Rent Law Reform: What Landlords and Tenants Need to Know

Monday 24 March, 2025

On 17 December 2024, the Residential Tenancies Amendment Bill 2024 received royal assent, and came into effect, on a staggered basis, on 30 January 2025. This legislative reform seeks to remove barriers to rental supply and incentivise property owners to rent their properties via the private rental market. The amendments introduced by the Residential Tenancies Amendment Act 2024 (Amendment Act) significantly alter the rights and obligations of both landlords and tenants alike. Amendments include:

• Reversing the reforms made in 2020 in relation to termination of tenancies; 
• Reform related to tenants keeping pets in rental properties; and
• Improvements to the clarity and efficiency of the Residential Tenancies Act (Act).  

Tenancy Terminations effective 30 January 2025

The Amendment Act reverses critical provisions introduced by the Residential Tenancies Amendment Act 2020 in relation to the termination of tenancies.  

Periodic Tenancies

The Amendment Act reinstates a landlord’s ability to terminate a periodic tenancy on 90 days’ notice without reason. The notice period for termination where the landlord has sold and requires vacant possession has been reduced from 90 to 42 days, and landlords can now terminate for other specified reasons with just 42 days’ notice. Conversely, a tenant can terminate a periodic tenancy with 21 days’ notice at any time, the previous notice period under earlier reforms was 28 days. 

Fixed Term Tenancies 

Currently, a landlord can only end a fixed term tenancy at the end of the fixed term if one of the specific grounds in the Act applies, while the tenant can give 28 days’ notice in any case of their intention to end the tenancy. The Amendment Act provides that, where a fixed term tenancy ends on or after 1 May 2025, either party may terminate the tenancy without cause by providing notice of not less than 21 days and up to 90 days before the expiry of the tenancy (this period is known as the “effective period”).  If notice is not given in the effective period, when the fixed term tenancy expires it automatically becomes a periodic tenancy, and the usual termination by notice provisions for periodic tenancies will apply. 

Pets and Pet Bonds effective late 2025

A tenant may keep a pet on the premises if the tenancy agreement allows for this, or the landlord gives written consent. Landlords must provide written consent within 21 days of a tenant’s request to keep a pet. Consent cannot be unreasonably withheld, and refusals must be based on reasonable grounds such as the suitability of the premises, specific statutory prohibitions or previous failure to comply with reasonable conditions or bylaws. Landlords are also prohibited from imposing unreasonable conditions when granting consent. 

A new section (18AA) of the Act provides that a reasonable condition for consenting to the tenant keeping a pet may be to require a refundable “pet bond” in addition to the general tenancy bond. At any one time, only one pet bond can be charged regardless of the number of pets. The pet bond is up to a maximum amount equivalent to two weeks’ rent, providing landlords with financial protection against pet-related damage.

If a tenancy commenced before this section comes into force and the tenancy agreement allowed the tenant to keep a pet; or express consent was given for the keeping of a pet; or the agreement did not prohibit the keeping of pets, then the landlord cannot require a pet bond.

Clarity and Modernisation effective 20 March 2025

Family Violence: Tenants will be allowed to withdraw from a tenancy, with two days’ notice, if their child or dependent experiences family violence while residing at the premises. This provision expands the scope of earlier laws, which limited the withdrawal right to instances where the tenant themselves was the victim. 

Address for Service: The Amendment Act amends address for service to include an “electronic address”, such as an email address, telephone number or instant messaging account. 

Retaliatory Termination Notice (effective 31 January 2025): Tenants now have up to 12 months to challenge retaliatory termination notices in the Tenancy Tribunal, an extension from the previous 28 day limit. This provides greater protection and access to exemplary damages for affected tenants.  If a tenant applies within the 28 day period, they can also request that the notice to terminate be cancelled. 

Smoking: A landlord may prohibit smoking indoors and in any part of the premises, provided that if prohibiting smoking anywhere on the property such clauses are consistent with the parties’ other rights and obligations under the Act.

Bond Lodgement (effective 17 December 2024): Bond lodgements may now be made online and without the need to upload a PDF bond lodgement form. Additionally, signatures are no longer required when lodging or topping up a bond. 

Conclusion 

The Residential Tenancies Amendment Act 2024 is an attempt to restore the balance in the landlord-tenant relationship however some may consider it has tipped too far in favour of landlords as it seems to reduce security for tenants. Familiarisation with the Amendment Act will be essential in understanding changes to your rights, obligations and benefits. If you have any questions about these changes, or how they may affect you, please contact one of our experts below. 

Our thanks to Summer Intern Matthew Veitch for his contributions to this article, supported by our Commercial Property team.