The changes to NSW’s rental laws have officially begun, bringing a fairer and more balanced market for both tenants and landlords. Here’s what you need to know about these important reforms.
Ban on extra fees at the start of a tenancy
As of 31 October 2024, renters and applicants can’t be charged extra fees when searching for, applying to, or starting a tenancy. This includes costs like background checks and tenancy agreement preparation.
Rent increases
From 31 October 2024, rent can only be increased once a year for all lease types. This rule, which previously applied only to periodic leases and fixed-term leases of two years or more, now covers all leases.
Ending a tenancy
Landlords must now provide a valid reason to end both periodic and fixed-term leases and include documentation, and provide a Termination Information Statement with the correct notice period.
Re-letting restrictions
Reletting restrictions now apply when a tenancy is terminated for specific reasons. If the termination reason is that the property is no longer being used as a rental, the restriction period is 12 months. A 6-month restriction applies if the reason is family moving in, a proposed sale, or demolition. For terminations due to significant repairs or renovations, a 4-week restriction period applies.
Easier pet approvals
Landlords must respond within 21 days or the pet request is automatically approved. Pet requests can only be refused for reasons, such as non-compliance with council laws or if landlord live on the premises. We are prohibited to request for higher rent or bond in exchange for allowing a pet.
Payment of rent
Landlords and agents must offer renters fee free payment options, such as bank transfer or, starting later in 2025, Centrepay. Electronic bank transfer is now a required payment option. Centrepay registration is only necessary if the renter selects that method. Renters and landlords may agree on other payment methods, but renters cannot be forced to use a specific service provider, like an app.
Water efficiency standards
To continue charging tenants for water usage, your property must meet the updated water efficiency standards. A compliance report must also be provided to tenants as proof.
Termination notice period
For periodic and fixed-term leases longer than 6 months, 90 days’ notice is required. For fixed-term agreements of 6 months or less, 60 days’ notice applies. Tenants cannot be asked to leave before the end of a fixed-term lease.