regarding these changes and their impacts will be key to avoiding disputes and ensuring compliance.

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