Changes to rental laws starting 19 May 2025
- Posted By Nikki Montaser
Major changes to rental laws in NSW start on Monday 19 May 2025. These changes are part of the NSW Government commitment to deliver a fairer, more stable rental market.
The reforms were developed following extensive public consultation with renters, landlords, real estate professionals and industry bodies.
Key changes starting on Monday 19 May 2025
Ending a tenancy
Landlords must provide a valid reason to end a tenancy. This ends ‘no-grounds’ terminations for renters on both fixed-term and periodic leases.
Supporting documents are required in some cases, and penalties apply for terminations that are not genuine. Landlords will need to provide tenants with a Termination Information Statement, that will be made available prior to the changes starting.
From 1 July 2025, NSW Fair Trading will be collecting data about the reason a tenancy ends through Rental Bonds Online.
Notice periods for fixed-term leases
Renters on a fixed-term lease must be given more notice when a tenancy is ending: at least 60 days for leases of 6 months or less, and 90 days for leases longer than 6 months.
Re-letting restrictions
New leases cannot be entered into for a period of time after ending a tenancy for certain reasons. This applies where the landlord has said they need the property back for something else, for example, sale or renovations.
An application can be made to NSW Fair Trading to relet the property if there is a change in the landlord’s circumstances which is out of their control. Supporting documents need to be provided.
Keeping a pet
Renters can request to keep a pet. Landlords can only refuse for specific reasons and must respond within 21 days, or the pet is automatically approved. A new Pet Application Form and guidance will be available from 19 May.
Fee free ways to pay rent
Landlords and agents must offer renters a fee-free, electronic method to pay rent, including bank transfer or BPay. Tenants cannot be required to use a particular service provider to pay rent.
Later in 2025, Centrepay will also need to be offered. Landlords will not be required to register for Centrepay unless the tenant has chosen that payment method.
Advertising
Landlords and agents cannot advertise in rental listings that no pets are allowed in a rental property.
Changes that have already started (since 31 October 2024)
Fees before a tenancy
Prospective renters must not be charged fees, such as background checks, identity checks or for the preparation of tenancy agreements.
Find out more on background checks and other fees.
Rent increases
Rent can only be increased once every 12 months for all lease types, including when a lease is being renewed or replaced.
An exception applies if the change is due to an increase in a tenant’s social housing rent rebate.
Find out more on rent increases.
The Residential Tenancies Amendment Regulation 2025, which supports the upcoming changes, is now available online. You can also view the Residential Tenancies Amendment Act 2024 online.
More information about the changes is available on OFT website.
Details, such as the supporting documents required to end a tenancy, pet request processes, and how to apply for a change of circumstances to re-let a property, will be available before the new laws start on 19 May 2025.
Please get in touch with us if you have any questions on how these new laws are going to affect you.