Written by Changes to NSW Rental Laws under the Minns Government are to be implemented in the first half of 2025. The most significant reform outlines that rent increases will be capped at once per year, a limit that previously only applied to periodic or fixed-term leases of 2+ years. Further, landlords will need a valid reason to end a tenancy, ranging from a breach of lease or non-payment of rent, to damage to the property and a requirement of ‘vacant possession’ in the lease. This is significant as an end to no-ground evictions, giving both renters and owners clarity. Notice periods for leases ending will also increase from 30 days to 60 or 90 days, depending on whether the lease is valid for more than 6 months. Additionally, pet requests of renters must be responded to within 21 days, otherwise they will be automatically approved. Landlords may deny requests with valid reasons, including the property being unsuitable for animals, or the requested pet being likely to cause damage that is outside the scope of the provided bond. Landlords cannot ask for a rent or bond increase as a condition for allowing the pet. Finally, the payment methods for rent are changing to include electronic options without the extra fees – including bank transfers and the Commonwealth Government Centrepay.
These changes follow detailed discussions with renter advocates, and 16,000 submissions to the ‘Have Your Say’ public consultation process. They will complement key initiatives of the Rental Taskforce within NSW Fair Trading and the launch of the free online Rent Check website.