March 2025 – Liz Cooper

NSW Rental Laws: Key Changes You Need to Know

The Minns Labor Government have recently passed the most significant updates to New South Wales’ rental laws in over a decade. These changes are now in effect, reshaping the landscape for both tenants and landlords. The key changes are:

Enhanced Tenant Security

A major shift in tenant protection comes with the elimination of ‘no grounds’ evictions. This significantly increases tenant security as landlords will now need valid reasons to terminate a tenancy. Examples include property renovations, landlord or family moving in, or sale of the property.

Easier Pet Ownership

For many renters, pets are part of the family. Tenants can now request to keep pets, and landlords must provide valid reasons for refusal. If a landlord doesn’t respond to a request within 21 days, the request is automatically approved. Tenants can also appeal refusals to the NSW Civil and Administrative Tribunal.

Predictable Rent Increases

Rent increases are now limited to once per year, regardless of the lease type. This applies to both fixed-term and periodic leases.

Fairer Application Process

Landlords and agents can no longer charge prospective tenants fees for background checks.

Convenient Payment Options

Landlords must offer fee-free electronic payment options, such as bank transfers.

Streamlined Notice Periods for Fixed-term Agreements

Notice periods for ending fixed-term agreements are increased:

  • 60 days for agreements of six months or less;
  • 90 days for agreements over six months; and
  • there is no change to notice periods for those on periodic agreements.

New Water Efficiency Standards

Landlords must ensure their property meets new water efficiency requirements if they wish to continue to charge tenants for water usage. All toilets in rental properties must be dual flush with a minimum three-star rating under the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme.

If you have any questions about your rights as a tenant or landlord, contact Harris Freidman Lawyers for expert legal advice.