What tenants and landlords need to know
Significant changes to rental laws came into effect in New South Wales on 19 May 2025. These reforms aim to improve fairness, transparency and security in the rental market.
Both tenants and landlords need to understand the new rules to ensure they are meeting their rights and obligations.
Ending ‘no-grounds’ evictions
One of the most important reforms is the end of no-grounds evictions. Landlords can no longer terminate a tenancy without giving a valid reason. Acceptable grounds include tenant breaches, selling the property, major renovations, demolition, or moving in themselves. This change provides greater stability for tenants while still giving landlords flexibility when genuine circumstances apply.
Pet ownership requests
Tenants now have a clearer pathway to keep pets. If a tenant requests to keep a pet, landlords must respond within 21 days. If they fail to reply, the request is automatically approved. Landlords can only refuse in specific situations, such as council restrictions or where the animal could cause significant damage.
Rent payments and fees
Another important reform is around rent payments. Landlords must offer at least one fee-free method of payment, such as direct bank transfer or Centrepay. Tenants can no longer be forced to use third-party apps that charge extra fees. Other upfront charges, such as application or background check fees, are also restricted.
Notice periods and re-letting restrictions
Landlords are now required to give 60 days’ notice to end a fixed-term lease of six months or less, and 90 days’ notice for leases longer than six months. If a tenancy ends because of renovations or sale, restrictions apply to when the property can be re-listed for rent. From 1 July 2025, NSW Fair Trading will begin collecting data on tenancy terminations to improve transparency.
Privacy, advertising and rent bidding
The reforms also tackle issues of tenant privacy and advertising practices. Landlords and agents face penalties for deceptive rental listings, such as using digitally altered photos to hide property defects. There are also new limits on collecting unnecessary personal data from tenants, with heavy fines for breaches.
Rent bidding has effectively been eliminated across the NSW market. Almost all landlords and agents have stopped the practice, improving fairness and consistency in rent pricing.
Stay informed
The NSW rental reforms of May 2025 mark one of the most significant updates to tenancy laws in decades. They bring new protections for renters, while still allowing landlords to manage their investments. Both parties should take time to review the changes to avoid penalties and disputes.
If you’re a tenant or landlord and need advice on how these changes affect you, contact a property professional or legal advisor to ensure you’re compliant. For full details, visit the official NSW Fair Trading site: Changes to rental laws.
CONTACT ALLAN HALL BUSINESS ADVISORS