Changes to rental laws | NSW Government

What is changing?

On 24 October 2024 the NSW Parliament passed the Residential Tenancies Amendment Bill 2024. The legislation is now the Residential Tenancies Amendment Act 2024 (the Act). Changes to end no grounds terminations and making it easier to keep pets are part of the Residential Tenancies Amendment Regulation 2025.

The Act delivers on the NSW Government’s commitment to improve rental laws to support tenants, landlords and the community. It sets up better renting rules that will help give more stability for tenants and certainty for landlords. 

These changes:  

• require landlords to provide a reason to end a lease - ending ‘no grounds’ terminations for tenants
• make it easier to keep a pet in a rental home
• limit rent increases to once per year for all lease types
• prevent extra fees at the start of a tenancy, including fees for background checks and for preparing a tenancy agreement 
• ensure tenants can pay rent by bank transfer.

Jump to Summary of the changes for more information on each change.

Why are rental laws changing?  

The changes to rental laws progress the NSW Government's election commitments to make renting in NSW fairer and improve protections for tenants. 

These reforms follow extensive public consultation through the NSW Government’s Have Your Say platform in 2023 and targeted consultation with tenants, landlords, tenant advocates, real estate and industry stakeholders.

When will the changes start?  

Two important changes started on 31 October 2024. These changes:

• clarify extra fees are prohibited at the start of a tenancy for prospective tenants. This includes fees for background checks and preparing a tenancy agreement
• limit rent increases to once per year for all leases.

Other changes started on 19 May 2025. These changes: 

• require a reason to end a lease (ending no grounds terminations)
• make it easier for tenants to keep pets
• ensure tenants can pay rent by bank transfer.

How will the changes be implemented and enforced?

NSW Fair Trading will enforce the changes. A new Rental Taskforce has been created within Fair Trading with dedicated inspectors and compliance officers who will focus on preventing and responding to breaches of rental laws.

Source: https://www.nsw.gov.au/departments-and-agencies/fair-trading/changes-to-rental-laws