New Rental Laws Are Here: What Every NSW Property Owner Needs to Know

The NSW Government has recently announced changes to rental laws, aimed at creating a fairer and more balanced rental system for both landlords and tenants. Some of these changes already came into effect on 31 October 2024, with the rest rolling out on 19 May 2025. 

Here is a summary of the key changes:

No Extra Fees at the Start of a Tenancy
Landlords and agents can no longer charge rental applicants for background checks, tenancy agreements, or other fees when searching, applying for, or starting a lease. This means applicants can only be asked to pay the bond and rent in advance — helping to ensure a fairer and more transparent process.

Rent Increases Limited to Once Per Year
Rent increases are now restricted to once every 12 months across all leases, regardless of whether they are fixed-term or periodic agreements. Previously, this applied only to longer leases or periodic leases, but it now applies to every tenancy started after 31 October 2024. This new regulation helps provide greater stability for tenants and predictability for landlords.

New Rules for Ending a Tenancy
Landlords must have a valid reason to end a tenancy, whether it’s a fixed-term or periodic lease. Acceptable reasons include selling the property, major renovations, moving in a family member, demolition, or the tenant no longer qualifying for specific housing programs.

Termination notices must be accompanied by an official information statement and supporting documents (for example, proof of sale or renovation plans).

Re-letting Restrictions Introduced
If a tenancy is ended for specific reasons, you won’t be able to re-let the property immediately. Depending on the reason for ending the lease, you must wait between 4 weeks to 12 months before starting a new lease — for example:

• Selling the property: 6-month restriction
• Significant renovations: 4-week restriction
• Landlord or family member moving in: 6-month restriction

Penalties may apply if a new lease is entered without approval during the re-letting restriction period.

Longer Notice Periods for Ending Leases
Landlords must provide longer notice periods when ending a lease:

• Periodic leases: At least 90 days' notice
• Fixed-term leases of 6 months or less: At least 60 days' notice (and not before the end of the term)
• Fixed-term leases longer than 6 months: At least 90 days' notice (and not before the end of the term)

This gives tenants more time to find alternative housing and should be factored into planning around selling, renovating, or reoccupying your property.

New Pet Approval Rules
The new laws make it easier for tenants to keep pets in rental properties.

• Landlords must respond to pet requests within 21 days — otherwise, the request is automatically approved.
• A pet can only be refused for specific reasons (such as property unsuitability, breaches of local or strata rules, or risks of excessive damage).
• Once approved, a pet stays approved for the life of the animal, even if the landlord or managing agent changes.

You also cannot advertise a property as "no pets allowed," and strata by-laws banning all pets will no longer be enforceable.

Fairer Rent Payment Options
Landlords and agents must offer tenants rent payment options that don't carry additional fees — either via bank transfer or Centrepay.

Tenants cannot be forced to use a specific app or platform that incurs extra costs.

What This Means for Property Owners

Staying ahead of these changes is crucial to protecting your investment and maintaining a strong relationship with tenants. At Ballard Property, we are committed to keeping you informed about legislative updates that impact your property. Our experienced team is here to guide you through these changes, helping to ensure your investment stays compliant, desirable, and performing at its best.

If you would like a personalised review of your property in light of these changes — or have any questions — please don’t hesitate to get in touch with our team.

We are here to make owning an investment property easier.