Major changes to NSW rental laws are coming into effect on May 19, 2025, aimed at creating a fairer rental market for everyone. Here’s everything landlords and tenants should understand about these important reforms.
New Era for NSW Rental Market
The NSW Government is introducing significant reforms to the rental landscape, with most changes taking effect on Monday, May 19, 2025. These reforms are the result of extensive consultation with renters, landlords, real estate professionals, and industry bodies to create a more stable and equitable rental environment.
Key Changes Coming May 19, 2025
End of “No-Grounds” Evictions
Perhaps the most substantial change, landlords must now provide a valid reason to end a tenancy. This applies to both fixed-term and periodic leases, effectively ending “no-grounds” evictions across NSW.
What landlords need to know:
• Supporting documentation will be required in certain circumstances
• Penalties will apply for terminations that aren’t genuine
• Landlords must provide tenants with a Termination Information Statement
• From July 1, 2025, NSW Fair Trading will track tenancy termination reasons through Rental Bonds Online
Extended Notice Periods for Fixed-Term Leases
Tenants on fixed-term leases will receive greater protection through extended notice periods:
• 60 days minimum notice for leases of 6 months or less
• 90 days minimum notice for leases longer than 6 months
Re-letting Restrictions
New regulations will prevent immediate re-letting of properties after certain types of terminations. This applies when landlords have terminated a lease claiming they need the property for other purposes such as sale or renovations.
Landlords facing unexpected changes in circumstances can apply to NSW Fair Trading for permission to re-let the property earlier, but must provide supporting documentation.
Pet-Friendly Rental Properties
The reforms introduce a more balanced approach to pets in rental properties:
• Tenants can formally request to keep a pet
• Landlords can only refuse for specific reasons
• Landlords must respond within 21 days, or the pet request is automatically approved
• A new Pet Application Form will be available when the laws commence
• Rental listings can no longer advertise “no pets allowed”
Fee-Free Rent Payment Options
To improve affordability and convenience:
• Landlords and agents must offer fee-free electronic payment methods
• Options must include bank transfers or BPAY
• Tenants cannot be required to use specific payment service providers
• Later in 2025, Centrepay will also become a mandatory offering
Changes Already in Effect (Since October 31, 2024)
Ban on Pre-Tenancy Fees
Prospective tenants can no longer be charged fees for:
• Background checks
• Identity verification
• Preparation of tenancy agreements
Rent Increase Limitations
Rent increases are now limited to once every 12 months for all lease types, including during lease renewals or replacements. The only exception applies to changes resulting from increases in social housing rent rebates.
Preparing for the Changes
The Residential Tenancies Amendment Regulation 2025 is now available online, along with the Residential Tenancies Amendment Act 2024. Additional details about supporting documentation requirements, pet request processes, and applications for re-letting properties will be published before May 19, 2025.
These comprehensive reforms represent the most significant changes to NSW rental laws in recent years, aiming to balance the rights and responsibilities of both landlords and tenants while creating a more stable rental market.
If you would like to know more about the changes and how they will affect you contact Moshav Realty.
Moshav Realty is a boutique property management agency serving the eastern suburbs, eastern beaches, CBD, lower north shore, and inner west areas of Sydney. Specialising in both residential and commercial real estate.
Source: NSW Office of Fair Trading.
