If you’re a property investor in NSW, it’s important to be aware that rental laws are becoming more regulated, and landlords are facing increasing responsibilities to ensure compliance—on top of the usual financial pressures like mortgage repayments.
From 19 May 2025, a new wave of reforms is coming into effect, and they’re set to significantly impact how landlords and property managers operate. While the aim is to create a fairer, more transparent system for tenants, these changes reduce the level of control landlords have traditionally held—and increase the need for professionalism and legal know-how when managing a tenancy.
Here’s a quick breakdown of the key changes—and why it’s more crucial than ever to have the right agent in your corner.
1. Ending a Tenancy? You’ll Need a Valid Reason—and Proof
Gone are the days of simply giving a tenant notice to vacate. Under the new laws, you’ll only be able to end a tenancy with a valid, documented reason—regardless of whether the lease is fixed-term or month-to-month.
And it doesn’t stop there!
You’ll need to provide a Termination Information Statement, which the government is set to release shortly.
Failing to provide a genuine reason—or re-advertising the property after claiming it was needed for personal use—could land you in hot water.
The government’s goal is to prevent misuse of terminations, particularly where properties are said to be “sold” or “renovated” but are quickly re-rented instead. While this may protect tenants, it puts serious limitations on how flexibly owners can manage their assets.
2. Re-letting Restrictions: Flexibility Is Being Curtailed
If you end a lease to sell or renovate your property, you won’t be able to re-rent it straight away unless you apply for special permission from NSW Fair Trading—and provide documentation to support your case.
In other words: even if your circumstances change unexpectedly, you’ll still be bound by layers of red tape.
3. New Rules Around Notice Periods
If you do have a valid reason to end a lease, the notice period now depends on how long the lease has run:
60 days for leases of six months or less
90 days for leases longer than six months
Agents and landlords alike will need to be extremely organised to meet these timelines—especially when planning sales, renovations, or occupancy changes.
4. Pet Approvals: Silence Means Yes
From 19 May 2025, tenants will be able to apply to keep a pet—and landlords must reply within 21 days. If you don’t respond? The pet is automatically approved.
You’ll only be able to decline a request for very specific, legally accepted reasons, and if your property is under strata, you’ll also need to seek approval from the committee. Importantly, strata can’t unreasonably refuse either.
5. Rent Payments: No More Third-Party Fees
You must offer tenants a fee-free electronic payment method, such as bank transfer or BPAY. From later this year, if a tenant requests to pay via Centrepay, you’ll need to support that option too—though you won’t be required to register unless it’s requested.
Our agency already offers direct debit at no cost to landlords, but compliance here is key—especially as more regulations come into play.
Other Notable Changes
Some rules are already in effect:
“No pets allowed” can no longer be advertised.
You can’t charge applicants extra fees (such as for lease prep or background checks).
Rent increases are now capped to once every 12 months, even on lease renewals with the same tenant (unless it’s social housing).
More information
You can find more information about the changes on Fair Trading nsw.gov.au/rental-reforms.
Why This All Matters
These changes—particularly around tenancy terminations and re-letting—represent one of the biggest shifts in landlord legislation in recent years. They’re designed to protect tenants, but the reality is they add complexity, compliance, and risk for property owners.
That’s why it’s absolutely imperative to work with a property manager who knows the law inside out, and who’s not afraid to tell you the facts—even when they’re inconvenient.
It’s easy to fall into the trap of working with an agent who tells you what you want to hear. But in a climate like this, what you really need is an expert who’ll tell you what you need to hear—and who’ll make sure your investment is protected every step of the way.
At the end of the day, the right agent doesn’t just manage your property. They safeguard your legal standing, your income, and your peace of mind.
Need help navigating the changes?
We’re here to make sure your property remains compliant, profitable, and professionally managed. Get in touch today to find out how we can support you through the May 2025 reforms and beyond.