NSW government’s rental reforms to kick in on Monday

New laws come into effect across NSW today, aimed at improving stability and fairness for the state’s 2.3 million renters.

The long-awaited reforms - which were flagged as part of a major overhaul of the state’s rental system - introduce several key changes.

From Monday, landlords must provide a valid reason to end a lease - no matter the type -effectively ending no-grounds evictions.

The legislation also increases notice periods for some terminations and gives tenants more flexibility if they secure a new rental after receiving an eviction notice.

Tenants will also have the right to apply to keep pets in their rental home, with landlords only able to refuse under limited and specific circumstances.

A standardised process and form have been created to simplify pet applications, and if a landlord does not respond within 21 days, the application will be automatically approved.

Renters must also now be offered at least one method of fee-free rent payment, such as direct bank transfer.

Premier Chris Minns said the changes reflected the evolving needs of renters in NSW.

“Today marks a significant change which brings the rental market into the 21st century and makes renting fairer,” Mr Minns said.

“More people than ever are renting, and they are renting for longer, so these reforms improve security and fairness in the rental market.”

“These are sensible reforms and with more than two million renters in NSW and over 600,000 investors, we have taken the time to get these major changes right.”

The new rules also limit rent increases to once per year across all lease types and confirm that rental applicants cannot be charged fees before entering a tenancy, such as for background checks.

A new portable rental bonds scheme, expected to launch later this year, will allow eligible tenants to digitally transfer their bond between properties.

Additional measures include a ‘rent check’ website to help tenants gauge pricing in their area by comparing advertised rents for similar listings, and a dedicated rental taskforce to enforce these laws and investigate serious breaches.

Minister for Housing and Homelessness Rose Jackson said the reforms were about removing uncertainty and modernising the rental system.

“For too long, renters have lived with the fear of being kicked out for no reason. That ends today. We’re delivering the security and stability that 2.3 million renters in NSW deserve,” Ms Jackson said.

“These reforms recognise that pets are part of people’s families. Renters shouldn’t have to choose between a place to live and keeping their companion animal.

“This is the biggest step forward for renters in a generation - we’re building a system that’s fair, modern and puts people first.”

Rental commissioner Trina Jones said her team had worked extensively with the industry and communities across the state to prepare for the rollout.

“We have new information and resources on the NSW Government website providing clear, reliable information to help renters, landlords and agents navigate these changes with confidence,” she said.

More details about the changes and guidance for tenants and landlords are available on the NSW Government’s housing and rental website.