What Landlords in NSW Need to Know About the Rental Legislation Changes in 2025
Jan 15, 2025 – 4-minute read – by Shellee Panada – edited by Guilherme L Souza
Key Updates to NSW Rental Legislation in 2025
On 24 October 2024, the NSW Parliament passed the Residential Tenancies Amendment Bill 2024, now known as the Residential Tenancies Amendment Act 2024. These new laws bring significant changes aimed at improving the rental experience for both landlords and tenants. While they strive to create a fairer and more stable rental market, they also introduce new responsibilities and protections for tenants that landlords need to fully understand.
At Property Providers, we are dedicated to keeping you informed and ensuring you remain in safe hands. With these changes now in effect, it is imperative to understand how they will impact your rental property and its management. As always, having a highly experienced property manager by your side ensures you can navigate these changes smoothly, mitigate risks, and maintain compliance.
Watch our video summary to get a clear overview of the key updates to the 2025 NSW rental legislation and what they mean for landlords. Stay informed — watch now!
1. Knowing Exactly What is Changing
Here are the key changes introduced by the new legislation:
No ‘No Grounds’ Terminations
Landlords must now have a valid reason to end a tenancy. This puts an end to the practice of terminating leases without cause, offering tenants greater security and stability.
Easier Pet Approval
Tenants can request to keep a pet, and landlords may only decline for specific reasons. If landlords fail to respond within 21 days, the request will be automatically approved.
Limiting Rent Increases
Rent increases are now limited to once per year, regardless of lease type. This applies to both fixed-term leases under two years and periodic leases.
No Fees for Background Checks
Landlords can no longer charge tenants for background checks during rental applications.
Electronic Rent Payments
Landlords must offer tenants the option to pay rent electronically via methods such as bank transfer or Centrepay, without imposing additional fees.
2. Why These Changes?
The NSW Government introduced these reforms to create a fairer rental market by providing stronger tenant protections while giving landlords more clarity and structure. The changes are the result of extensive consultations with tenants, landlords, and industry stakeholders. While the aim is to balance the rental market, we believe these reforms impose additional risks for landlords while prioritising tenant protections.
3. Why Is It Crucial for Landlords to Understand These Changes?
While these changes aim to balance the rental environment, they bring new obligations and risks for landlords. Here’s why understanding them is vital:
Compliance is Key
Failure to adhere to these rules could lead to penalties, disputes, or fines. Landlords must carefully follow procedures when increasing rent, terminating leases, or responding to pet requests.
Protecting Your Investment
Managing a rental property isn’t just about collecting rent—it’s about compliance, relationship management, and safeguarding your property. Understanding these updates ensures your property and income remain secure.
Avoiding Legal Disputes
With stronger tenant protections, landlords must now follow legal procedures meticulously. Any failure to comply could result in disputes or legal action, with tribunals often favouring tenants.
4. Why Having an Expert in Your Corner is Imperative
Navigating these new rental laws can be complex. This is where having an expert property manager becomes invaluable:
Expertise in Compliance
A knowledgeable property manager stays up-to-date with legislative changes, ensuring your rental property is fully compliant and helping you avoid penalties.
Risk Mitigation
From lease terminations to rent increases and pet approvals, an experienced property manager helps mitigate risks and ensure proper procedures are followed.
Proactive Preparation
Some changes, such as the requirement for valid lease termination reasons, don’t take effect until 2025. A property management expert helps you prepare for these changes well in advance.
Efficient Property Management
With changes affecting rent payments, pets, and maintenance requests, a property manager ensures smooth and compliant operations.
Peace of Mind
Partnering with a professional gives you confidence that your property is well-managed, compliant, and protected against potential pitfalls.
5. What Do You Need to Do?
At this stage, awareness is key. Understanding these updates is essential for all landlords.
Navigating these new regulations independently can be challenging, but with Property Providers on your side, you’ll stay compliant, avoid legal pitfalls, and maximise the potential of your investment. These changes bring both challenges and opportunities—together, we can ensure you’re well-prepared to adapt.
Related Blogs
Looking for more insights? Explore our other articles on navigating legislation:
- Mastering Strata Rules: Your Ultimate Guide to Short-Term Letting Success in NSW
- NSW Short-Term Rental, Strata, and Tenancy Regulation Laws: Latest News
- Regulating Short-Term Rentals? Not Really… Critical Information for Investors
- Be Careful How You Drive the Rent Up
For further assistance or to learn more about these changes, reach out to Property Providers. We’re here to support you every step of the way.
At Property Providers, our core purpose is “Helping People Live Better”. As Sydney’s most flexible residential rental agency, we are focused on Property Management and renting “Your Property, Your Way”. We have designed 6 different rental services covering all facets of Long-Term Leasing and Short-Term Stays. Unlike franchise real estate agencies, we see the value in pragmatism and flexibility. Whether you want to rent your property furnished or unfurnished, for 6 months or 5 years, we will manage your property, your way. Our bespoke marketing strategies deliver discerning international tenants who understand quality and are prepared to pay for it. If you would like to learn more please visit our website or call us on +61 2 9969 7599
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Shellee Panada
Shellee is a dedicated professional who thrives on building meaningful connections and ensuring her clients feel supported every step of the way. With over a decade of experience in the real estate industry, particularly in the Lower North Shore, Shellee has honed her skills from administrative beginnings to becoming the Department Head of a Residential Agency firm. Her approach is simple: it’s not just about looking after the property, but ensuring her clients’ investments are in the best hands possible. Known for her exceptional communication skills, attentiveness, and strategic investment focus, Shellee brings passion, performance, and partnership to every interaction. Raised in a small coastal town 3 hours south of Sydney, Shellee’s personal and professional journeys are driven by her core values of freedom, integrity, connection, and purpose. (Learn more about Shellee.)
