Effective from 19 May 2025
Significant reforms to New South Wales’ residential tenancy laws have now commenced, aimed at providing greater protections for tenants and clearer obligations for landlords. These changes follow the passing of the Residential Tenancies Amendment Act 2024 (NSW) and accompanying regulations.
At Morgan + English, we’re here to support landlords, tenants, and property managers in understanding and navigating these reforms. Below, we outline the key changes to ensure you’re across your rights and responsibilities under the updated framework.
- End of ‘No Grounds’ Evictions
Landlords must now provide a valid reason to terminate either fixed-term or periodic leases. Permissible grounds include the sale of the property, major renovations, or the landlord (or their family) moving in.
- Extended Notice Periods
Tenants must be given more time to vacate:
- Periodic leases: At least 90 days’ notice
- Fixed-term leases: 60 days if the lease is 6 months or less. 90 days if the lease is longer than 6 months
- Re-letting Restrictions
If a tenancy ends due to specific reason, such as sale, major repairs, or landlord occupation, landlords are restricted from re-letting the property for a set period (ranging from 4 weeks to 12 months), unless they obtain approval from NSW Fair Trading.
- Pet-Friendly Reforms
Tenants now have the right to request to keep a pet in their home, and landlords must respond within 21 days. If no response is given, consent is deemed granted. Refusals must be based on valid reasons, such as property suitability or likely damage beyond the bond.
- Rent Increase Cap
Rent increases are now limited to once every 12 months across all lease types, including new and renewed agreements. This rule also applies to leases signed before the reform came into effect, subject to certain exceptions.
- Ban on Upfront Fees
Tenants and applicants cannot be charged additional fees such as background check costs or document preparation fees at the start of a lease.
- Rent Payment Flexibility
Tenants must be given the option to pay rent via bank transfer without incurring additional fees. In future, Centrepay will also be required as a payment option. Use of third-party rent payment apps cannot be mandated.
These reforms are part of the NSW Government’s broader efforts to create a fairer, more stable rental market. NSW Fair Trading has established a dedicated Rental Taskforce to enforce compliance and handle breaches.
For more information or advice about how these changes may affect your rights or obligations as a landlord or tenant, get in touch with Wayne Riggien (wayne@morganenglish.com.au) and our Land + Home + Water team at Morgan + English.
