Changes to NSW Rental Laws 2025: What Landlords and Tenants Need to Know

Modern Living Room NSW

Effective 19 May 2025, significant changes to NSW rental laws have come into force, marking the most substantial changes in over a decade. These amendments, introduced through the Residential Tenancies Amendment Act 2024 and the accompanying Residential Tenancies Amendment Regulation 2025, aim to create a fairer and more transparent rental market for both landlords and tenants.

Key Changes

1. End of ‘No-Grounds’ Evictions

Landlords are now required to provide a valid reason when terminating any tenancy agreement, whether fixed-term or periodic. Acceptable grounds include:

• Significant renovations or repairs

• Demolition of the premises

• Owner Occupation

• Sale of the property

  
  

This change enhances security for tenants and aligns NSW with similar reforms in other Australian states. 

2. Streamlined Pet Approval Process

Tenants can now request to keep a pet, and landlords must respond within 21 days. Refusals must be based on specific reasons, such as:

• By-laws or council regulations prohibiting pets

• The owner also lives at the property

  
  

Blanket bans and additional pet-related fees (like extra rent or bond) are not permitted. 

3. Rent Increase Limitations

Rent can now only be increased once every 12 months, regardless of the lease type. A minimum 60-day written notice is still required for any rent increase. 

4. Fee-Free Rent Payment Options

Landlords must offer at least one fee-free method for rent payment, such as direct bank transfer or Centrepay. This ensures tenants are not burdened with additional costs when paying rent. 

5. Prohibition on Charging for Background Checks

Landlords and agents can no longer charge prospective tenants for background checks or related services during the application process. 

Legal Perspective

These reforms represent a significant shift towards tenant protection and transparency in the rental market. Landlords must now navigate a more regulated environment, ensuring compliance with the new requirements to avoid potential penalties.

From a legal standpoint, it’s crucial for landlords and property managers to:

• Review and update tenancy agreements to reflect the new laws

• Implement clear processes for handling pet requests and rent increases

• Ensure all communications and notices comply with the update regulations

Failure to adhere to these changes can result in disputes and legal challenges, emphasizing the importance of staying informed and seeking legal advice when necessary.

Conclusion

The 2025 rental law reforms in NSW aim to balance the rights and responsibilities of landlords and tenants, fostering a more equitable rental market. Landlords should take proactive steps to understand and implement these changes, ensuring compliance and maintaining positive tenant relationships.

If you have any questions about the 2025 rental reforms feel free to reach out to our team.