The rental landscape in NSW is undergoing a major transformation following the passing of the Residential Tenancies Amendment Act 2024 (NSW) (RTA Act) in October 2024.
Here’s what you need to know to stay ahead of these pivotal updates and ensure compliance with the new legislation:
Rental changes already in force
RENT INCREASES : Rent increases are now limited to once every 12 months, regardless of whether the lease is a fixed-term or periodic agreement.
- Subsequent agreements between the same parties are treated as a continuation of the original agreement to prevent attempts to bypass this restriction.
- The first rent increase can only occur a minimum of 12 months after the tenancy commenced.
PROHIBITED CHARGES : It’s now prohibited to charge prospective tenants for background checks when applying for a tenancy or for the preparation of a lease.
RENTAL BOND BOARD : The NSW Rental Commissioner is now allowed to sit on the Rental Bond Board. The Rental Bond Board serves as an independent custodian of rental bonds and plays a critical role in tenant-landlord financial interactions.
Stay Informed! Additional Reforms yet to come into force
The following changes have not yet commenced but they will take effect on a date yet to be announced (except for the rules about collecting eviction data which are due to begin on or before 1 July 2025):
- You will no longer be able to terminate a lease on No Grounds.
- There will be new prescribed grounds for termination introduced.
- You will not be able to terminate a lease at the end of the fixed term unless a prescribed ground for termination applies.
- Changes to the laws on keeping pets in properties.
- New requirements for the collection of eviction data.
We’ll keep you informed as soon as we know when the enactment dates for these remaining reforms are confirmed.
Coming soon: Resources to help you stay ahead
We’re committed to supporting you through these changes by offering clear, practical resources to answer your key questions. Look out for:
- Webinars and information videos: Comprehensive overviews of the reforms.
- Training Day: Hands-on workshops to guide you through compliance.
- Other useful resources to help you implement these reforms.
Stay tuned for updates on these initiatives!
By staying informed, you can uphold compliance and maintain strong landlord and tenant relationships.