Big Changes to NSW Tenancy Laws: What Sydney Landlords Need to Know

If you're a landlord in Sydney, significant changes to NSW tenancy laws are underway in 2025, impacting how you manage your rental properties. Some reforms are already in effect, while others are set to roll out later this year.

Key Changes and Their Effective Dates

Here's a concise overview of what's changing and when:

1. No More "No Grounds" Evictions (Effective First Half of 2025)

Landlords will soon be required to provide a valid reason to terminate a tenancy, ending the practice of 'no grounds' evictions. This change aims to offer tenants greater stability. ​

2. Pet-Friendly Policies (Effective First Half of 2025)

Tenants will have the right to request permission to keep pets, and landlords must provide a legitimate reason for any refusal. If no response is given within 21 days, the request is automatically approved. ​

3. Rent Increases Limited to Once a Year (Effective 31 October 2024)

Rent increases are now restricted to once every 12 months for all lease types, including fixed-term and periodic agreements. This measure provides tenants with more predictable housing costs. 

4. Prohibition of Tenant-Funded Background Checks (Effective 31 October 2024)

Landlords and property managers can no longer charge tenants for background checks during the application process, ensuring a fairer system for prospective renters. ​

5. Mandatory Fee-Free Rent Payment Options (Effective First Half of 2025)

Landlords must offer tenants at least one fee-free method for paying rent, such as bank transfers or Centrepay, making rent payments more accessible. ​NSW Government

6. Introduction of Portable Bonds (Expected Late 2025)

Later in 2025, a portable bonds scheme will allow tenants to transfer their existing rental bond to a new property, reducing the financial burden during moves. ​

What This Means for You

As a landlord, it's essential to review and update your rental agreements and management practices to comply with these new laws. Consulting with property management professionals or legal advisors can help you navigate these changes effectively and maintain positive relationships with your tenants.

For more detailed information, refer to the following sources:

• Tenancy laws are changing in NSW

• Changes to rental laws

• Important changes to NSW Rental Laws are now in effect

Staying informed and proactive will help you adapt to these reforms smoothly and continue to manage your rental properties successfully.