Co-Authored by Tiffany Craig
KEY TAKE OUTS:
- From 19 May 2025, changes have been made to the Residential Tenancies Act 2010 (NSW) introducing greater protections for renters.
- The changes include fee-free rent payment, prohibiting potential tenants bearing background check costs, providing a structured process for pets in rentals, making ‘no grounds’ evictions unlawful, and applying 12-month caps on rent increases.
From 19 May 2025, the 2024 amendments to the Residential Tenancies Act 2010 (NSW) (“the Act”) come into force. These changes are crucial to residential tenant protections and provide relief to renters in a challenging market. See below for a brief summary of the key amendments:
1. Method of Rent Payment
Rent must now be able to be paid in a no additional fee and convenient manner. The Act prescribes that rent can only be paid for through ‘Centrepay’ or by electronic bank transfer. Penalties apply to landlords if they fail to provide a free way for tenants to make payment (Section 35).
2. Background Checks
Landlords can now not impose costs on prospective tenants when conducting background checks. This means that if landlords wish to conduct a background check on a potential tenant, they must bear the costs themselves. Penalties apply to landlords if they require tenants to incur such a cost (Section 23).
3. Pets in Rentals
Tenants need to make an application to the landlord for consent to keep a pet in the residence (unless the pet is an assistance animal, whereby no consent is needed). The landlord is then required to respond to the application within 21 days. If consent is denied, reasons must be given to the tenant explaining why consent was denied. Consent may also be given with reasonable conditions, such as requiring the pet remains outside. Both refusal of consent or conditions imposed cannot be unreasonable and must meet the requirements of the Act. Tenants are eligible to apply to the NSW Civil and Administrative Tribunal (“NCAT”) should they think the refusal of consent is unlawful (Part 3, Division 8).
4. ‘No Grounds’ Evictions Unlawful
Arguably one of the most crucial changes to be made is making it unlawful for landlords to evict tenants without providing specific grounds for eviction. The grounds include the following:
- There has been a breach of the tenancy agreement,
- The premises being leased are to be sold or there is a contract for sale,
- Significant renovations or repairs to the premises are to occur requiring the premises to be vacant,
- The premises is to be demolished,
- The tenant is no longer eligible for the affordable housing scheme, transitional housing program or student accommodation,
- The premises is required as a part of the NSW Government key worker housing scheme,
- The premises is to cease being used as a rented residential premises,
- The landlord or their family are to move into the premises, or
- An employee or caretaker residential tenancy agreement has ended.
If a residential tenant receives a termination notice, one of the above grounds must be specified as a reason for eviction and evidence to show that one of the grounds has been met must be included. Penalties apply to landlords who wrongly evict a residential tenant (Part 5, Division 2, Subdivision 1).
5. Limits on Rent Increases
The Act now prohibits rent from being increased more than once in any 12-month period. This limit does not apply to fixed term tenancy agreements of less than 2-years that were entered into before 13 December 2024. Otherwise, the limit applies to all ongoing periodic tenancy agreements before and after the amendments have come into force (Section 41).
Conclusion
These key amendments are the product of years of campaigning and signify a shift in providing protections and stability to residential tenants in NSW. If you are unsure how these changes apply to you, see the Tenants’ Union of New South Wales website for useful summaries (https://www.tenants.org.au/). If you need further advice, contact the Property Law team at Coutts Lawyers & Conveyancers who will be able to advise you of your rights and available actions.
ABOUT ADRIANA CARE:
Adriana is the Managing Partner for Coutts. She acts for large commercial financial institutions in relation to corporate governance, and the provision of retail and wholesale credit and funding facilities for both the commercial and consumer market.
She also acts for a range of ADIs, finance companies, vendor introduces and equipment lessors. She acts for a number of franchisors and franchisees, as well as small property developers, builders and commercial property leases and debt recovery. Adriana has also worked in the fields of insolvency, commercial disputes and litigation and occupational.
For further information please don’t hesitate to contact:
Adriana Care
Managing Partner
adriana@couttslegal.com.au
1300 268 887
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.
