Leanne Jopson , National Executive – Property Management
As the rental landscape evolves, so, too, do the duties of property owners.
Starting on 19 May this year, landlords in NSW will see a shift in their responsibilities, due to a suite of reforms that were recently legislated.
- Ending no-grounds evictions: Owners will now be required to provide a valid reason to end all lease types. Longer notice periods will apply for some leases, giving renters more certainty and time to find a new home, while ensuring landlords can still effectively manage their properties. Renters who find a new property after receiving an evictions notice will also have improved rights to end a lease early.
- New rules for pets in rental homes: Tenants will be able to apply to keep a pet in their rental home, with owners only able to refuse for specific reasons, such as the owner living at the property or failure to comply with local council laws. A standard application form and process has been developed to make the system clearer and more efficient for both renters and owners. Approval will be automatic if owners do not respond to pet applications within 21 days.
- Fee-free ways to pay rent: Renters will have access to convenient, free and electronic payment options such as direct bank transfer, preventing extra fees that can add to rental costs.
In October last year, the Residential Tenancies Amendment Act 2024 (NSW) was also passed, which included other vital reforms that landlords must be across:
- Rental increases: Rent increases are now limited to once every 12 months, regardless of whether the lease is a fixed-term or periodic agreement. Subsequent agreements between the same parties are treated as a continuation of the original agreement to prevent attempts to bypass this restriction. The first rent increase can only occur a minimum of 12 months after the tenancy commenced.
- Water Efficiency Requirements: Landlords must ensure their property meets new water efficiency requirements if they wish to continue charging tenants for water usage, including dual flush toilets with a minimum three-star rating.
- Prohibited changes: It’s now prohibited to charge prospective tenants for background checks when applying for a tenancy or for the preparation of a lease.
- Rental Bond Board: The NSW Rental Commissioner is now allowed to sit on the Rental Bond Board. The Rental Bond Board serves as an independent custodian of rental bonds and plays a critical role in tenant-landlord financial interactions.
Looking ahead, landlords should also be prepared for portable rental bonds and stronger privacy protections for renters later this year, with the measures likely requiring adjustments in property management practices.
Finally, staying informed is key. The NSW Rental Commissioner and NSW Fair Trading are providing resources to ensure landlords understand and comply with these reforms.
