The NSW rental landscape has evolved with a series of reforms aimed at improving transparency, stability, and fairness in rental agreements. As property managers, our role is to help both landlords and tenants understand these changes and navigate their responsibilities with confidence.
Here’s a clear breakdown of what the new rules mean for everyone involved.
Key Updates for Tenants
1. Greater Security With the End of “No-Grounds” Evictions
Tenants can no longer be asked to vacate without a valid reason. Landlords must provide a recognised ground for termination, such as property sale, renovations, breaches, or owner occupation.
What this means for tenants:
2. A Fairer Process for keeping pets
From May 2025, tenants can apply to keep a pet and landlords will have 21 days to respond. If no response is given, the request is automatically approved.
Tenant benefits:
3. Rent Increases Limited to Once Every 12 Months
Regardless of the lease type, rent can only be increased once per year, giving tenants greater control over their budgeting.
4. No more upfront application or database fees
Tenants can no longer be charged for:
This reduces barriers to securing a home and makes the rental process more accessible.
5. More flexibility in rent payment methods
Landlords must now accept bank transfers, and from 2026, eligible tenants must also have the option to pay via Centrepay.
Key Updates for Landlords
1. Stricter Requirements for Ending Tenancies
Landlords must now provide evidence when ending a tenancy for reasons such as major renovations or family occupation. This includes providing supporting documentation and meeting revised notice periods.
Why this matters:
2. Pet applications must follow the new process
Landlords can still refuse pets, but only on specific, reasonable grounds — not through a blanket “no pets” rule.
3. Limit of one rent increase every 12 months
This applies to both fixed and periodic leases, meaning landlords must plan rent reviews more carefully.
4. Updated obligations at tenancy end
From July 2025, landlords and agents will be required to complete a short survey through Rental Bonds Online when a tenancy ends. This helps NSW Fair Trading collect accurate data on why tenancies conclude.
5. No upfront fees to tenants
Landlords can no longer pass on costs associated with preparing agreements or running checks — these now sit with the managing party.
These reforms mark a shift toward a more transparent, stable, and balanced rental market in NSW. With clear guidance and strong processes, landlords, tenants, and property managers can all benefit from a more predictable and fair rental experience.
Our team is here to help you navigate every aspect of the new legislation — from lease reviews and compliance checks to ongoing tenancy management.
