Rental reforms stopping landlords from asking for twice-a-year increases came into force on Monday as other states toughen tenant laws.
The government measures also mean pets and minor modifications will be allowed in most rental properties in the state.
These latest moves follow a clampdown on landlords forcing would-be tenants into bidding wars.
NSW tenants also learned they would be given longer notice periods by landlords under moves by the Chris Minns government to extend no-grounds eviction timescales.
The changes in NSW – likely to come into force next year – will bring the state in line with the ACT, SA and Victoria.
Disputes about pets and minor modifications will be heard in new process under the changes.
Commerce Minister Sue Ellery said: “A rental will feel more like a home now that tenants are allowed to keep pets where reasonable and make their own small, personalised changes to the property.
“Empowering the Commissioner for Consumer Protection to handle disputes about pets and minor modifications will allow for these issues to be resolved in a fast, fair and transparent way.”
The minimum 12-month timeframe will begin immediately for periodic tenancies, according to a government statement.
For fixed-term tenancies, it will start once the current term of the lease agreement ends.
Tenants will need to seek permission from the landlord to keep a pet and landlords can impose reasonable conditions. Some conditions will require the approval of the Commissioner.
Minor modifications – such as hanging pictures on a wall, putting up flyscreens or installing a water-saving shower head – are also now allowed in most cases. The tenant will need to get the permission of the landlord.
Disputes about minor modifications and pets will be considered by the Commissioner for Consumer Protection, who will hear from both sides before making an independent ruling.
The latest reforms follow the implementation in May 2024 of a ban on soliciting rent bidding and empowering tenants to challenge retaliatory action by landlords in court.
A streamlined bond release process is expected to be introduced in early 2025.
