NSW Rental Law Reforms: What MOVABLE Landlords Need to Know

The NSW Government is introducing landmark reforms to the state’s residential rental laws, designed to create a fairer, more balanced system for both landlords and tenants. These changes aim to improve transparency, consistency, and the rental experience overall.

To help you stay ahead, we’ve summarised what’s already changed and what’s coming next — all tailored for MOVABLE landlords across Newcastle and the Hunter region.

What’s Already Changed?

1. Tenant Check Fees at Lease Start

Landlords and agents can no longer pass on charges to tenants for processing applications — including background checks. This change reduces upfront costs for tenants and simplifies the lease-start process.

2. Rent Increases Now Capped at Once Per Year

  • Whether a lease is fixed-term or periodic, rent can now only be increased once every 12 months. This rule applies to all new and existing tenancy agreements.
  • It’s essential to plan ahead and review market conditions thoughtfully before proposing a rent adjustment – something our team will guide you through to ensure you always make a good move.

Coming into Effect: 19 May 2025

1. Ending a Tenancy – Reasons Now Required

  • You will no longer be able to end a lease “without grounds.”
  • For both fixed-term and periodic agreements, landlords must provide a valid reason for termination — such as breach of agreement, sale of the property, or the landlord needing to move in. This increases tenant security and requires landlords to be clear and compliant in their notices.

2. Reletting  Restrictions

  • Where a landlord or agent ends a lease for certain reasons, there will be a period where a new tenancy agreement cannot start. This is known as a re-letting restriction.

    The reason for ending the tenancy will determine the length of the re-letting restriction. Refer to the table before for more information.

    Reason for the tenancy ending

    Re-letting restriction

    Premises no longer to be used as a rented residential premises for 12 months

    12 months

    Proposed sale of premises

    6 months

    Landlord or family member to reside at the premises

    6 months

    Demolition of premises

    6 months

    Significant renovations or repairs

    4 weeks

3. Extended Notice Periods

  • The amount of notice generally required will be:

    • for a periodic lease: at least 90 days’ notice.
    • for a fixed term lease of 6 months or less: at least 60 days’ notice, and the termination date cannot be before the end of the fixed term
    • for a fixed term lease of more than 6 months: at least 90 days’ notice, and the termination date cannot be before the end of the fixed term.

    There are some grounds (such as a breach of the agreement) that have a shorter notice period.

4. Mandatory Fee-Free Rent Payment Option

You’ll need to offer at least one method of rent payment that doesn’t attract fees — such as direct bank deposit. If using third-party platforms like DEFT or RentPay, a no-cost alternative must also be clearly made available. Please note, this is already on offer at MOVABLE.

5. Simplified Pet Approvals

Tenants will soon be able to request pet approval through a standardised process. Landlords must respond within 21 days, and can only refuse on reasonable grounds — such as strata rules or potential damage. If no response is provided within the 21-day period, the pet request is automatically approved.

What You Should Do Now

If you’re a landlord with MOVABLE, there’s no need to panic — but now’s the time to get informed. See below MOVABLE’s Rental Law Youtube Series – Where we break down each major reform in short, practical videos featuring our expert property management team.

Reach out to your property manager at MOVABLE — we’re here to walk you through every change, ensure you’re compliant, and make sure your property continues to perform at its best!

MOVABLE’s Rental Law Youtube Series:

Vivien Rendina | Business Development Manager  |  0425 302 776

Catherine Russell | Business Development Manager  |  0488 775 544