Keeping up with rental regulations in New South Wales (NSW) can be tricky, especially with the upcoming changes. Recently, states like Queensland (QLD) and Victoria (VIC) have made significant updates to their rental laws, particularly around lease terminations, pets in rentals, and rent increases. It’s expected that NSW will follow suit, making it more important than ever for landlords to stay informed and have a reliable property manager in place.
At Mclaws Property, we specialise in helping landlords manage their properties effectively, ensuring you’re prepared for both current regulations and any upcoming changes.
Current NSW Renting Rules: Key Points to Note
The current renting rules in NSW aim to balance the rights of landlords and tenants. These rules cover a wide range of issues, with lease terminations, pet approvals, and rent increases being some of the most important.
1. Ending a Lease
Landlords and tenants in NSW must follow specific procedures when ending a lease. For a fixed-term agreement, landlords need to provide at least 30 days’ notice if the lease is due to expire. If the lease continues beyond the fixed term, 90 days’ notice is required for termination.
A contentious rule is the “no grounds” termination, which allows landlords to end a lease without stating a reason. While this option still exists in NSW, both VIC and QLD have already removed it, requiring landlords to provide specific reasons for ending tenancies. With growing calls for NSW to introduce similar reforms, landlords may soon be required to give a reason when asking tenants to move out.
This expected shift highlights the importance of working with a property manager who can navigate these legal requirements, ensuring compliance while managing tenant relationships professionally.
2. Pets in Rental Properties
At the moment, NSW landlords can refuse pets in rental properties by stating this clearly in the lease agreement. However, changes in other states have made it harder for landlords to reject pet requests. In VIC and QLD, landlords can only refuse pets for valid reasons, such as potential health risks or if the property isn’t suitable for pets.
With the trend moving towards more pet-friendly policies, NSW may soon follow suit, limiting a landlord’s ability to refuse pets. A property manager can assist in setting up clear guidelines for tenants with pets, protecting your property while keeping tenants happy.
3. Rent Increases
Rent increases in NSW must follow specific rules. For fixed-term agreements longer than two years, landlords can raise the rent once every 12 months. For periodic agreements, rent can be increased at any time, but landlords are required to give tenants at least 60 days’ notice.
The increase must reflect current market conditions, and tenants have the right to challenge unreasonable increases through the NSW Civil and Administrative Tribunal (NCAT). A rent increase must be reasonable and in line with current market rates. The NSW government has also stated that if there is “no written agreement, a landlord cannot increase the rent during the first six months.”
To maximise rental returns while complying with regulations, regular rent reviews are essential. This is another area where having an experienced property manager can make all the difference.
Anticipated Changes for NSW
With VIC and QLD already leading the way, it’s expected that NSW will soon introduce more stringent rules regarding lease terminations and pets in rental properties. Landlords may no longer be able to end tenancies without a specific reason, and they could face tighter restrictions around refusing pets.
These changes will bring a shift in how landlords manage their properties, making it crucial to stay informed and prepared. Partnering with a skilled property manager will help you navigate these changes smoothly, ensuring that your properties remain compliant while continuing to generate solid returns.
Why a Property Manager is Key
As NSW rental laws become more regulated, property owners will need to manage their investments with greater attention to legal detail. At Mclaws Property, we provide expert guidance to keep your properties compliant and protect your interests. Whether it’s adjusting leases to meet new legal requirements, managing tenant requests for pets, or staying on top of rent reviews, we’re here to make the process as smooth as possible.
With our expertise of the Hurstville market, we offer tailored services to help landlords successfully manage their investments. Let us take the hassle out of property management so you can focus on the bigger picture.
Ready to Secure Your Investment?
At Mclaws Property, we specialise in property management and are here to help you in complying NSW’s rental regulations, both current and upcoming. Contact us today to discuss your investment property and how we can help you stay prepared for the future.