More than 2.3 million renters in NSW will be better off thanks to the latest round of changes to rental laws which will help create a fairer rental market, including ending ‘no-grounds’ evictions and making it easier to keep a pet.
The reforms will come into effect on 19 May 2025 following extensive consultation with renters, investors, animal welfare groups and industry representatives.
They follow changes which commenced in October last year which ensure renters cannot be charged for background checks and limit rent increases to once per year.
Further reforms, including stronger privacy protections for renters and the introduction of a portable rental bond scheme, are set to be introduced later in 2025.
The latest key changes include:
- Ending no-grounds evictions: Owners will now be required to provide a valid reason to end all lease types. Longer notice periods will apply for some leases, giving renters greater certainty and time to find a new home, while ensuring investors can still effectively manage their properties. Renters who find a new property after receiving an evictions notice will also have improved rights to end a lease early.
- New rules for pets in rental homes: Tenants will be able to apply to keep a pet in their rental home, with owners only able to refuse for specific reasons, such as the owner living at the property or failure to comply with local council laws. A standard application form and process has been developed to make the system clearer and more efficient for both renters and owners. Approval will be automatic if owners do not respond to pet applications within 21 days.
- Fee-free ways to pay rent: Renters will have access to convenient, free and electronic payment options such as direct bank transfer, preventing extra fees that can add to rental costs.
The NSW Rental Commissioner has engaged with more than 100 stakeholders including tenant advocates, owners and property providers, industry associations, animal welfare groups, and real estate agents, and also launched industry education to inform the rollout of these changes.
NSW Fair Trading continues to build awareness of the law changes, with a comprehensive engagement campaign already underway across online platforms which has seen visits to NSW Fair Trading’s rental information pages surge to more than 1.2 million page views between July and December last year.
Fair Trading officers have also hosted community information sessions attracting more than 4,000 registrations and recently hit the road to Dubbo to conduct information sessions about the upcoming changes, with further engagements planned for Western Sydney and the Sydney Royal Easter Show soon.
Backed by an $8.4 million investment, the Rental Taskforce within NSW Fair Trading will lead the way in ensuring compliance with the new laws.
People are encouraged to visit the NSW Fair Trading website for clear, up-to-date guidance on the new rental laws and their rights and obligations on the Renting a place to live webpage.
Premier Chris Minns said, “Today we are letting renters and owners know these major changes will begin in under two months’ time.
“By banning no grounds evictions, this will give renters much-needed housing security. This will let them make a house a home.
“This will make it fairer for millions of renters by bringing the rental market into the 21st century.
“More people than ever are renting, and they are renting for longer.
“With more than two million renters in NSW and over 600,000 investors, we have taken the time to get these major changes right.”
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said, “Whether it’s ending no-grounds evictions, making it easier to keep pets, or ensuring renters have fee-free ways to pay rent, these reforms deliver practical improvements that will benefit millions of people across NSW.
“These reforms are about creating a fairer, more balanced rental market that gives tenants greater security while ensuring owners have clear and transparent processes to follow.
“We’ve listened to renters, owners, and industry experts to shape these changes, and we’ll continue working closely with stakeholders to ensure the transition is smooth and well understood.”
