Understanding Tenants' Rights in New South Wales

Renting a home in New South Wales (NSW) comes with a set of rights and responsibilities that both tenants and landlords must adhere to. Understanding these rights can help tenants navigate their rental agreements, avoid disputes, and ensure a secure and comfortable living situation. From lease agreements to protections against unfair evictions, NSW tenancy laws are designed to create a balanced rental environment.

This Labor Day, as we recognize the importance of workers' rights, it's also an opportunity to reflect on housing security. Just as fair wages and workplace protections are crucial, so is having a stable and fair residential tenancy agreement. Many renters live in shared housing as tenants in common, and understanding these arrangements can prevent future disputes. Organizations like the tenants union can also provide valuable support in protecting tenant rights.

At CM Lawyers, we understand how complex tenancy issues can be, whether it’s dealing with disputes, understanding lease agreements, or addressing rental increases. Our team of legal professionals is here to support tenants in enforcing their rights and ensuring that landlords meet their obligations.

Understanding Lease Agreements in NSW

A lease agreement is a legally binding contract that defines the terms and conditions of a rental arrangement between a landlord and a tenant. In NSW, tenants typically enter into either a fixed-term lease (e.g., 6 or 12 months) or a periodic lease (month-to-month). Understanding the terms of your lease is crucial, as it outlines key aspects such as rent payments, maintenance responsibilities, and the conditions under which the agreement can be terminated.

Key Terms in Lease Agreements

Understanding the key terms in your lease agreement is essential for ensuring a smooth tenancy. Each clause outlines specific obligations for both tenants and landlords, covering rent payments, maintenance responsibilities, and termination conditions. By familiarizing yourself with these terms, you can avoid misunderstandings and protect your rights as a tenant. Check out the photo below for a quick overview or scroll further down for more details.

Rent Payment Terms

Tenants must pay their rent on time and in the manner agreed upon in the lease. Some landlords require direct bank transfers, while others may allow cash or cheques. If a tenant fails to pay rent on time, the landlord may issue a termination notice. However, tenants have rights under the law, and they can seek remedies if they face financial hardship. In cases of rental arrears, it’s important to communicate with the landlord and request a payment plan. Late rent payments can also impact a tenant’s rental history, making it harder to secure future leases. Tenants should also be aware of any additional fees that may be included in their residential tenancy agreement, such as late payment penalties. Additionally, tenants should keep records of rent payments to prevent disputes over missed payments.

Bond and Deposit Conditions

A rental bond is typically four weeks’ rent and must be lodged with NSW Fair Trading. This bond serves as security for any potential damage to the property or unpaid rent. Tenants should document the condition of the property upon moving in to ensure they can reclaim their bond at the end of the tenancy. Taking photographs and keeping a written record of any pre-existing damage can be beneficial. If a landlord withholds a bond unfairly, tenants can apply to NCAT to resolve the dispute. Additionally, tenants should be aware that landlords cannot demand more than the legally allowed bond amount or request additional security deposits. Understanding the timeline for bond refunds and knowing the steps to dispute unfair claims can save tenants from unnecessary financial loss.

Maintenance and Repairs

Tenants are responsible for keeping the property clean and reporting any necessary repairs. Landlords must address urgent repairs—such as plumbing failures, electrical faults, or gas leaks—immediately. If a landlord fails to make necessary repairs, tenants can arrange urgent repairs themselves and be reimbursed, provided they follow proper procedures. Non-urgent repairs should be requested in writing, and landlords must address them within a reasonable timeframe. If they fail to do so, tenants may seek legal recourse through NCAT. Tenants should also familiarize themselves with their maintenance obligations, such as garden upkeep or minor repairs like replacing light bulbs. Knowing what is classified as an urgent repair and how to handle different maintenance issues can help tenants manage their tenancy smoothly.

Rules on Pets

Landlords cannot unreasonably refuse requests for pets. If a tenant requests to keep a pet, the landlord must provide valid reasons for refusal, and tenants have the right to appeal the decision through NCAT. Additionally, tenants should understand their obligations regarding pet ownership, such as preventing damage to the property and ensuring the pet does not cause a nuisance to neighbors. Some strata buildings may also have specific bylaws governing pet ownership, which tenants must adhere to. If a pet damages the property, tenants may be liable for the cost of repairs, so it is essential to maintain the premises responsibly. Keeping a written agreement on pet ownership can prevent future conflicts between tenants and landlords.

Termination Clauses

Lease agreements outline how and when a lease can be terminated. For fixed-term leases, tenants must adhere to the agreed-upon duration unless both parties agree to end the lease early. For periodic leases, tenants must provide the required notice to vacate, while landlords must provide a legal reason for eviction. Common legal reasons include selling the property, needing the property for personal use, or the tenant breaching the lease terms. If a landlord issues a termination notice without proper legal grounds, the tenant may challenge it through NCAT. Understanding notice periods and ensuring compliance with termination requirements can help tenants avoid disputes and unexpected costs. It is also crucial to know the consequences of breaking a lease early and what compensation may be required.

Dispute Resolution and Legal Remedies

Disputes between tenants and landlords can arise for various reasons, including rent increases, property maintenance, bond disputes, and eviction notices. Understanding the available legal remedies and dispute resolution options can help tenants navigate conflicts and protect their rights. Several resources and services exist to assist tenants in resolving disputes efficiently and fairly.

• NSW Fair Trading: Assists with mediation and dispute resolution for rental disputes. This service helps tenants and landlords resolve issues without taking the matter to court.

• NSW Civil and Administrative Tribunal (NCAT): Handles tenancy-related legal matters, such as disputes over rent increases, bond claims, and repairs. Tenants can represent themselves or seek legal assistance.

• Tenant Advocacy Services: Provides free legal advice and representation for tenants facing complex disputes. These services are particularly useful for tenants dealing with unfair evictions or rental discrimination.

• Mediation Services: Mediation can be a cost-effective and less adversarial way to resolve rental disputes. A mediator facilitates a conversation between the tenant and landlord to reach a mutually agreeable solution.

• Legal Representation: In some cases, tenants may need legal representation, especially in complex disputes involving significant financial loss or breaches of tenancy law.

Common Tenant Mistakes to Avoid

Many tenancy issues arise due to common mistakes that tenants unknowingly make. By understanding and avoiding these pitfalls, tenants can protect their rights, maintain a positive rental experience, and prevent unnecessary legal complications. Here are some of the most frequent mistakes tenants should be mindful of and how to avoid them.

• Not Reading the Lease Thoroughly: Reviewing the lease ensures tenants understand all obligations and avoid unexpected fees. Certain clauses, such as break-lease fees or maintenance obligations, can have significant financial implications.

• Failing to Document Property Condition: Taking photos and keeping a record of maintenance requests helps prevent disputes. A detailed condition report protects tenants from being held responsible for pre-existing damage.

• Ignoring Maintenance Issues: Reporting repairs promptly ensures a safe living environment and avoids further property damage. Tenants should submit repair requests in writing to create a paper trail.

• Not Keeping Records of Communication: Documenting interactions with landlords can be crucial evidence in legal disputes. Emails, text messages, and written letters can help tenants prove their claims in NCAT proceedings.

• Breaking Lease Without Understanding Consequences: Tenants should be aware of financial penalties for breaking a lease early. Seeking legal advice before terminating a lease can help tenants understand their rights and obligations.

Recent Changes to NSW Tenancy Laws in 2025

In 2025, significant changes were introduced to the Residential Tenancies Act 2010 to enhance tenant protections and ensure fair rental practices. These reforms reflect the NSW Government’s commitment to improving rental security and affordability in response to rising housing pressures.

• End of No-Grounds Evictions: Landlords must now provide a valid reason for ending a tenancy, such as planned renovations or property sale.

• Limits on Rent Increases: Rent increases are limited to once per year, and landlords must justify the increase.

• More Rights for Pet Owners: Landlords must provide a valid reason for refusing pet requests, and tenants can appeal refusals through NCAT.

• Portable Rental Bonds: Tenants can now transfer their rental bond to a new property, reducing financial burdens when moving.

• Stronger Privacy Protections: New laws limit how landlords and property managers collect and store tenant information.

How CM Lawyers Can Help

At CM Lawyers, we specialize in tenancy law and offer a range of services to help tenants protect their rights. Our expertise includes:

• Reviewing Lease Agreements: We can examine lease agreements to identify unfair terms and negotiate better conditions for tenants.

• Representing Tenants in Rental Disputes: Whether facing a dispute over rent increases, maintenance issues, or eviction notices, we provide legal representation to protect tenants' rights.

• Assisting with Rental Bond Claims: If a landlord unfairly withholds a tenant’s bond, we help recover the funds through legal channels, including NCAT applications.

• Challenging Unfair Evictions: If a tenant receives an unlawful eviction notice, we provide legal assistance to challenge it in court.

• Providing Advice on Tenant Rights: Our team is available to answer questions about tenant rights, lease agreements, and legal obligations to ensure our clients make informed decisions.

• Negotiating Settlements: If a tenant is facing difficulties with a landlord, we can help negotiate fair settlements that protect their interests.

This Labor Day, take the time to review your residential tenancy agreement, understand your responsibilities as tenants in common, and seek guidance from a tenants union if needed.

If you are facing tenancy issues, don’t hesitate to seek professional legal guidance. Contact CM Lawyers today to ensure your rights are protected and your tenancy remains secure.