What You Need to Know About the 2025 Changes to Rental Laws

The rental landscape is set to shift in 2025 with new legislative changes to create a fairer and more transparent framework for tenants and landlords alike. These updates will affect rent increases, tenancy agreements, notice periods, pet ownership, and rent payment methods. Here’s what you need to know:

1. Rent Increases

Under the new rules, rent increases can only occur once per year, regardless of the lease type. Previously, this restriction applied only to periodic and fixed-term leases of two years or more. From 2025, the rule will apply to all fixed-term leases, including those under two years.

2. Ending a Tenancy

Landlords will need a valid reason to end periodic and fixed-term leases. Acceptable reasons include:

• Tenant breach, property damage, or non-payment of rent.
• Sale of the property requiring vacant possession.
• Significant repairs, renovations, or demolition.
• The property will no longer be used as a rental home.
• The landlord or their family intends to move in.
• The tenant’s eligibility for specific housing programs has ended.

Additionally, landlords must provide evidence with a termination notice to justify ending the lease.

3. Extended Notice Periods

Notice periods for ending leases are being extended:

• 60 days for leases of six months or less.
• 90 days for leases longer than six months.

These extended timeframes aim to provide tenants with greater security and planning flexibility.

4. Pet Ownership

Tenants will have more opportunities to keep pets, with landlords required to respond to pet requests within 21 days. Failure to respond will result in automatic approval.

Landlords can refuse a pet request only under specific circumstances, such as:

• The property is unsuitable for the pet.
• The pet may cause significant damage beyond the bond amount.
• The landlord resides at the property.
• The pet violates laws or by-laws.

Importantly, these reforms are no longer valid under strata by-laws banning all pets.

5. Rent Payment Options

Landlords and property managers must now offer tenants an electronic payment method, such as bank transfers or Centrepay, without additional fees.

Renters can choose alternative payment methods only with mutual agreement. Crucially, tenants cannot be forced to use specific apps or service providers to pay rent.

What This Means for You

These changes, commencing in the first half of 2025, aim to create a more balanced rental market by enhancing tenant rights while maintaining clarity for landlords. At Ray White Double Bay, we are committed to helping our clients navigate these updates quickly and confidently. If you have any questions about how these changes may impact your tenancy or property management, our expert team is here to assist.