Summary of Changes to NSW Rental Laws – What You Need to Know

On 24 October 2024, the NSW Parliament passed the Residential Tenancies Amendment Act 2024, introducing significant reforms to rental laws aimed at improving stability for renters and certainty for landlords. While some changes have already taken effect, most are expected to roll out in early 2025.

Key Changes to Rental Laws:

• Ending ‘No Grounds’ Terminations: Landlords will now need valid reasons to end a tenancy.
• Easier Pet Ownership: Renters can request to keep pets, with automatic approval if landlords don’t respond within 21 days.
• Limiting Rent Increases: Rent increases are capped at once per year for all leases.
• No Fees for Background Checks: Renters cannot be charged for background checks when applying for properties.
• Flexible Rent Payment Options: Renters can pay via bank transfer or Centrepay, without mandatory use of fee-based apps.

Implementation Timeline:

• From 31 October 2024:
  • Annual rent increase limit.
  • No fees for background checks.
• First Half of 2025:
  • Changes requiring reasons to end leases.
  • Easier processes for keeping pets.
  • Extended notice periods for fixed-term leases.
  • Adjustments to rent payment methods.

A dedicated Rental Taskforce will oversee the implementation and enforcement of these changes, ensuring compliance across the sector.

Stay Informed:

For further details and regular updates, sign up for the NSW Fair Trading Property Matters newsletter and visit the official NSW Government website.

Read the full article about the rental law changes here.

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