NSW Rental Reforms 2025: What Landlords and Tenants Need to Know
NSW Rental Reforms 2025: What Landlords and Tenants Need to Know
As of 19 May 2025, big changes are coming to the NSW rental market, and they’ll impact landlords and tenants alike.
With the Residential Tenancies Act being amended, how properties are managed, leased, and lived in is evolving. At Laing+Simmons, we’re here to break down what’s changing, why it matters, and how we’ll support you as a tenant and a landlord.
1. No More ‘No Grounds’ Evictions
From 19 May 2025, landlords will need to provide a valid reason to end a tenancy. The days of ending a lease without cause are over.
Acceptable reasons now include:
- Selling the property
- The landlord or a family member moving in (minimum 6-month occupancy)
- Major renovations that make the home uninhabitable during the works
- A breach of lease terms by the tenant
Landlords must also follow new notice periods:
- 60 days’ notice if the lease is 6 months or less
- 90 days’ notice if the lease is longer than 6 months
These changes aim to provide tenants with more housing security while allowing landlords to manage their property lawfully.
2. New Pet Ownership Rules
Pets in rentals have long been a grey area. The new laws bring more clarity. Tenants can now apply in writing to keep a pet, and landlords must respond within 21 days, or the pet is automatically approved.
Landlords can only say no if there’s a valid reason, such as:
- Property being unsuitable (e.g., no fencing)
- By-laws or council regulations prohibiting pets
- The owner also lives at the property
Blanket bans and additional pet-related fees (like extra rent or bond) are not permitted.
3. Rent Increases Limited to Once Per Year
A key change for landlords and tenants is that rent can only be increased once every 12 months, regardless of lease type. This ensures predictability for tenants and simplifies the process for landlords.
A minimum 60-day written notice is still required for any rent increase.
4. More Options for Rent Payments
All landlords must now offer at least one fee-free method for paying rent, such as direct bank transfer or Centrepay. Tenants can still choose other methods – like apps or platforms – but only if they agree to any associated costs.
5. Banning Extra Tenancy Setup Fees
To reduce the financial burden on tenants, certain charges are now prohibited:
- Application fees
- Lease preparation fees
- Charges for background checks
6. Upgraded Minimum Standards
From 19 May 2025, rental properties in NSW must meet stricter minimum standards to be considered fit for habitation. These include:
- Adequate lighting and ventilation
- Working plumbing and drainage
- Hot and cold running water
- Privacy and proper bathroom facilities
- Safe electrical supply
- Structurally sound conditions (weatherproof and durable)
If a property doesn’t meet these, it cannot be leased.
Already, from 23 March 2025, properties must have dual-flush toilets with a 3-star WELS rating to continue charging tenants for water usage.
What Should You Do Now?
Whether you’re a landlord or a tenant, it’s important to understand your rights and responsibilities under the new laws.
At Laing+Simmons, we’re already reviewing properties across our network to ensure compliance, update lease documentation, and guide landlords through any required upgrades.
If you’d like to chat through what these reforms mean for your property or tenancy, please reach out to your property manager – we’re here to help.
Stay informed. Stay supported. Stay compliant.
Contact your Laing+Simmons property manager for personalised advice.
