From 19 May 2025, New South Wales (NSW) abolished “no-grounds” evictions, meaning landlords must now provide a valid reason to terminate a lease.

The new laws strengthen tenant protection and also make it easier for tenants to keep pets and ensure rent payments by bank transfer are fee-free.

The other significant law changes commenced on 31 October 2024 include limiting rent increases to once per year for all lease types and preventing extra fees at the start of a tenancy, including fees for background checks and for preparing a tenancy agreement.

These reforms, introduced under the Residential Tenancies Act 2024, aim to create a more balanced rental market. Notably, the changes apply to both new and existing leases.

Key changes to tenancy laws in NSW

  1. Abolishing no-grounds evictions

Landlords can no longer evict tenants without a valid reason, whether on periodic leases or at the end of fixed-term agreements. This reform addresses the long-standing power imbalance between landlords and renters.

The NSW Government estimates that between 5,000 and 15,000 no-grounds evictions occurred annually prior to this change.

Acceptable grounds for ending a tenancy include:

  • Tenant breach of agreement (the tenant is at default).
  • Sale or proposed sale of the property with vacant possession.
  • Major renovations, repairs, or demolition.
  • The landlord or their immediate family moving into the property.
  • The tenant’s ineligibility for affordable or transitional housing.
  • The tenant is no longer a student in purpose-built student accommodation.

Notice periods for termination will range between 60 and 90 days for periodic and fixed term lease types.

  1. Keeping a pet

Tenants now have stronger rights to keep pets. A landlord can only refuse a pet request for specific reasons, such as:

  • The property already houses four or more animals.
  • The property is unsuitable for the type or size of the animal.
  • It is highly likely the animal will cause damage exceeding the rental bond.
  • The landlord resides at the property.
  • Keeping the animal would breach other laws or strata rules.
  • The tenant has not agreed to reasonable conditions for keeping the pet.
  1. Rent payment options

Landlords and agents must provide tenants with the option to pay rent via bank transfer without imposing any additional fees. Tenants may agree to alternative payment methods if both parties consent.

  1. Limiting rent increases

Rent can now only be increased once every 12 months, regardless of the lease type. An exception exists for social housing, where increases due to rent rebate changes may occur more frequently.

  1. No extra fees at lease commencement

Tenants and prospective tenants cannot be charged additional fees during the rental process. This includes:

  • Fees for background or credit checks.
  • Charges for preparing tenancy agreements.

Additional proposals: A landlord register

Some tenancy advocates are calling for the introduction of a Landlord Register to publicly identify landlords with a history of misconduct. Advocates argue that increased transparency would deter poor practices and help renters make informed choices.

Currently, Victoria is the only Australian state with such a system. The Victorian Rental Non-Compliance Register, introduced in March 2021 and maintained by Consumer Affairs Victoria, publicly lists landlords and agents found to have breached tenancy laws.

It currently includes just 16 entries, highlighting possible underreporting or challenges with enforcement.

These changes mark a significant step forward in strengthening tenant rights and ensuring fairer rental practices in NSW. As the reforms take effect, ongoing oversight and potential complementary measures—such as a landlord register—could further support equitable rental outcomes across the state of NSW.