NSW Residential Tenancy Laws: New South Wales

This article provides a comprehensive overview of the latest NSW residential tenancy laws and what tenants and landlords need to know.

Key Changes in NSW Residential Tenancy Laws

On 19 May 2025, new tenancy laws came into effect and the Residential Tenancy Act (NSW) 2010(the Act)was amended via the Residential Tenancies Amendment Act 2024(the Amendment Act).

The amendments were introduced as a result of the Government’s election commitments to make renting fairer and more transparent.  The reforms are aimed at strengthening tenant protections. Understanding the NSW residential tenancy laws is crucial for both landlords and tenants in New South Wales.

Some of the amendments to the Act are non-controversial and include:

1. Allowing tenants to pay rent via a fee-free method including bank transfer or Centrepay; and
2. Ensuring that tenants or prospective tenants are not charged extra costs while searching, applying or commencing a tenancy. Therefore, tenants cannot be required to pay for background checks or fees for preparing a tenancy agreement.

Other reforms introduced by the Amendment Act include:

Rent Increases

Rent can now only be increased once per year, across all leases, and cannot be increased within the first 12 months of a new tenancy. The 60 days written notice period remains.

Ending a Tenancy

Landlords must now provide a reason to end a tenancy.  This applies to both periodic leases and leases at the end of the fixed terms.

A landlord is able to terminate a tenancy if a tenant is at fault and there is a breach of lease or non-payment of rent.  This remains the same.

However, the Act now provides reasons for which the landlord can end a tenancy, and a landlord must submit documentation and landlord statements in support of any termination notice served on a tenant.

Reasons include:

1. The property is being sold or offered for sale with vacant possession;
2. The landlord wishes to undertake significant renovations or repairs to the property;
3. The landlord wants to demolish the property;
4. The property will no longer be used as a residential premises and will instead be used as a business; or
5. The landlord or the landlord’s family intend to move into the property.

The Regulations outline what supporting documentation must be included when issuing a Termination Notice.  For example, if a landlord wishes to offer the property for sale, it must provide the tenant with a copy of the agency agreement in relation to the property.  Alternatively, if a landlord intends on moving into the property it must provide the tenant with a statement to that effect.

It is important to note that there are also re-lettingrestrictions that now apply.  This means that if a landlord terminates a tenancy based on one of the reasons above, the landlord cannot lease the property again for a set period of time (tenancy exclusion period).  The tenancy exclusion period differs for each reason, for example, if the landlord decides to reside at the premises, the landlord cannot re-let the premises for a period of 6 months.

This impacts any agent listing a property for rent and it is important for an agent to obtain clear instructions from the landlord in relation to the previous tenancy and how that tenancy ended.

The agent will only be found to have not committed an offence in this regard, if the agent did not know, and could not reasonably have found out, that the premises were subject to a tenancy exclusion period.

Therefore, it is imperative that agents ensure that they are informed as to how a tenancy ended.

Registering reasons for evictions

From 1 July 2025, agents and landlords will have to register the reason for all evictions with the NSW government.

The agent and /or landlord will have to advise the reason why the tenant was evicted and the evidence used in support of the termination notice.

These reasons may be checked, and significant penalties apply if the reasons provided in relation to the Termination Notice were not genuine.

There is a significant onus on the landlord and agent in this regard.

Keeping a Pet at the Property

It is now easier for tenants to keep pets at a rental property, and a tenant can obtain the landlord’s consent via a prescribed form.

The landlord has 21 days to respond to any request submitted by the tenant via the prescribed form and can only refuse a request on certain grounds including:

1. If there are more than four animals at the property;
2. If the property is unsuitable for the animal;
3. If it will cause damage to the property (more than the bond could repair);
4. If keeping the animal would break las such as local council rules;
5. If the tenant did not agree to one of the landlord’s reasonable conditions for keeping the animal.

Further Reforms

In addition to the above, there are further reforms anticipated in this space with the Residential Tenancies Amendment (Protection of Personal Information) Bill 2025 being tabled in Parliament.

This Bill aims to further amend the Act by:

1. Requiring the landlord or the landlord’s agent to make disclosures in relation to exclusive supply networks, the use of digitally generated or altered images and other prescribed information when advertising residential premises for rent;
2. To require a landlord or the landlord’s agent to disclose the existence of an exclusive supply network for residential premises prior to entering into a residential tenancy agreement for the premises;
3. To require a landlord or the landlord’s agent to give a rent record to a tenant when a tenancy terminates;
4. To allow a tenant who applies for consent to keep a pet within 7 days after entering into a residential tenancy agreement to keep the pet until the landlord gives a written response; and
5. Providing further additional measures to protect tenant’s personal information.

It is clear that this is an ever-changing area and one in which landlord’s and property managers should keep themselves informed of.  The impact and potential fines applying to property managers and landlords as a result of non-compliance with these reforms are significant.

For more detailed legal info, visit the NSW Fair Trading rental guidelines. Explore our intellectual property and trade mark legal services here.