Major rental law takes effect on 19 May—how will it affect you?

The past few years have been a rollercoaster for Australia’s more than two million renters. 

With rental prices soaring, vacancy rates at record lows, and competition for homes fiercer than ever, simply securing a roof over your head can feel like a full-time job. 

But for many, the stress doesn’t end once you’ve signed the lease. The ever-present threat of eviction—sometimes for no reason—has left countless tenants feeling vulnerable and powerless.

But change is on the horizon. From 19 May, new tenancy laws will be enacted in New South Wales (NSW), promising to tip the scales a little more in favour of renters. 

These changes cover everything from eviction rules to pet ownership and payment options, and they’re set to make a real difference to the lives of millions.

Until now, landlords in NSW have been able to evict tenants for any reason—or no reason—simply by providing the required notice. This so-called ‘no grounds’ eviction has been a source of anxiety for many renters, who often feel unable to request repairs or challenge unfair rent increases for fear of being shown the door.

From 19 May, that’s changing. Landlords will need a valid, legal reason to evict a tenant and have to provide evidence to back it up. 

According to Elouise Parrab from the Tenants’ Union of New South Wales, this seismic shift in renters’ rights has been ’50 years coming’.

Valid reasons for eviction will now include:

• Significant renovations/repairs or demolition of the property, which means you need to move out of the property
• A change in the use of the property, in situations where the property will no longer be used as a rental
• The owner or their family intends to move into the property
• The landlord proposes to sell the property
• The renter is living in affordable or transitional housing and is no longer eligible for that housing program.
• The renter lives in purpose-built student housing and is no longer enrolled as a student.e
• The premises are part of the NSW Government’s key worker housing scheme and are needed to house a priority key worker.
• Breach by the tenant (such as non-payment of rent)
• Sale of premises requiring vacant possession
• The agreement is an employee or caretaker agreement, and the employment or caretaker arrangement has ended.
  
  This change means renters can finally feel more secure in their homes and request repairs or dispute rent increases without the constant fear of being evicted on a whim.

Pet ownership: A fairer go for animal lovers

For many Australians, pets are part of the family. But until now, landlords could refuse a tenant’s request to keep a pet for any reason—or no reason at all. That’s about to change.

From 19 May, tenants have the right to request permission to keep a pet, and landlords can only refuse for specific, valid reasons. These include:

• Allowing the animal would lead to an unreasonable number of animals at the property
• The property is unsuitable for the animal because fencing is inadequate, there is not enough open space, or the property would not allow the animal to be kept humanely.
• Keeping the animal would likely cause damage that would cost more than the rental bond.
• The landlord lives at the property,
• Keeping the animal would violate a law, regulation, local council order, by-law or community rule,
• The tenant has not agreed to a reasonable condition proposed by the landlord.

Landlords must respond in writing within 21 days, or consent is automatically granted. Significantly, they can’t increase the rent or bond just because you have a pet.

This is a massive win for renters who want to adopt a furry friend, and brings NSW in line with other states that have already modernised their pet policies.

Fee-free rent payment options

Another common gripe among renters has been the lack of convenient, fee-free ways to pay rent. 

While the law technically requires at least one fee-free option, in practice, this often means paying by cheque (who still uses those?) or going to the real estate office to pay cash.

From 19 May, landlords and agents must provide a genuinely accessible, fee-free way to pay rent, such as bank transfer or Centrepay. This will save renters time and money and make managing payments more manageable.

While it will not take effect immediately, another major change is coming later this year: the Portable Bonds Scheme. 

This will allow tenants to transfer their existing bond to a new rental property rather than scraping together a second bond while waiting for the first to be refunded. This will be a welcome relief for anyone who’s ever moved house and felt the financial pinch.

NSW is catching up with other states like Victoria, which have banned ‘no grounds’ evictions and introduced pet-friendly policies. However, each state’s laws differ, so if you’re renting outside NSW, it’s worth checking your local rules.

If you’re an NSW renter, ensure you know your new rights. If you receive a notice to vacate after 19 May, check that it meets the new requirements. 

If you want a pet, follow the new process and keep all communication in writing. And if you’re having trouble with your landlord or agent, organisations like the Tenants’ Union of NSW can offer advice and support.

For more information on your rights as a renter, visit the Tenants’ Union of NSW website or contact your local tenants’ advice service.

Are you a renter affected by ‘no grounds’ evictions? Or are you concerned about how the new rules will work in practice? We’d love to hear your thoughts and experiences—share your story in the comments below.

Also read: One ‘high-earner’ renter’s shocked as prices soar to $1,200 a week