The NSW Government has changed rental laws in NSW. This significant set of reforms effect how residential tenancies are managed by landlords and real estate agents across the state.
This email outlines your obligations under the new laws, provides access to the required forms and statements, and links to updated guidance. Summary of changes now in force
1. Landlords must provide a reason to end a tenancy
The reforms end the use of ‘no grounds’ terminations. A termination notice must now include:
- A specific ground for ending the tenancy
- The new Termination Information Statement
- Supporting documentation (for certain grounds)
Re-letting restrictions now apply after certain terminations, and minimum notice periods have been updated for both fixed-term and periodic leases.
Resources and guidance:
2. Pet requests – new approval process
Renters now have a formal process for requesting to keep a pet in a rental property.
Agents and landlords must:
- Provide a written response within 21 days of receiving the pet request
- Use the prescribed form (sent by the tenant) to respond to the request
- Only refuse a pet for prescribed reasons
- Not ask for increased rent or bond because of a pet
If no written response is given within 21 days, the request is automatically approved.
Landlords may still impose reasonable conditions on keeping the pet. Some reasonable conditions (for example, carpet cleaning) can only be used in certain circumstances.
Required form and guidance:
3. Rent payment methods – bank transfer must be offered
Landlords and agents must offer renters a way to pay rent by electronic bank transfer, without fees (other than those from the tenant’s own bank). Renters cannot be required to use a specific provider, such as a third-party app, to pay rent.
Offering Centrepay will also become a requirement later in 2025. Landlords and agents will not be required to register for Centrepay unless the tenant chooses to pay by that method. Renters can still use other payment methods if both parties agree.
Guidance:
Summary of changes in force from 31 October 2024
4. Rent increases limited to once per year
All residential tenancy agreements are now subject to a limit of one rent increase per 12-month period, regardless of the type or duration of the lease.
Guidance:
5. Fees at the start of a tenancy are prohibited
Landlords and agents cannot charge prospective renters fees before signing a tenancy agreement (other than a holding fee, rental bond, rent, or fee for registering the tenancy with NSW Land Registry Services).
Other costs are banned, including costs for:
- Background checks
- ID checks
- Preparing tenancy agreements
Guidance:
Additional resources
A dedicated information hub is available to help you understand and implement the changes:
Prescribed forms and information statements now in effect:
Please ensure all relevant staff and property owners are made aware of these changes and that your processes and forms are updated accordingly.
You can contact NSW Fair Trading on 13 32 20 or visit the NSW Fair Trading website.
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