Changes To Rental Laws In NSW

The New South Wales (NSW) government has introduced significant changes to rental laws, aimed at providing greater security for tenants while ensuring fairness for landlords. These reforms, passed by the NSW Parliament on 24 October 2024, will roll out in stages, with some already in effect and others expected in early 2025.

Key Changes in Rental Laws

1. End of ‘No Grounds’ Evictions

One of the most significant changes is the removal of ‘no grounds’ evictions. Previously, landlords could terminate a tenancy without providing a reason, leaving renters uncertain about their housing stability. Under the new laws, landlords must provide a valid reason, such as selling the property or needing it for personal use. This change aims to offer renters more security and stability.

2. Simplified Pet Ownership for Renters

Renters will now find it easier to keep pets in their homes. While landlords still have the right to refuse pet requests, they must provide a valid reason for doing so. If a tenant believes the refusal is unreasonable, they can appeal the decision through the NSW Civil and Administrative Tribunal. This change is designed to make pet ownership more accessible for renters.

3. Cap on Rent Increases

To address affordability concerns, rent increases are now limited to once per year for all leases, regardless of whether they are fixed-term or periodic agreements. This reform helps tenants manage their housing costs more predictably while still allowing landlords to adjust rent at reasonable intervals.

4. Ban on Extra Fees at the Start of a Tenancy

Additional fees, such as charges for background checks and tenancy agreement preparation, are now prohibited. These upfront costs often placed unnecessary financial burdens on tenants. The reform ensures a fairer and more transparent leasing process.

5. Access to Free Payment Methods

Tenants must now be provided with at least one free payment method for rent, such as bank transfer or Centrepay. This prevents renters from incurring additional fees when paying rent through certain platforms or services.

Implementation Timeline

• From 31 October 2024:

  • Ban on additional upfront fees.

  • Cap on rent increases (once per year).

• Early 2025 (Expected):
  
  • ‘No grounds’ evictions removed, requiring landlords to provide a valid reason for lease termination.
  • Clearer guidelines on pet ownership rights for renters.

What These Changes Mean for Renters and Landlords

These reforms are designed to create a fairer rental market by addressing housing affordability, improving security for tenants, and ensuring that rental agreements remain transparent and reasonable. Renters will benefit from greater housing stability, while landlords still retain the ability to manage their properties effectively within the new legal framework.

For more details on these changes and their impact, visit the NSW Fair Trading website.

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