Some of these changes came into effect from 31 October 2024. These Include: Limiting rent increases to once per year for all leases. Preventing charging the tenant extra fees at the start of a tenancy (including background checks and preparation of a tenancy agreement). The NSW Government has confirmed that the balance of the proposed changes will now come into effect from 19 May 2025. Below is a brief overview of what you need to know. 1. Ending 'No Grounds' EvictionsThis is probably the most transforming reform, which ends the 'no grounds' evictions. From 19 May 2025, landlords must have a legally recognised reason to end any type of lease. Some of these reasons include: Major renovations that require vacant possession. Plans to sell the property. The landlord or family needs to move back in. The property will no longer be used as a rental home. The existing rules where the tenant is at fault, because of breach of lease, damage to the property or non-payment of rent. 2. Notice PeriodsUnder the new laws, longer notice periods will need to be given to tenants, providing them with extra time to relocate: Fixed-term agreements of less than six months: 60 days' notice. Fixed-term agreements of more than six months: 90 days' notice. In addition, tenants who secure a new property after being served with an eviction notice will be able to end their current lease early. 3. Relaxing Pet Ownership RestrictionsUnder the new laws, tenants can apply to keep a pet, and the landlord can only refuse for specific valid reasons. A new standardised pet application process has been developed. If a landlord fails to respond to an application within 21 days, approval will be automatically granted. 4. Tenant-Friendly PaymentTenants are to be offered fee-free payment options. There is little doubt that staying across strict legislative requirements is not simple and that having a property manager to look after your investment property is a wise decision. We are here to help you navigate through all these important changes. Please contact us should you have any questions relating to these transformative reforms. Assuring you always our level of care,Property Management Team Disclaimer: All information is of a general nature only and is not intended to be relied upon as, nor to be substituted for, specific legal professional advice.
