Important Information Regarding New Rental Laws NSW

Important Information Regarding New Rental Laws NSW

As of 19 May 2025, significant changes to rental laws in New South Wales have come into effect. These changes include:

•             Capped Rent Increases

•             Restrictions on No-Ground Terminations

•             Prescribed Grounds Now Required to End a Tenancy

•             New Pet Reforms

We have provided further information below to help you understand these changes. If you have any questions or would like to discuss how these changes may affect you, please don’t hesitate to contact our office on 8038 1200.

Significant Reforms in NSW Rental Laws

The NSW Residential Tenancies Amendment Act 2024, effective from 19 May 2025, introduces substantial changes aimed at enhancing clarity, structure, and fairness in rental agreements for both tenants and landlords.

For Tenants: Enhanced Clarity and Protection

Tenants now benefit from increased transparency and security:

• Valid Termination Reasons Required: Landlords must provide a legitimate reason to end a tenancy; ‘no-grounds’ terminations are no longer permitted.
• Extended Notice Periods:
  • Sale of Property: 60 days’ notice for leases under six months; 90 days for longer or periodic leases.
  • Major Renovations, Demolition, or Change of Use: 60 to 90 days’ notice, depending on the lease type.
  • Landlord or Family Moving In: 60 to 90 days’ notice required.
• Re-letting Restrictions: After certain terminations, landlords cannot re-let the property immediately. For instance, if a tenancy ends due to renovations, the property cannot be re-leased for at least four weeks.
• Pet Ownership: Tenants can request to keep a pet, and landlords must respond within 21 days. If they do not respond, consent is automatically granted. Landlords can only refuse for specific reasons, such as property conditions or local council restrictions.

For Landlords: Structured and Transparent Processes

The new legislation provides landlords with clear guidelines:

• Defined Termination Grounds: Landlords must have a valid reason to end a tenancy, such as selling the property, major renovations, or moving in themselves.
• Specified Notice Periods:
  • Sale of Property: 60 days’ notice for leases under six months; 90 days for longer or periodic leases.
  • Major Renovations or Demolition: 60 to 90 days’ notice, depending on the lease type.
  • Landlord or Family Moving In: 60 to 90 days’ notice required.
• Re-letting Restrictions: After ending a tenancy for certain reasons, there are mandatory exclusion periods before the property can be re-leased. For example, a four-week exclusion applies after renovations.
• Pet Approval Process: Landlords must respond to pet requests within 21 days, providing valid reasons for any refusal. Acceptable grounds include potential property damage, unsuitable property conditions, or local council restrictions.

Navigating the Changes Together

The 2025 amendments represent the most significant changes to NSW rental laws since 2010. Understanding your rights and responsibilities is crucial.

At One Agency Hazlett & Poole, our property experts are well-versed in these updates. We’ve already guided numerous clients through these reforms with confidence and fairness. If you’re uncertain about how these changes affect your lease, future plans, or current property, we’re here to help.

---

 ^{Please note: This newsletter is for informational purposes only and does not constitute legal advice. For specific legal guidance, consult a qualified professional.}