A Comprehensive Overview of the NSW Rental Reforms
Aimed to improving tenant protections, enhancing rental security, and creating a fairer housing market, as well as promoting sustainability, the Government has implemented significant reforms to the Residential Tenancies Act 2010 (NSW) (RTA).
These reforms are part of a broader national conversation about housing affordability and tenant rights, responding to growing concerns among renters and advocacy groups.
Here’s an overview of the key changes that have been rolled out over the past few months, and reforms that will come into effect soon.
Reforms effective now
- Fees before a tenancy
Prospective renters must not be charged fees, such as background checks, identity checks or for the preparation of tenancy agreements. More information on background checks and other fees can be found here.
- Rent increases
Rent can only be increased once every 12 months for all lease types, including when a lease is being renewed or replaced.
An exception applies if the change is due to an increase in a tenant’s social housing rent rebate. More information on rent increases can be found here.
- Water efficiency measures
Toilets: all on the property must have dual flush functionality and a minimum Standards (WELS) rating.
Cold water, and single mixer taps: these can have a maximum flow rate of 9 litres per minute for internal kitchen sinks and bathroom hand basins. Taps for the bathtub, laundry sink, washing machines, dishwasher and outdoor taps are exempt from the 9 litre per minute flow rate requirement.
Shower heads: these can have a maximum flow rate of 9 litres per minute.
No leaking taps or toilets: there can be no leaking taps or toilets anywhere on the property at the start of the tenancy and whenever the other water efficiency measures are installed, repaired or upgraded.
Passing on water usage costs to tenant: Water usage charges must be billed separately from rent, and landlords must provide a copy of the water bill or another form of evidence. Tenants should be given at least 21 days to pay, and charges must not exceed the amount billed by the water provider.
More information about the new water charges can be found here.
Reforms effective as of 19 May 2025
- Ending no-grounds evictions
Owners will be required to provide a valid reason to end all lease types. There will be longer notice periods that will apply in some cases and tenants who secure a new home after receiving an eviction notice will also have rights to end their lease early (for instance, if they find a new property to rent).
- New rules for pets in rental homes
Tenants can apply to keep a pet, with landlords only able to refuse for specific reasons, such as owner-occupation or council restrictions. A standard application process will be introduced, with an approved application form to be used, and approvals will be automatic without conditions if no response is given by landlords or their agents within 21 days.
- Fee-free ways to pay rent
Tenants will have access to free, electronic payment options like direct bank transfer, preventing additional fees that can increase rental costs.
Read the Government announcing these reforms here.
Expected reforms later this year
Further reforms, including stronger privacy protections for tenants and the introduction of a portable rental bond scheme are expected later in 2025.
We’re here to help
Navigating the ever-evolving landscape of NSW’s rental laws is time is time consuming, and at times confusing, and we’re here to help.
We manage any upgrades needed to meet the new water efficiency requirements and we will save you time by doing the separate billing, and managing any queries your tenants may have about water charges.
Furthermore, as members of The Real Estate Institute of New South Wales (REINSW), the peak industry body for real estate agents and property professionals in NSW we do all the training to ensure we are up-to-date with the latest legislation; this means rental agreements, inspections, rent increases, and evictions follow the current laws.
This minimises the risk of legal disputes or penalties that could arise from non-compliance.
But keeping your property legal and safe are just one of the many things we manage. We carry out regular inspections, arrange maintenance with qualified and registered tradesmen, and maintain good communications with tenants. This gives you time to do the things you want to do, while giving you peace of mind your property is being properly managed and cared for.
As well as managing your property, we’re here to give you information to help you make informed decisions. We want you to get the best from your asset, and our experienced team, headed up by industry award-winning Kellie Andriessen, makes this happen.
Call us on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or visit us in person in our Cardiff office to find out more.
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