Changes to NSW Rental Laws

The rental landscape in NSW is undergoing a major transformation. On 24 October 2024 the NSW Parliament passed the Residential Tenancies Amendment Bill 2024, with the changes now in effect.

Below is a summary of the changes to rental law:

Limitation of rent increases (introduced 31 October 2024):

Rent can only be increased once every 12 months (meaning the landlord must wait 12 months from the last increase before making another increase). Rent must not be increased within the first 12 months of a new tenancy.

Termination of tenancy (introduced 19 May 2025):

Moving forward, landlords will no longer be able to terminate without grounds on 90 days notice. Furthermore, the landlord will no longer have a right to terminate simply because it is the end of the agreed fixed term. Instead, landlords will only be able to terminate based on specific reasons.

Some of the key reasons are:

• Breach of lease by tenant, damage to property or non-payment of rent
• Property has been sold
• Property is proposed to be sold
• Significant renovations or repairs
• Property is to be demolished
• Property will not be used as a rental for at least 12 months
• Landlord or relevant person is moving in for at least 6 months

This change relates to both fixed-term and periodic leases and supporting documentation will need to be provided.

Re-letting restriction:

Where a lease ends for certain reasons, there is a period where a new tenancy agreement cannot start. This is known as a re-letting restriction. See the below table for full details.

Pets in properties (introduced 19 May 2025):

Moving forward, it will be easier for tenants to have pets in rental properties. A landlord can only refuse a pet for certain prescribed reasons, those being:

• If there are already too many animals at the property
• The property is unsuitable for the type of animal
• The animal is likely to cause more damage than the bond can repair
• The landlord lives at the property

It is important to note that if a tenant disagrees with the ground for refusal or if they think a condition imposed by the landlord is unreasonable, they can apply to NCAT.

How will the changes be implemented and enforced?

NSW Fair Trading will enforce the changes, with a rental taskforce created to focus on preventing and responding to breaches of rental laws.