The NSW Residential Tenancies Amendment Bill 2024 (RTA Bill) has recently passed through both houses of Parliament and is awaiting final assent. This Bill proposes significant changes to rental laws across the state, and while this might sound overwhelming, rest assured that we’ll keep you informed and help you navigate any adjustments smoothly.

Here are the high-level changes and how they could affect your rental property:

Termination Notices
One major proposed change involves the abolition of “no grounds” termination notices for periodic agreements. If passed, landlords will only be able to terminate a tenancy based on specific grounds, such as:

• Breach of tenancy agreement
• Proposed sale, significant repairs, or demolition
• Tenant ineligibility for specific housing programs
• Premises needed for key worker accommodation
• Landlord or family intending to reside on the property

These changes aim to provide clarity and structure around tenancy terminations, ensuring fair and consistent grounds across NSW.

Changes to Pet Regulations
If approved, tenants will be allowed to keep pets in rental properties, provided they submit a formal application using an approved form. You’ll have 21 days to respond to a pet request; if no response is given, consent will be automatically granted. Consent can only be refused for specific, reasonable reasons, such as property suitability or potential significant damage.

While the legislation does provide that certain “reasonable conditions” can be attached to pet consent (like end-of-lease carpet cleaning or fumigation), it also defines conditions that are “unreasonable” (e.g., increasing rent or bond due to pet ownership). Should there be any disagreements, disputes can be resolved through the NSW Civil and Administrative Tribunal (NCAT).

Other Notable Changes
Additional proposed changes include:

• Rent Increase Frequency: Limited to once every 12 months.
• Payment Options: Tenants must be offered free electronic payment options, including Centrepay and approved bank transfers.
• Application Fees: Landlords and agents will no longer be able to charge prospective tenants for background checks or lease preparation.

Furthermore, some changes, such as certain rent reforms, are expected to come into effect upon assent, while others are anticipated to commence by July 2025. We will keep you informed on specific dates and details as the RTA Bill progresses.

Next Steps

There’s no need to worry about these changes; our team is here to help. We’ll guide you through any necessary adjustments to ensure compliance and a seamless experience for both you and your tenants.

For now, rest assured that we are closely monitoring these developments and will provide timely updates and guidance to keep you informed and prepared.

Stay tuned for further updates – we’re here to support you every step of the way!

For the full Residential Tenancies Amendment Bill 2024 click here.