The rental landscape in NSW is changing in a big way. Following the passing of the Residential Tenancies Amendment Bill 2024 (NSW), a number of key reforms are already in place, with more to come into effect on 19 May 2025. If you’re a landlord, staying informed and prepared is essential to remaining compliant and managing your investment effectively.
Here’s a breakdown of the major changes and what they mean for you:
Already in Force
1. No Extra Fees at the Start of Tenancy
Landlords and agents can no longer charge tenants for background checks or lease preparation.
2. Rent Increases Limited to Once a Year
Rent can only be increased once every 12 months—this now applies to both fixed-term and periodic leases. The reform closes a loophole that previously allowed multiple increases during fixed-term agreements.
3. No More No-Grounds Terminations
Landlords must now provide a valid reason to terminate a lease. Whether the lease is fixed-term or periodic, “no-grounds” terminations are no longer allowed.
4. Updated Notice Periods
- Periodic leases: Still 90 days’ notice.
- Fixed-term leases:
- 60 days if the term is 6 months or less.
- 90 days if the term is longer than 6 months.
5. Prescribed Grounds for Termination Landlords may only terminate tenancies for specific, allowable reasons such as:
- Sale of the property with vacant possession.
- Major renovations, demolition or repairs.
- Landlord or family moving in.
- Tenant breaches (e.g. non-payment of rent).
- The property will no longer be rented for at least 12 months.
- Employment-based tenancies ending.
- Housing program eligibility changes.
Important: Re-letting “exclusion periods” now apply to certain termination reasons—changing your mind later could lead to penalties.
What’s Coming on 19 May 2025
1. Pets in Rentals: Easier Access for Tenants
- Tenants can apply for pet ownership using an approved form.
- Landlords must respond within 21 days or consent is automatic.
- Refusals must be based on specific grounds (e.g. property not suitable, too many animals, legal restrictions).
- Reasonable conditions (like carpet cleaning) are allowed. Unreasonable ones (like higher rent or bond) are not.
2. Rent Payment Methods
- Landlords must offer Centrepay as a payment option, along with a free electronic bank transfer.
- Self-managing landlords may need to engage a property manager or get an ABN to meet Centrepay requirements.
- Tenants cannot be charged for Centrepay fees—these are absorbed by the landlord.
What Landlords Should Do Now
- Understand the Law: Know what is reasonable and stay ahead of compliance.
- Be Documentation Ready: Keep detailed inspection reports and records—especially for lease breaches.
- Prepare Your Property for Pets: Durable flooring and fencing can help future-proof your property.
- Work Closely with Your Agent: Your property manager is key to helping you stay compliant and navigate applications, notices, and inspections.
- Review Your Landlord Insurance: Check that pet-related damage is covered and be aware of limits on garden or lawn cover.
- Adopt a Flexible Mindset: Pet-friendly properties are attractive to long-term, quality tenants.
Looking Ahead
NSW Fair Trading is developing a portable rental bonds scheme, expected later in 2025. This would make it easier for tenants to transfer their bond between properties—another big shift in the way rental housing operates in the state.
We’re Here to Help
Change can feel overwhelming, but landlords who act ethically and responsibly have very little to worry about. At First National, we’re staying across every update and are here to help you adjust, protect your investment, and move forward with confidence.
Have questions or need tailored advice? Let’s talk.