Rental Reforms – What’s Changing & When

📈 Rent Increase Limit – NOW IN EFFECT

As of 31 October 2024, rent increases are limited to once every 12 months for all tenancy agreements, whether fixed-term or periodic.
This change is designed to promote greater stability for tenants while still allowing landlords to adjust rent fairly.

✅ Our processes have already been updated to comply with this reform.

🐾 Pet Ownership – Effective 19 May 2025

Tenants will have a clearer process to request a pet, and landlords will no longer be able to unreasonably refuse.

• Landlords must respond to pet requests within 21 days – if no response is given, consent is automatically assumed.

• Refusals must be based on valid reasons, such as local council regulations, lack of fencing, or property suitability.

• Reasonable conditions (e.g., flea treatment or carpet cleaning at end of tenancy) may be imposed.

• Landlords cannot charge extra rent or increase the bond due to a pet request.

🚫 End of ‘No Grounds’ Evictions – Effective 19 May 2025

Landlords will no longer be able to terminate periodic tenancies without grounds. Termination will only be permitted for specific reasons, including:

• Sale of the property

• Breach of lease

• The property will no longer be used as a rental

• Owner or family member will occupy the home

• Demolition of the property

• Major renovations requiring the property to be vacant

📌 Reletting restrictions apply in some cases:

• If the property is not being used as a rental anymore, it cannot be relet within 12 months.

• If the reason is sale (without change of ownership), occupation by the owner/family, or demolition, it cannot be relet within 6 months.

🕒 Termination notice periods for fixed-term leases have also changed:

• 90 days notice for leases longer than 6 months

• 60 days notice for leases under 6 months

  💳 Payment Methods – Effective 19 May 2025

  Tenants must be offered at least one fee-free way to pay rent (e.g., BPAY or direct deposit).

  • If a third-party payment platform is used, all fees and charges must be clearly disclosed.
    

    ✅ Our office already provides a fee-free method for rent payments, so there will be no change to your tenants’ experience.

  🔍 Rental Commissioner & Taskforce

  A new $8.4 million Rental Taskforce has been created within NSW Fair Trading to enforce compliance and investigate breaches of rental legislation.
  Penalties may apply for non-compliance by landlords or agents.

  👥 What This Means for You

  ✔ Rent reviews: Already managed in line with the 12-month limit.
  ✔ Pet requests: We’ll handle requests and advise you based on the new rules.
  ✔ Termination notices: We’ll help you plan ahead for any changes in occupancy, sales, or renovations.
  ✔ Payment methods: Fully compliant – no action needed.
  ✔ Ongoing support: We’ll keep you informed as further updates are released to ensure your investment stays protected and compliant.

  If you have any questions about how these reforms may affect your property, feel free to get in touch. As always, we’re here to provide expert advice and protect your investment.