NSW Rental Reforms – What Landlords Need to Know.
As a landlord in New South Wales, staying informed about recent rental reforms is essential. These changes, designed to create a fairer system for tenants, however they place significant constraints on landlords. Below is an in-depth guide to the key reforms, how they affect you as a landlord, and why many of these changes represent a clear shift in power toward tenants.
These reforms are set to commence on 19 May 2025, as recently announced by the NSW Government.
1. Standardised Rental Agreements
The move toward standardised rental agreements creates more transparency for tenants but limits landlord flexibility.
Fixed-term leases: Tenants can now request leases of up to five years. While this offers tenants long-term security, it may lock landlords into agreements that are difficult to adjust if market conditions shift.
No rent bidding: Designed to prevent rent inflation, landlords must now advertise a fixed rent amount. Accepting higher offers from prospective tenants is no longer allowed, even in a competitive market.
2. Tighter Controls on Rent Increases
Landlords now face greater regulation around rent increases, limiting their ability to respond to rising costs or market shifts.
One increase per year: Rent can only be raised once every 12 months, with 60 days’ notice now required (up from 30).
Rent caps and justification: Increases must be reasonable and supported with evidence. If market rates rise sharply, landlords may struggle to keep pace unless they meet strict criteria.
3. End of "No-Grounds" Evictions
From 19 May2025, landlords will no longer be able to terminate any lease—fixed-term or periodic—without a valid reason.
Valid grounds required: Reasons could include selling the property, owner occupation, or undertaking major renovations. 'No-grounds' evictions will be prohibited across all tenancy types. Longer notice periods will apply depending on the grounds provided for termination.
Tenant flexibility to exit early: If tenants receive a termination notice and find a new rental, they will have the right to end their lease early—without penalty.
4. Maintenance & Repair Obligations
Stricter obligations now apply to ensure safe and habitable rental conditions.
Tenant-requested repairs: Tenants can request timely repairs, and if issues aren’t resolved, they may seek compensation or even terminate the lease.
Minimum property standards: Properties must meet defined safety and habitability requirements, including working plumbing, secure locks, and proper insulation.
5. Domestic Violence Provisions
New protections allow tenants in domestic violence situations to end leases without financial penalty.
Immediate termination rights: Tenants can leave immediately, even during a fixed-term lease, without incurring break-lease costs.
6. Short-Term Rental Restrictions
Short-term rental regulations are tightening, particularly for platforms like Airbnb.
180-day cap in Sydney: Non-hosted short-term rentals are now limited to 180 days per year in metropolitan areas.
7. Renting with Pets – New Standard Process
New pet ownership rules will come into effect from 19 May 2025, giving tenants clearer rights and streamlining the approval process.
Application process: Tenants can apply to keep a pet using a standard form.
Valid reasons only for refusal: Landlords can only refuse for specific reasons, such as strata restrictions, council limitations, or if they plan to move into the property.
Automatic approval after 21 days: If landlords or their agents do not respond within 21 days, the application is automatically approved without conditions.
8. Fee-Free Ways to Pay Rent
From 19 May 2025, tenants must be offered at least one free, electronic rent payment method, such as direct bank transfer.
No more payment processing fees: Agents or landlords can no longer require tenants to use platforms that charge extra fees to process rent payments.
Conclusion: A New Era for Landlords
The recent NSW rental reforms signal a shift toward tenant protection, introducing new restrictions for landlords in areas such as lease terminations, rent increases, pet ownership, and payment processes. At SydneySlice Executive Rentals, we recognize how these changes can affect your investment and property management strategy.
We understand the frustration that comes with navigating these evolving regulations, but you can count on our dedicated Property Management team to keep you informed and guide you every step of the way. We’re committed to working closely with you, finding proactive solutions that minimise the impact of these reforms on your property investment.
If you need guidance or wish to discuss strategy on any of the above 2025rental reforms, contact Sarah for expert, landlord-focused support at rentals@sydneyslice.com or 0420 668 080. Your property’s success and performance are our top priority, and we’re here to help you adapt and thrive through every change.
