Important Rental Law Changes in NSW: What Landlords and Tenants Need to Know

The NSW Government has recently introduced significant changes to residential tenancy laws, which impact landlords, tenants, and agents alike.

Here’s a summary of what you need to know:

1. ‘No Grounds’ Terminations Are No Longer Allowed

Landlords must now provide a valid reason when ending a tenancy. Termination notices must include:

• A specific ground for ending the tenancy

• The new Termination Information Statement

• Supporting documentation for certain termination reasons

There are also new re-letting restrictions following certain types of termination, and the notice periods for ending both fixed-term and periodic leases have been updated.

Useful links:

• Landlord ending a tenancy

• Minimum notice periods

• Termination Information Statement (form)

  
  

2. New Pet Request Approval Process

Tenants now have a formal right to request permission to keep a pet at a rental property. As agents or landlords, we must:

• Respond in writing within 21 days

• Use the prescribed response form

• Only refuse a request based on prescribed reasons

• Not charge extra rent or bond for having a pet

If no response is given within 21 days, the pet request is automatically approved. Landlords can still impose reasonable conditions, such as carpet cleaning, under certain circumstances.

Resources:

• Pet request response form

• Pets in rentals – guidance

  
  

3. Renters Must Be Offered Bank Transfer as a Payment Option

Landlords and agents are now required to offer tenants the option to pay rent via electronic bank transfer, without additional charges (except those from the tenant’s bank).

Tenants cannot be forced to use third-party payment platforms, and from late 2025, offering Centrepay will also become mandatory (but only if the tenant chooses it).

More info:

• How and when to pay rent

4. Rent Increases Limited to Once Per Year

All rental agreements—regardless of type or length—will be subject to a maximum of one rent increase every 12 months.

Learn more:

• When and how rent can be increased

  
  

5. No Fees Before Signing a Tenancy Agreement

Upfront charges to prospective tenants (aside from a holding fee, bond, rent, or tenancy registration fee) will be prohibited. This includes:

• Background check fees

• ID check costs

• Agreement preparation fees

Details here:

• Fees at the start of a tenancy