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Tenants will see rental rule changes in a few days! Here's what renters need to know

Danielle F.
By Danielle F.
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With the cost of living crisis, many Australians have resorted to renting property to call their home.

However, renting has become increasingly tough thanks to skyrocketing rents, fierce competition for properties, and a lack of affordable options.

After years of calls for reform, significant changes to laws are about to come into effect in a few days.


Many Aussies have found themselves in stressful situations to keep a roof over their heads.

One of the most significant changes for tenants was the reality of 'no grounds' evictions.

Over recent years, landlords could tell tenants to leave the property at the end of a lease or even during a periodic agreement without giving any reason.


compressed-pexels-rental property.jpeg
Tenants and landlords in New South Wales should observe these new rules next week. Image Credit: Pexels/Ivan Samkov


Landlords only had to provide the required notice.

This rule meant renters could be forced out simply for requesting repairs, asking about a pending rent hike, or for no valid reason at all.

For over two million renters in New South Wales, there's big news on the horizon.

These changes could make a real difference to their rights and security.


Starting Monday, 19 May, that's all about to change thanks to new laws designed to give tenants more stability, security, and choice.

Landlords now need a valid, legal reason to evict a tenant.

Along with the notice, they need to provide evidence to back the eviction up.

What counts as a valid reason for eviction?

According to the Tenants' Union of NSW, landlords could only evict tenants for the following reasons:
  • Major renovations, repairs, or demolition that require tenants to move out
  • The property will no longer be used as a rental
  • The owner or their family wants to move in
  • The landlord is selling the property and needs it vacant
  • Tenants are no longer eligible for affordable, transitional, or student housing
  • The property is required for a key worker under a government scheme
  • Breach of agreement by the tenant
  • The end of an employee or caretaker agreement
This change should be a massive win for renters, who could now assert their rights confidently without the fear of losing their homes.


Another big change in renter rules revolves around pets.

Landlords could refuse pets for any reason or no reason at all.

Starting Monday, tenants should have the right to request permission to keep a pet.

Landlords could only refuse pet permissions for specific, valid reasons.

Valid reasons for refusing a pet include:
  • The property's suitability for pets (e.g., fencing, space)
  • Allowing the pet would mean too many animals on the property
  • Possible damage beyond the bond amount
  • The landlord lives at the property
  • Possible breach of laws, by-laws, or council rules
  • Refusal of reasonable conditions set by the landlord
Landlords must respond to the tenant's request in writing within 21 days, or consent should be automatically granted.

Landlords also cannot increase the rent or bond for tenants having a pet, but they can set reasonable conditions for keeping pets on the property.


Have you ever been stung by extra fees just for paying your rent?

Under the new rules, landlords and agents must provide at least one fee-free, accessible way to pay rent, such as bank transfers or Centrepay.

Tenants forced to pay by cheque or through real estate offices with cash should be able to transact more efficiently with the upcoming change.

In addition, the Portable Bonds Scheme is scheduled to roll out later this year.

This scheme should let tenants transfer their existing bonds to a new property instead of saving for a second bond while waiting for their refund.

The Portable Bonds Scheme should make moving houses less stressful and more affordable for tenants.

For many renters, these changes are a long time coming.

Whether it's for a retiree downsizing their home, a grandparent helping the kids out, or just someone who wants to feel secure in their rented house, these new rules are worth celebrating.
Key Takeaways

  • Major changes to NSW tenancy laws will begin on Monday, 19 May, effectively giving two million renters more rights and security.
  • The new rules should scrap 'no grounds' evictions, meaning landlords will need valid reasons and proof to evict tenants.
  • Tenants should also have the right to request pets in their homes, and landlords can only refuse based on specific reasons.
  • Landlords and agents must now provide tenants with a genuine, fee-free rent payment option, and a Portable Bonds Scheme will soon allow tenants to transfer bonds to a new property.
Have you been affected by unfair rental practices in the past? Would you like to see similar changes rolled out in your state or territory? We would love to hear your stories and thoughts about these changes in the comments section below.
 
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All I can say, is, there are good landlords & bad ones. It's the same with tenants.

A couple of my workmates, seems like about 45-50 yrs ago, came into a bit of fortune. In their wisdom they bought investment houses on the Central Coast, NSW, one being in the Norah Head region.

With that experience, they sold out. As per usual, holes in the walls plus other damage as well.

As one said, "Not worth the bloody trouble".

Another workmate where his wife was a business owner where they bought houses to rent out.
He & wife, self managed with leases etc.

They didn't experience too much strife as another of our mates used to be his "Handy Man" for any "Quick" fixes which had to be done. That way he had a very close eye on how their investments were kept by the tenants.

As they said, if the tenants looked after the places, everything was OK, no probs at all.
 
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novezar said:
All I can say, is, there are good landlords & bad ones. It's the same with tenants.

A couple of my workmates, seems like about 45-50 yrs ago, came into a bit of fortune. In their wisdom they bought investment houses on the Central Coast, NSW, one being in the Norah Head region.

With that experience, they sold out. As per usual, holes in the walls plus other damage as well.

As one said, "Not worth the bloody trouble".

Another workmate where his wife was a business owner where they bought houses to rent out.
He & wife, self managed with leases etc.

They didn't experience too much strife as another of our mates used to be his "Handy Man" for any "Quick" fixes which had to be done. That way he had a very close eye on how their investments were kept by the tenants.

As they said, if the tenants looked after the places, everything was OK, no probs at all.
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That is exactly right. There's only one problem.
As an ex landlord I can tell you that there are far more bad tenants than good.
Tenants have too many rights. It once took us 18 months in court to get rid of one tenant who had completely wrecked our property, and during all this court process she was not paying any rent.
She knew how to play the system, as many of these tenants do.
You eventually win the case but it does you no good as these people.have no funds to repay the cost of damages and unpaid rent.
I am also against the new rule regarding pets. The owner of the property should be able to stipulate no pets without having to have any other reason than it is THEIR property.
We have given permission for one dog in the past only to find the neighbours complaining about three. No dogs in the house, they take no notice of that.
We have had to have one house treated for fleas and another we had to have the carpets replaced as the dog was not house-trained. Bonds nowhere near cover the cost of damages in most places.
I would never ever consider being a landlord again.
Any landlord who has a good tenant should give them reasonable rent and treat them like gold. They are few and far between.
 
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  • Tougher new laws making giving the owner of the property less control over their property is going to discourage people from renting their property out - i.e. fewer rentals could become available.
  • "Portable bonds" - the bond is in trust until the renter moves out and the landlord/owner has had a chance to inspect the property and effect whatever repairs may be necessary to make the property habitable for the next tenant. The cost of those repairs - from cleaning the property if the tenant has left it filthy to repairing damage to the property - is deducted from the bond before it is returned to the tenant. So a tenant's bond can't be automatically shifted from one rental property to another!
  • Pets - a privilege, NOT a right at the best of times. (I can't imagine not having one, but it is my responsibility to be able to look after my pet!). Savage dogs, puppy farmers, people who keep entire tom cats in the house, people who keep multiple dogs or cats but don't keep the premises clean... There are a lot of reasons for a landlord not wanting pets in the place. So if the tenant has the right to have a pet, the landlord MUST have the right to stipulate how many, what sort and how they're kept (e.g. pet rats must be kept in cages!) and have the right to demand a special bond to cover the costs of undoing any damage by the pet (see remarks about entire tomcats - the stink of their spray on plasterboard walls can only be reduced by replacing the plasterboard!)
 
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meighLeigh said:
  • Tougher new laws making giving the owner of the property less control over their property is going to discourage people from renting their property out - i.e. fewer rentals could become available.
  • "Portable bonds" - the bond is in trust until the renter moves out and the landlord/owner has had a chance to inspect the property and effect whatever repairs may be necessary to make the property habitable for the next tenant. The cost of those repairs - from cleaning the property if the tenant has left it filthy to repairing damage to the property - is deducted from the bond before it is returned to the tenant. So a tenant's bond can't be automatically shifted from one rental property to another!
  • Pets - a privilege, NOT a right at the best of times. (I can't imagine not having one, but it is my responsibility to be able to look after my pet!). Savage dogs, puppy farmers, people who keep entire tom cats in the house, people who keep multiple dogs or cats but don't keep the premises clean... There are a lot of reasons for a landlord not wanting pets in the place. So if the tenant has the right to have a pet, the landlord MUST have the right to stipulate how many, what sort and how they're kept (e.g. pet rats must be kept in cages!) and have the right to demand a special bond to cover the costs of undoing any damage by the pet (see remarks about entire tomcats - the stink of their spray on plasterboard walls can only be reduced by replacing the plasterboard!)
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You are so right. There will be less and less houses for rent as tenants are given more and more rights.
Perhaps the Tenancy Board who dream up all these rules would like to cover the costs incurred by landlords when these tenants wreck them.
Financially I have been better off putting my money on fixed term in the bank, despite the lousy interest rates. No more stress.
More should be done about bad tenants in government housing also. I know of one single mum who has trashed three houses and is ready to move into her fourth. With all the thousands on the waiting list why are these people automatically given another, while the taxpayer foots the bill over and over for repairs and other people linger on the waiting list for years
A very old friend of mine was on the waiting for over 15 years. For many of those years she lived with me and eventually passed away at 92 never ever having been offered a place.
 
mylittletibbies said:
That is exactly right. There's only one problem.
As an ex landlord I can tell you that there are far more bad tenants than good.
Tenants have too many rights. It once took us 18 months in court to get rid of one tenant who had completely wrecked our property, and during all this court process she was not paying any rent.
She knew how to play the system, as many of these tenants do.
You eventually win the case but it does you no good as these people.have no funds to repay the cost of damages and unpaid rent.
I am also against the new rule regarding pets. The owner of the property should be able to stipulate no pets without having to have any other reason than it is THEIR property.
We have given permission for one dog in the past only to find the neighbours complaining about three. No dogs in the house, they take no notice of that.
We have had to have one house treated for fleas and another we had to have the carpets replaced as the dog was not house-trained. Bonds nowhere near cover the cost of damages in most places.
I would never ever consider being a landlord again.
Any landlord who has a good tenant should give them reasonable rent and treat them like gold. They are few and far between.
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We rented a house once that we didn't know was infested with cockroaches. All the kitchen walls were covered every night.We soon left
 
Old timer said:
What a heap of garbage, so a landlord can evict you because they want to sell but what stops them from renting it again or he wants to move in himself or move in a family member but than he rents it out again for higher rent, who the hell checks on all these scams.
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I agree, it's not going to really change things

Is the government going to chase up every eviction to make sure the landlord is being honest ?

Then if they do then the taxpayer will be the one to foot the bill.
 
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We had a house in Rockdale Sydney that we rented our for a few years. During that time we had 3 tenants. We would do yearly inspections to see what maintenance needed to be done.
After the first two tenants moved out we never needed to do a thing unless painting ect was due. They even left the gardens beautiful.

The third tenant was there for only a year and they moved out.
We were shocked when we inspected. The damage was
Every blind damaged

3/4 of the windows were either cracked or completely smashed

The carpet was ripped up in places

The kitchen cupboard doors were either ripped off the hinges or had holes in them.

The ceiling in the loungeroom and family room plus a bedroom were hanging down. Apparently they were storing things in the roof

The grass hadn't been cut in the whole tine they were there, everything was overgrown.

The neighbours told us they were neighbours from hell.

When we contacted the agent we were shocked to find out they were given their whole bond back.

We never rented it out again , instead we sold it and the buyers knocked down and rebuilt
 
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Suzanne rose said:
We had a house in Rockdale Sydney that we rented our for a few years. During that time we had 3 tenants. We would do yearly inspections to see what maintenance needed to be done.
After the first two tenants moved out we never needed to do a thing unless painting ect was due. They even left the gardens beautiful.

The third tenant was there for only a year and they moved out.
We were shocked when we inspected. The damage was
Every blind damaged

3/4 of the windows were either cracked or completely smashed

The carpet was ripped up in places

The kitchen cupboard doors were either ripped off the hinges or had holes in them.

The ceiling in the loungeroom and family room plus a bedroom were hanging down. Apparently they were storing things in the roof

The grass hadn't been cut in the whole tine they were there, everything was overgrown.

The neighbours told us they were neighbours from hell.

When we contacted the agent we were shocked to find out they were given their whole bond back.

We never rented it out again , instead we sold it and the buyers knocked down and rebuilt
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I know exactly how you feel. We had three tenants like that. One year we had a $137,000 capital loss. Certainly made a big dent in our retirement savings.
And they wonder why there aren't enough rentals.
Makes you wonder how some of these ferals were dragged up.
 
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Suzanne rose said:
Landlords will still evict and get around it.
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When the Wuhan flu struck, some Sydney-siders were looking for a "tree change."
The city owner of our provincial unit gave us 3 months to move out after he bought it "with intention to live in it himself."

We could not find suitable local accommodatiuon to rent, and even searched within 50km of the provincial municipality in which we resided. Many people panicked in those days and had themselves injected with an experimental gene-altering product, which today has been found ineffective and unsafe.

Risible.
But I digress.

Despite attending open days and submitting applications (as suggested by agents even prior to inspection) we were unsuccessful in securing a unit locally.
We did find a lovely place in an interstate capital, and moved.

A few months later - out of curiosity - I did a search for our old unit.
I found the place was given new carpets and an air-conditioner ... but nothing more.

Was amazed (at the time) to see the place back on the market with a 30% increased rental tag.
Fast forward one year, and it was again advertised with a further 10% increase, making a total of 42% asking price for rent in those ensuing months.

What is worrying now, is the increases that HOME OWNERS are facing, as rates and taxes are soaring for many.
 
Squizzy1 said:
Glad I no longer rent to anyone, it is a thankless job full of pitfalls and heartache, not worth the hassle.
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As an ex-landlord, I didn't have issues with the tenant we had.
You can be lucky ... or not ... with tenants.
Ours was a single dad school teacher in Bundaberg, and we held his rent unchanged through two lease renewals.
Why?
Because he was such a good tenant.
But I agree with what you are saying - some tenants are dirty, destructive, and late paying.
Some agents will rent to anyone - even lying to owners about the bonafides of renters just to get the place rented out.
 
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novezar said:
All I can say, is, there are good landlords & bad ones. It's the same with tenants.

They didn't experience too much strife as another of our mates used to be his "Handy Man" for any "Quick" fixes which had to be done. That way he had a very close eye on how their investments were kept by the tenants.

As they said, if the tenants looked after the places, everything was OK, no probs at all.
Click to expand...
What a great idea - the undercover inspector!
Fantastic.
Landlords: Take note!
 
A good tenant with a half-intelligent landlord/rental agent doesn't get evicted, or hit with unfair fees. This is spoken by a tenant who has been asked to return to rent a property! My ethos has always been you look after valuable assets. As a renter, the valuable asset was a property I could afford in a place where I needed it (i.e. within reasonable commuting distance to work.) I had cats inside (with the owner's permission) so - for the cats and my comfort - I was rigorous with flea control, waste control etc. If I broke something, I had it fixed at my own cost. Just as if I broke something I borrowed I fixed or replaced it at my own cost. I don't understand people who do not!
I own my home now, and am not tempted to consider investing in a rental property. The laws already favour the tenants too heavily! If a tenant doesn't pay the rent in full, and is taken to court and convinces the court that s/he can't afford it, then the landlord has to accept whatever the court deems the tenant can afford. Ignoring the fact the tenant signed a contract to pay (for example) $250/week. The tenant pleads poverty and can only afford $20/week... so the landlord has to put up with that. Friends of ours were caught with that in Darwin.
"Neither a borrower nor a lender be" (Polonius, Hamlet, William Shakespeare) - because its too damned expensive if one side of the transaction is an arsehole. Which happens all too often.
 
Landlords can lie. My family and I were evicted from a home we’d been in for three years. This was smack bang in the middle of Covid. We were told the home was undergoing major renovations and would be sold. It took us nearly six weeks to find another place and three weeks after the move we saw the home advertised to rent for $250 more than we were paying. The house had not been renovated or improved upon in any way. It was snapped up pretty quickly by a large Asian family.
 
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