Renting Revamped: NSW Delightful yet disruptive rental reboot

Did you know New South Wales rental population accounts to approximately one-third of households? With so many people relying on rental homes, renting in New South Wales is getting a glow-up thanks to the state Government’s new laws aimed at making life fairer and more predictable for tenants and landlords.

Here’s the lowdown on the changes that rolled out starting on 31 October 2024, with further changes on the horizon for early 2025.

Caps, Checks, and Cheering Renters

In October 2024, two big wins hit the rental scene:

• One Rent Hike a Year: The days of surprise rent increases are now over. Landlords can now only raise the rent once every 12 months across all tenancy agreements including fixed-term leases shorter than two years, giving tenants breathing room to budget and plan.

• Ban on Fees for Background Checks: Tenants won’t have to fork out cash for background checks anymore, leveling the playing field in an already fierce rental market and addressing the affordability concerns during the rental application process.

Evictions Get a Reality Check

Coming soon in early 2025, NSW is saying "see ya" to no-grounds evictions. Landlords will need a valid reason to give tenants the boot, whether it’s significant property repairs are required, it's selling the property or moving in themselves. Renters can finally feel more at home, knowing their lease isn't dangling by a thread.

Notice Periods Get a Boost

Fixed-term leases are also getting a little kinder. Landlords now need to give:

• 60 days’ notice for leases under six months.
• 90 days’ notice for longer leases.

Periodic agreements keep the standard 90 days, ensuring renters have enough time to find their next perfect spot.

Pets Finally Get a Paw in the Door

For animal lovers, the new rules mean clearer processes for welcoming furry friends into their rental homes. Landlords must offer specific reasons to say "no" to a pet, bringing some tail-wagging joy to tenants.

Why This Matters

Renting in NSW is no walk in the park - with skyrocketing rents and cutthroat competition for properties, these changes are a breath of fresh air. They aim to create a rental market that’s not just fairer, but friendlier too.

If you need any advice regarding your rental agreements or how these changes might affect you, the Lawgix crew is here to help.