New rental reforms in NSW: What renters need to know

After years of advocacy, the NSW Government has passed the Residential Tenancies Amendment Act 2024, bringing changes that strengthen renters’ rights across the state. These reforms mark a major step forward for tenants and will roll out in stages, with key provisions taking effect on 19 May 2025.

What has changed?

The new laws have:

• Ended ‘no grounds’ evictions.
• Made it easier to keep pets in rental homes.
• Limited rent increases to once every 12 months for most tenancy agreements.
• Has introduced fairer rental payment options.

What’s already in effect?

While not all changes have commenced, some important reforms are already in place:

• Rent increase cap: For most agreements, landlords can now only raise the rent once every 12 months.
• No background check fees: Renters can no longer be asked to pay for background checks during the application process.
• Rental Bond Board representation: The NSW Rental Commissioner is now a member of the Board.
• Water efficiency: All rental property toilets must be dual flush to meet water-saving standards.

What changed on 19 May 2025?

The following reforms came into effect on this date:

• Stronger protection against unfair evictions.
• Greater clarity and consistency around pet approvals.
• Fee-free rental payment options.

For further information visit the NSW Fair Trading website for clear, up-to-date guidance on the new rental laws and their rights and obligations.

ID 7925746 © Darren Fisher | Dreamstime.com