Tenancy laws are changing in NSW

From 31 October 2024 the 12 month cap on rent increases and the ban on fees for background checks came into effect. However the new rules around evictions and pets are not yet in effect.

12 month cap on rent increases

Now the circumstances in which your landlord/agent can increase your rent are more limited. Your landlord cannot increase the rent:

• within the first year of the start of the tenancy, or
• more than once in any 12 month period

These expanded rules apply to all residential tenancy agreements – both fixed-term and periodic (ongoing) agreements. The new laws also apply to any new residential tenancy agreement for the same premises, as long as the landlord and at least one tenant remains the same. 

Ban on fees for background checks

Landlords, agents and third party companies will no longer be allowed to charge prospective renters for background checks when applying for a rental property. This measure aims to address a recent trend of rental application platforms asking renters to pay a fee for a background check to improve their chances of securing a home.

What are ‘no grounds’ evictions?

At the moment NSW landlords can end a tenancy for any reason or no reason at all, as long as they provide the required notice period. This is commonly known as a 'no grounds' eviction. For more information about the current laws, see Factsheet 10: Landlord ends agreement and Blog: Time to end the trauma of no grounds evictions.

How are ‘no grounds’ evictions ending?

The new rules have not started yet. When they do:

• ‘No grounds’ eviction will cease to exist
• The landlord will need a valid legal reason to end your tenancy
• This requirement will apply to all residential tenancy agreements – both fixed-term and periodic (ongoing) agreements

What are the new ‘reasonable grounds’ for eviction?

The new defined grounds for eviction include:

• Significant renovations/repairs or demolition of the property, that mean you need to move out of the property
• A change in the use of the property, in situations where the property will no longer be used as a rental
• The owner or their family intends to move into the property
• The landlord proposes to sell the property
• The renter is living in affordable or transitional housing and is not eligible for that housing program anymore
• The renter is living in purpose-built student housing and is not enrolled as a student anymore
• The premises are part of NSW Government key worker housing scheme and are needed to house a priority key worker
• The agreement is an employee or caretaker agreement, and the employment or caretaker arrangement has ended

The new defined grounds for eviction also restate two existing grounds:

• Breach by the tenant (including non-payment of rent)
• Sale of premises requiring vacant possession

There are already other valid reasons for eviction in the existing tenancy legislation, and the new grounds will sit alongside these. The current eviction provisions allow your landlord to act to end your agreement on grounds of hardship, death of tenant, and ‘uninhabitability’.

Will there be penalties if these new termination grounds are misused?

• Significant penalties may apply to landlords or agents who misuse these new termination grounds
• Evidence will be required when serving most new grounds – these will be set out in the accompanying regulations 
• A reletting exclusion period may apply – meaning the landlord will need to apply for permission from the Secretary to enter a new lease within a prescribed time frame after termination

Are notice periods changing?

The current ‘no grounds’ eviction provisions only provide 30 days notice at the end of a fixed-term and 90 days notice for periodic (ongoing) tenancies.

The reforms extend the notice to end fixed-term agreements in some circumstances. The new notice is: 

• 60 days for leases shorter than six months. 
• 90 days for agreements longer than six months

There is no change to the notice for termination of periodic agreements under these reforms, for most grounds it stays at 90 days.

Are there more changes to come?

The bill passing does not mean that the law has formally changed yet. The regulations that fill in the detail of the legislation still need to be debated and finalised.

Some of these details might include:

• The evidence landlords will be required to show to demonstrate they have reasonable grounds – to ensure genuine and trustworthy eviction notices
• Changes to the standard form of agreement that are caused by these reforms
   

Pets

Under current rental laws in NSW, tenants can ask for permission to have a pet, but landlords can deny these requests without needing to provide a reason, with a few exceptions, such as assistance animals.

Under the reforms you will have the right to request permission to keep pets, and if consent is given, landlords can set some conditions for pets, but those conditions must be reasonable and related to the type of animal and the property. Unfair conditions, like charging extra rent or bond, are not allowed.

Landlords can refuse consent within a list of reasons set by legislation. These reasons include:

• that allowing the animal would lead to an unreasonable number of animals at the property,
• the property is not suitable for the animal because fencing is inadequate, there is not enough open space or, the property  would not allow the animal to be kept humanely, 
• keeping the animal would likely cause damage that would cost more to repair than the rental bond, 
• the landlord lives at the property,
• keeping the animal would violate a law, regulation, local council order, by-law or community rule,
• the tenant has not agreed to a reasonable condition proposed by the landlord.

If consent or a reason for refusal isn’t provided within 21 days, consent will be automatically granted.

If you do not agree with the reason for refusal given by the landlord or the conditions imposed on the consent, you will need to apply to the NSW Civil and Administrative Tribunal (NCAT).

Fee-free way to pay rent

Under the new rules, landlords will have to offer you a fee-free and accessible option for paying your rent. This will include methods such as bank transfers and Centrepay, ensuring that you have choices for paying your rent without incurring additional fees.

Other changes

Later in 2025 the Portable Bonds scheme will become operational, this will let you transfer your current rental bond to a new place rather than coming up with a second bond.

We are also expecting to see further changes regarding better protecting tenants data and privacy, including when applying for properties.

The law for renters living in Residential Land Lease Communities are also changing – for more information see the Noticeboard for land lease communities.

Stay tuned – we will update this page as new information becomes available. 

The bill passing does not mean that all the changes have come into effect yet.

Before commencement there is another process that needs to happen. The NSW Government will develop and introduce new regulations, which will be discussed and debated. These regulations are important because they prescribe how the new laws will work in practice – crucially they will set out evidence requirements for the newly introduced termination grounds.

We expect this to be finalised over summer and for this law to become effective in early 2025.

In the meantime you continue to have legal rights as a renter. If you face eviction see Factsheet 10: Landlord ends agreement. You can also seek advice and support from your local Tenants Advice and Advocacy Service.

Stay tuned – we will update this page as new information becomes available. 

The new eviction laws will apply to all tenants who have a tenancy agreement under the Residential Tenancies Act 2010 (NSW) – including both fixed-term and periodic (ongoing) tenancies. 

There are different laws for other living arrangements such as student accommodation, renters without a tenancy agreement, and people living in a boarding house – for more information see Factsheet 15: Share housing and Factsheet 14: Boarders and lodgers. 

If you have a tenancy agreement and you live in a Residential Land Lease Community, you are considered a renter for the purposes of the Residential Tenancies Act 2010 (NSW), and these reforms will apply to you. For more information see our factsheets for tenants in land lease communities. 

If you are unsure about whether these new laws will apply to your situation, it is a good idea to get advice from your local Tenants Advice and Advocacy Service.

News: 

• Media Release – NSW ends ‘no grounds’ evictions: Historic Win for Renters
• Renters and supporters celebrate announcement of 'no grounds' ban

Blog:

• NSW is ending 'no grounds' evictions: what does it mean for renters?

Community education: the Tenants’ Union will be running information sessions and producing further legal resources as more detail becomes available. Information sessions will be advertised on this page and via our newsletters.

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