Rental laws are changing in NSW.
New laws to limit rent increases to once per year and to prevent extra charges at the start of a tenancy started on 31 October 2024. Other changes, including requiring landlords to give a reason to end a tenancy and making it easier to keep pets in rental homes will be changing in 2025.
1
Consider if the property meets your needs
Important points to consider when looking for or inspecting a property:
- is the property the right size, and, if necessary, is it suitable for children, the elderly, or people with disability (e.g. wheelchair access, elevator access, or other accessibility measures)?
- does the property have the necessary facilities or amenities (e.g. the type of internet connection available, storage, parking, air-conditioning)?
- are any utilities supplied to the property through an embedded network? This can offer benefits such as potentially lower utility costs through bulk purchasing and centralised management. However, tenants should be aware of the implications of being part of an embedded network, including the potential lack of choice in utility providers and the possibility of higher fees or charges in some cases.
- is the property in the right location for work, schools, medical centres, and is it close to public transport?
- is the property suitable for pets (e.g. enough room, fencing for outdoor dogs)?
- is the property you are interested in renting in a strata scheme?
Check also if it meets the required minimum standards for a rental property in NSW.
2
Determine your budget for rent and utilities
Look for properties that fall within your financial means, considering not only the rent but also additional expenses such as utilities, parking and transport costs.
Find out how much the rent is and who pays for electricity, gas or water usage. The rent cost will depend on the type of property and the location.
The Tenants' Union of NSW have a Rent Tracker Postcode Tool that can be used to check the latest rent prices for different property types and number of bedrooms in any postcode in NSW.
The tool can help a tenant and landlords work out how much is fair rent. A tenant can also use this tool to understand how much they might save or lose moving to a different area.
3
Fill in the application form
You will be asked to fill out an application form for the property. The landlord or agent should consider all applications for the property before offering it to a tenant. Generally, landlords or agents are looking for a tenant who is able to pay the rent and has a good tenancy history.
Property providers may ask you for information to support your application. You can check if any request for your personal information is in line with guidelines for dealing with personal information from tenancy applicants and tenants.
Learn more about the personal information your landlord or agent may ask you for during this time.
Property providers can choose the most suitable applicant for the property but they are not allowed to unfairly discriminate. If you feel you have been discriminated against by a landlord or agent you can get more information and support about dealing with discrimination.
If you are currently a public housing tenant, you can apply to DCJ Housing for a Statement of Satisfactory Tenancy to support your move from public housing to a private rental by showing that you have been a satisfactory tenant.
4
Make sure you have all information you need before you sign a lease
The landlord must give you all the documents and information you need to know about the property before you sign.
Paying a holding fee if asked
You may be asked to pay a holding fee of no more than one week's rent. This deposit will go towards your rent if you are successful with your application.
A landlord or agent can only require or receive a holding fee from you if they have approved your tenancy application.
The landlord or agent can't sign a rental agreement with anyone else within the first 7 days of payment of the holding fee (or longer if agreed to).
The landlord may keep the holding fee if you do not sign the agreement, unless:
- you did not sign the agreement because the landlord did not tell you certain 'material facts' about the property, or
- the landlord made a false or misleading representation.
Costs you cannot be asked for
Tenants must not be charged any costs other than a holding fee, bond, rent, or a fee for registering the lease with NSW Land Registry Services when applying for or starting a lease. See more about costs at the start of a tenancy.
Laws around the practice of 'rent bidding' prevent a landlord, agent or digital rental application provider from soliciting or inviting higher rent offers from tenants.
Keep all receipts
Make sure you keep receipts for everything you pay for. If you are going to be paying rent by direct deposit, your bank records will act as your receipts.
Get help with costs
You may be able to get help to secure a rental property and pay for rent and other costs. Learn more about what help is available and who is eligible.
What if things go wrong?
You can talk to NSW Fair Trading if a landlord or agent, for example:
- charges you anything other than a holding fee, rent, bond or lease registration fee before you enter into an agreement
- withholds any ‘material facts’, proposed sale or mortgagee action, or makes any false/misleading statement before you enter into an agreement
- includes prohibited terms in the tenancy agreement
- asks for a bond of more than 4 weeks rent.
You can apply to the Tribunal for an order to:
- require the landlord to prepare and enter into a written tenancy agreement
- invalidate a term of the tenancy agreement because it is inconsistent with the law
- refund a holding fee to you
- amend the condition report.
Make sure to gather receipts or written evidence before you seek support or make a complaint.