Landlords and tenants across New South Wales are urged to get to grips with the sweeping changes to the state’s tenancy laws with the introduction of the Residential Tenancies Amendment Bill 2024.

The updated legislation, which amends the Residential Tenancies Act 2010, will significantly impact how rental agreements are managed, particularly regarding pets, lease terminations, and rent increases.

Maria Milillo, Head of Property Management, Raine & Horne Group, breaks down the key reforms and what they mean for you:

Easier for tenants to keep pets

The new laws make it easier for renters to keep pets in their homes. For instance, landlords must provide a written response to a pet request within 21 days. If they do not respond, the request will be automatically approved.

A landlord will only be able to refuse a pet for specific reasons:

• There would be too many animals on the property
• The property is unsuitable for the animal 
• The animal(s) will likely cause more damage than the bond could repair
• The landlord lives at the property
• keeping the animal or animals would break other laws, local council rules, strata or community scheme by-laws, or a residential community rule

No more “no grounds” evictions

Landlords can no longer terminate a tenancy without valid grounds, and appropriate evidence must be provided to support the reason. Valid reasons for ending a tenancy include:

• Sale of the property
• Significant renovations or demolition
• Property required for family use or key worker accommodation
• Tenant breach of agreement

Wrongful termination is now an offence, with strict penalties for non-compliance.

Re-letting restriction apply

If a landlord ends a tenancy for a specific reason, the legislation imposes mandatory re-letting bans based on the reason for ending the lease:

• 12 months if the property is to be withdrawn from the rental market.
• 6 months for a sale or if the landlord or a family member occupies the property, or it is to be demolished.
• 4 weeks if the tenancy ends due to significant renovations or repairs.

Financial and legal penalties may apply if a new lease is entered into during these restriction periods without formal exemption from NSW Fair Trading.

Rent increases capped

Rent increases can only occur once every 12 months, and this applies to both fixed and periodic agreements.

Extended notice periods for lease terminations

Notice periods required to terminate tenancies are also increasing:

• Periodic leases: minimum of 90 days’ notice.
• Fixed-term lease of 6 months or less: At least 60 days’ notice, and the lease can’t end before the agreed term
• Fixed-term lease of more than 6 months: A minimum of 90 days’ notice must be given, and the lease cannot end before the fixed term expires.

Specific grounds, such as a breach of the agreement, may require a shorter notice period.

Whether you're a landlord or tenant seeking clarity on these legislative changes in NSW, don’t hesitate to contact your local Raine & Horne Property Manager for expert guidance.