The Residential Tenancies Amendment Bill 2024 has been approved by the NSW Parliment and expected to come into effect in early 2025. While these changes in regulation are aimed at enhancing tenant protections, it raises important questions: are property owners’ rights being eroded? Is the NSW Government overstepping by increasing its involvement in landlords’ decision-making?
We take a high level look at the key proposals and what they mean for landlords.
Tighter Restrictions on Termination of Tenancies
One significant change is the removal of “no grounds” termination notices. Under the proposed rules, landlords will only be able to end tenancies on specific grounds, such as major renovations, selling the property, or personal occupancy by themselves or their immediate family. The NSW Government argues this provides greater stability and security for tenants.
However, landlords may face new administrative burdens. For instance, if circumstances change after issuing a termination notice (e.g., renovations are cancelled or a family member no longer needs to move in), landlords must seek permission from NSW Fair Trading to re-list the property on the rental market, or they risk fines.
Additionally, notice periods are increasing. Ending a fixed-term lease will now require 90 days’ notice (up from 30 days), or 60 days for leases shorter than six months.
Why it matters:
These changes could reduce landlords’ flexibility. Imagine planning renovations only for them to fall through or take less time than expected—you’ll now need formal approval to re-list your property. It’s a shift that underscores the importance of strategic planning and professional guidance.
Annual Rent Increases
To provide tenants with rent stability, the Bill restricts rent increases to once every 12 months, regardless of lease length. While this brings predictability for tenants, it could limit landlords’ ability to adjust rents in line with market trends or rising costs.
Why it matters:
Landlords will need to carefully consider rental pricing at lease renewal time to avoid undercutting their property’s market value. With fewer opportunities to adjust rents, setting the right price becomes more critical than ever.
Pets in Rental Properties
The Bill also includes a more regulated approach to pet approvals. Tenants will have the right to apply for pet permission, and landlords can only refuse under specific conditions, such as overcrowding or potential property damage. If no response is provided within 21 days, approval is automatically granted.
Why it matters:
While simplifying the process for tenants, this reform may lead to increased maintenance concerns for landlords. However, many responsible pet owners are open to providing a pet bond—something currently prohibited under the law. Understanding your rights as a landlord and setting reasonable, legally compliant conditions can help safeguard your property while maintaining a positive relationship with tenants.
Final Thoughts
These proposed reforms reflect a stronger focus on tenant protections, which may present challenges for landlords but also opportunities to refine property management practices.
At Rightside, we’re here to help you navigate these changes, ensuring your property remains compliant and competitive. We’ll keep you informed as more details emerge and support you in maximising your property’s value.
Have questions or concerns? Reach out to our team—we’re here to help.
