Major Rental Reforms Now in Effect Across NSW

On 19 May 2025, significant changes to rental laws came into effect in New South Wales – impacting both landlords and tenants alike. These reforms aim to create greater fairness, transparency and clarity across the rental market. At Schwarz, we’re committed to keeping our clients informed, so here’s a clear breakdown of what you need to know.

Ending ‘No Grounds’ Terminations

One of the most talked-about changes is the removal of ‘no grounds’ evictions. Landlords must now provide a valid reason when ending a tenancy – whether the lease is periodic or at the end of its fixed term. Acceptable grounds include:

• Breach of lease (e.g. property damage or non-payment of rent)
• Selling the property with vacant possession
• Substantial renovations or demolition
• Owner or family intending to move in
• Property to be repurposed (e.g. for business use)
• Ending of employment-linked accommodation
• Tenant no longer eligible for specific housing programs

Importantly, landlords are now required to issue a termination notice that includes an information statement outlining both their obligations and the tenant’s rights. Supporting documents must also be provided in certain cases – such as for renovations, sale or owner-occupation. Heavy penalties apply if these are misleading or false.

From 1 July 2025, landlords and agents will also need to submit the reason for ending a tenancy when releasing or claiming a bond via Rental Bonds Online.

Notice Periods Extended

Tenants must now be given longer notice periods before a lease ends:

• Periodic leases: 90 days’ notice
• Fixed term leases (6 months or less): 60 days’ notice (cannot end before lease expiry)
• Fixed term leases (more than 6 months): 90 days’ notice (cannot end before lease expiry)

These changes apply to existing leases too and are designed to give tenants more time and stability when planning their next move.

Re-letting Restrictions Introduced

To prevent misuse of certain termination grounds, landlords may be restricted from re-letting a property for a set period. For example:

• Owner or family moving in / sale of property / demolition: 6-month re-letting restriction
• Property no longer to be used as a rental: 12-month restriction
• Major repairs or renovations: 4-week restriction

This ensures that the stated reason for ending the lease is genuine and not simply a way to fast-track tenant turnover.

It’s Now Easier for Tenants to Have Pets

Tenants now have a clearer pathway to request approval to keep a pet – and silence from the landlord is considered approval after 21 days.

Landlords can only refuse a pet request under specific circumstances (e.g. animal welfare concerns, property unsuitability, breach of strata by-laws), and they cannot charge extra rent or bond in return for approval.

Once permission is granted, it stays in place for the life of the animal – even if ownership or management of the property changes.

Landlords also can no longer advertise a property as ‘no pets allowed’, and blanket bans via strata by-laws are no longer enforceable.

Rent Payments by Bank Transfer – No Extra Fees

Tenants must now be offered the option to pay rent via bank transfer – without being charged a fee. They also cannot be forced to use a specific app or payment provider.

What This Means for Landlords and Tenants

For landlords, the reforms mean clearer rules, more accountability, and greater focus on transparency when ending a lease or making decisions that affect tenants’ rights.

For tenants, these changes offer more security, autonomy, and flexibility – especially when it comes to pets and moving plans.

At Schwarz, we’re committed to keeping our clients ahead of the curve. Whether you’re a landlord navigating your responsibilities, or a tenant wanting clarity around your rights, our team is here to help.

Got questions about how these changes apply to your situation?
📞 (02) 9939 5400
📧 dom@schwarzre.com.au