Understanding the 2025 Rental Reforms in NSW
On 19 May 2025, the NSW Government officially implemented wide-ranging reforms to rental laws, marking a transformative moment in the rights of tenants and obligations of landlords across New South Wales. These reforms follow years of public debate, rising rental demand, and increasing cost-of-living pressures that have made long-term renting the norm for many Australians.
In Premier Chris Minns’ words, the changes aim to “bring the rental market into the 21st century”. Whether you’re renting a home in Sydney or managing investment property in regional NSW, these changes directly affect your legal position—and knowing your rights and responsibilities is now more important than ever.
End of No-Grounds Evictions
Previously, landlords in NSW could end a lease without providing a reason. This is no longer the case. Under the new laws, landlords must now give a specific, lawful reason for terminating a tenancy. The accepted grounds include:
The landlord intends to sell the property
Major renovations are required that make continued occupation impractical
The landlord or their family intends to move into the property
These grounds must be backed with documentation such as a signed sales agreement or a sworn statutory declaration. NSW Fair Trading has also introduced a ban on re-letting the property for up to 12 months after certain terminations to prevent system abuse.
Longer Notice Periods for Tenants
The reforms have increased notice periods, giving tenants more time to prepare for relocation. For example:
90 days’ notice is required for most lease terminations
30 days for lease expiry where no new lease is being offered
This measure aims to reduce the stress and instability renters often experience when being asked to vacate with little warning. If you receive a termination notice and feel it may be unlawful, speak to Jameson Law’s tenancy lawyers for urgent advice.
Major Pet Law Reforms
Tenants can now enjoy more certainty around keeping pets in rental properties. Key changes include:
Landlords can no longer advertise properties as “no pets”
Pet requests must receive a written response within 21 days
If no response is given, the pet is automatically approved
Approvals cannot be revoked while the pet lives on the premises
Acceptable reasons for refusal are now narrowly defined—primarily health risks or danger to others. According to RSPCA NSW, this represents a major step forward for animal welfare and tenant rights in Australia.
Rent Increases Limited to Once Per Year
Under the previous system, tenants could face multiple rent hikes annually depending on lease type. As of May 2025, rent increases are now limited to once every 12 months—regardless of whether a tenant is on a fixed or periodic lease.
This brings NSW in line with best practices across Australia and helps renters plan ahead without unexpected financial strain. Rent disputes can be escalated to the NSW Civil and Administrative Tribunal (NCAT) where necessary.
Mandatory Fee-Free Payment Options
Landlords are now legally required to provide a fee-free method of rent payment—usually a bank transfer. This is to ensure tenants are not burdened by hidden transaction fees or required to use third-party rent payment apps that charge commissions.
All rental agreements must clearly list the payment methods available and confirm that at least one method is completely free of charge. You can view a model agreement with these updates via NSW Fair Trading’s standard tenancy form.
NSW Rental Taskforce Established
To oversee compliance and crack down on rogue practices, a new NSW Rental Taskforce has been established within NSW Fair Trading. This taskforce has been given powers to:
Investigate reports of unlawful evictions or refusals
Issue fines and penalties to non-compliant landlords
Educate both tenants and property managers on the new laws
This initiative is designed to strengthen enforcement and improve trust in the housing market. Repeat offenders may face tribunal proceedings, license suspensions, or court orders depending on the severity of the breach.
How the Changes Affect Tenants
For tenants, these reforms provide stronger protection against eviction, clearer rights regarding pets, and more predictable rental costs. According to data from the Australian Bureau of Statistics, over 35% of NSW households now rent—making these protections relevant to millions of residents.
Tenants should be aware of their right to:
Challenge evictions that do not meet the new lawful grounds
Request pet ownership in writing and escalate silence as approval
Receive a clear explanation for rent increases
Lodge complaints with Fair Trading or NCAT when treated unfairly
If your landlord fails to respond to a request or attempts to evict you improperly, seek advice from Jameson Law’s legal team immediately. Legal support is crucial for resolving disputes fairly and quickly.
How the Changes Affect Landlords
For landlords, the 2025 reforms represent a substantial shift in how tenancy is managed. While these laws aim to promote fairness, they also introduce new administrative and legal obligations that landlords must now meet—or face financial penalties.
Required Documentation for Ending a Tenancy
If you plan to end a lease, you must now provide legally valid documentation that supports your reason. For example:
Selling the property? A signed contract of sale must be provided.
Planning major renovations? You’ll need council approvals or contractor quotes.
Moving in? A statutory declaration is now required.
Failure to comply may result in a rejected eviction notice and a formal complaint being lodged with NSW Fair Trading. Repeat breaches may escalate to the NSW Civil and Administrative Tribunal.
Stricter Rules Around Pets
Landlords can no longer blanket-ban pets. Instead, you must consider requests on a case-by-case basis and reply in writing within 21 days. Grounds for refusal include:
Health risks (e.g., allergies for other residents)
Threats to safety or significant damage risk
However, cosmetic or subjective reasons—like noise concerns or dislike of animals—are no longer acceptable. Legal advice is recommended if you’re unsure whether your reason is valid. Speak to a tenancy lawyer at Jameson Law before issuing a refusal.
Impact on Rent Reviews and Lease Management
The limit on rent increases (once every 12 months) applies to all tenancy types. This means landlords must plan income expectations carefully and give proper written notice of increases—usually 60 days in advance, under the Residential Tenancies Regulation 2019 (NSW).
If you charge excessive rent or increase rent improperly, tenants can dispute the amount at NCAT. This places greater pressure on landlords to remain within market rate and justify increases with comparable evidence.
Case Studies: Real-World Scenarios
Case 1: Selling a Tenanted Property
Linda, a landlord in Parramatta, decided to sell her investment property. She issued a notice of termination to her tenant, citing her intent to sell. Under the new law, she was required to provide a signed agency agreement showing the property had been listed for sale. Without this, her notice would have been invalid under NSW tenancy termination laws.
The process took longer than before, but both parties were protected and fully informed of their rights, reducing stress and the risk of legal disputes.
Case 2: Tenant with a Pet Request
Jared, a tenant in Newcastle, applied to keep a rescue dog. He received no reply from his landlord within 21 days. Under the new rules, his request was deemed approved. When the landlord later attempted to remove the pet, Jared was able to file a complaint. With support from Tenants’ Union of NSW, he secured a binding agreement that allowed the dog to remain.
This case highlights the importance of landlord responsiveness and understanding the automatic approval clause now embedded in law.
What Happens if You Break the New Rules?
The Rental Taskforce, part of NSW Fair Trading, has begun auditing lease documents and investigating complaints. Failure to comply with any of the reforms may result in:
Fines exceeding $5,000 for landlords and agents
Tribunal hearings at NCAT
Listing on NSW’s public non-compliance registry
Landlords are encouraged to review leases, update internal processes, and consult with a property lawyer to stay compliant. You can request a lease audit from the experts at Jameson Law to ensure you’re meeting all obligations.
Tips for Staying Compliant
Use the latest version of the standard lease agreement
Maintain written records of all notices, requests, and approvals
Set calendar reminders for annual rent reviews
Consider property management services to help navigate changes
Get Help Navigating the Reforms
If you’re feeling overwhelmed by these changes, you’re not alone. Thousands of landlords and tenants are still adjusting. That’s why it’s critical to seek legal guidance tailored to your specific situation. At Jameson Law, we provide expert advice to ensure your rights are protected and your responsibilities fulfilled under the 2025 NSW rental reform framework.
We help clients:
Draft and review new leases
Issue compliant notices
Respond to NCAT applications
Navigate pet requests and property sales
Call us on 1800 324 324 or visit JamesonLaw.com.au to book a consultation today.
