New NSW residential tenancy laws: what landlords need to know
The NSW Residential Tenancies Amendment Bill 2024 will reshape rental laws between now until mid-2025, bringing in stricter rules around lease terminations, rent increases, and pet approvals. These changes make it critical for landlords to stay up-to-date - or risk fines, disputes, and unwanted vacancy periods.
Here’s what’s changing and how Evoak ensures you stay compliant and protected.
What's changing
1. No more no-grounds terminations
Currently, a landlord can terminate a periodic (non-fixed term) agreement with 90 days notice without providing a reason.
This will no longer be permitted. You'll need a valid reason for termination, for example:
Breach by the tenant
Selling the property
Major renovations or demolition
The landlord or their immediate family is moving in
Exclusion periods of 6 or 12 months apply after termination. This means if your circumstances change after a tenant has moved out, you'll need to get special permission to re-let the property.
Fines of up to $11,000 apply for non-compliance.
Info for Evoak owners and residents:
While this may seem like a big change, it brings NSW in line with other states and many western countries. In most cases, landlords only become concerned when a lease is breached, and the new rules still allow for termination in those situations.
2. Pets are harder to refuse
Current law: Tenants can apply to have a pet, however this is at the owner's complete discretion.
Updated law: Tenants will be able to apply to keep pets using a standard form, and landlords will have 21 days to respond, otherwise approval will be granted by default. Refusals will be allowed only for specific reasons, such as:
The property being unsuitable (e.g., no fencing or not enough open space)
The pet potentially causing damage costs greater than the rental bond
Conditions like professional carpet cleaning can be imposed but rent or bond increases are prohibited.
Info for Evoak owners and residents:
Evoak will manage this process for you, protecting your property while maintaining tenant goodwill.
3. Mandatory free rent payment options
Currently, you must offer your tenants a free rent payment method that's 'reasonably available' - which doesn't exclude more traditional payment methods like cash or cheque.
From now on, landlords must provide a free payment option using an 'electronic bank transfer method' and offer Centrepay (via Centrelink) if requested. Many agencies rely on BPAY or direct debit through third-party apps, but it’s unclear if these will meet the new requirements.
Info for Evoak owners and residents:
At Evoak, we accept rent payments directly into our trust account without relying on 3rd party apps that charge fees. This means the new rules won’t impact our owners or residents.
4. No more tenant application fees
Previously: Some rental application platforms allowed tenants to pay a fee for additional background checks when applying for a property - these fees weren't regulated.
Current law (since 31/10/24): These fees are now banned.
Info for Evoak owners and residents:
This change aligns with the growing focus on transparency and fairness in the rental application process. Verifying income and securing positive references from previous landlords or agents remain highly effective ways to assess tenant suitability. With increasing attention on data security and privacy, the types of information these platforms collect are also likely to face further restrictions in the future.
What you need to do
If you're with Evoak
Rest assured, we're already prepared to implement these changes as they go live - you don't need to do anything.
If you're with another property manager
The new laws bring stricter compliance requirements and higher penalties for non-compliance, making outdated processes a serious liability. It’s essential to ensure your property manager is up to date with the changes. Missteps, particularly around termination rules or pet applications, can lead to financial losses and strained tenant relationships.
Questions to ask your property manager:
Have you updated lease agreements to comply with the new laws?
How are you managing termination notice periods and exclusion periods?
Are your rent payment systems compliant with the new rules?
What is your process for handling and approving pet applications?
If you’re unsure about their answers or don’t feel confident in their approach, it may be time to explore a better alternative. Evoak is here to help.
Considering your current management arrangements?
If you’re unsure whether your property is being managed in compliance with the new legislation, it’s worth reassessing your options. Choosing a proactive team that stays ahead of legal changes can safeguard your investment and streamline the management experience.
At Evoak, we’re already updating lease agreements training our team to handle these reforms seamlessly. From compliance to pet approvals and lease terminations, we take care of every detail so you can focus on the rewards of property ownership.
Switching to Evoak is simple - see our blog post here. Or contact us today for a confidential consultation.
