As Australia ushers in new tenancy laws, landlords stand to benefit significantly from the proposed changes.
While these regulations aim to balance tenant rights, they also incentivise landlords to enhance the value, efficiency, and appeal of their rental properties.
The Agency’s national director of property management, Maria Carlino, says by improving their properties, investors can attract reliable tenants and ensure long-term financial stability.
“These regulations, when viewed through the lens of strategic property management, are not just about compliance—they are about securing a competitive edge in the rental market,” she said.
We cast a lens across each state and explore the advantages new legislation brings to property owners in various states.
New South Wales
From 23 March 2025, all rental properties must feature dual flush toilets with a minimum three-star rating under the Commonwealth Water Efficiency Labelling and Standards (WELS) scheme.
“For landlords, this presents a chance to modernise their properties, reducing water bills and making their rentals more attractive to eco-conscious tenants,” says Maria Carlino.
One of the more controversial changes in NSW which attracted significant media attention are new reforms introduced to end no-grounds evictions.
“Under previous laws, landlords can terminate a periodic lease at any time without providing a reason, creating uncertainty and financial stress for renters. However, proposed reforms aim to change this by requiring landlords to have a valid reason to end both periodic and fixed-term leases,” explains Ms Carlino.
The reforms outline several “common-sense” reasons for termination, including existing rules for breach of lease, damage to the property or non-payment of rent.
Other eviction reasons would include a property being sold or offered for sale with vacant possession, a property requiring significant repairs, renovations or demolition, or a property no longer being used as a rental.
The reforms will also allow landlords to terminate a lease if a renter is no longer eligible for an affordable housing program or if the property was purpose-built student accommodation and the renter was no longer a student.
Landlords will need to provide evidence when issuing a termination notice, with penalties for non-genuine reasons. The notice period for fixed-term agreements of less than six months will increase from 30 to 60 days, and for agreements longer than six months, from 60 to 90 days. Periodic agreement notice periods will remain unchanged.
The proposed changes will give more certainty to both investors and renters in a challenging and tight rental market, Ms Carlino believes.
“These reforms aim to offer renters more security while ensuring landlords can still manage their properties effectively,” she said.
The changes would bring NSW into line with other states, including the ACT, South Australia and Victoria.
Victoria
Victoria's proposed laws aim to introduce minimum energy efficiency standards, which Ms Carlino believes offer an opportunity for landlords to stand out in a crowded market.
“By installing ceiling insulation, draught seals, and energy-efficient appliances, landlords can offer tenants a more comfortable living environment while reducing overall energy costs,” she said.
These upgrades not only meet the incoming standards but also increase the appeal of rental properties to potential tenants, particularly those looking to save on energy bills amidst rising costs.
“Properties with better energy ratings often command higher rents, providing landlords with a tangible return on investment,” she added.
“The Real Estate Institute of Victoria (REIV) is actively engaging in the consultation process to ensure these regulations support both tenants and landlords, aiming for a balanced approach that acknowledges the financial capacity of property owners,” Ms Carlino said.
Western Australia
Western Australia's new laws, effective from 29 July 2024, bring greater stability by limiting rent increases to once every 12 months. This change provides a more predictable income stream for property owners, allowing for better financial planning. Additionally, the introduction of pet-friendly policies gives landlords more certainty while maintaining control over their properties.
In certain instances, landlords retain the right to refuse pets, ensuring that some flexibility is permitted.
“The ability to impose reasonable conditions, such as requiring professional cleaning and pet bonds, helps protect the property's integrity while expanding the potential tenant pool to include pet owners, a growing demographic in the rental market,” said Ms Carlino.
Western Australia and Tasmania have introduced more pet friendly policies in its tenancy regulations.
Tasmania
The proposed amendments to Tasmania's Residential Tenancy Act 1997, alongside similar reforms across Australia with broader changes, offer landlords a unique opportunity to enhance their properties while maintaining control and minimising risks.
Minor modifications
Landlords can approve minor tenant modifications, like installing picture hooks or safety features, which can boost a property's appeal and functionality. These updates can increase property value without requiring significant investment from the landlord.
Security and energy efficiency
Allowing tenants to make minor security enhancements, such as adding deadlocks or security cameras, not only improves tenant safety but also makes the property more attractive to future renters. Additionally, permitting energy-efficient upgrades like LED lighting or window glazing can lower energy consumption, appealing to eco-conscious tenants and potentially raising property value.
Accessibility
By accommodating accessibility modifications, landlords can make their properties more inclusive. This not only expands the pool of potential tenants, including those with disabilities or older individuals, but also enhances the property’s reputation in the market.
Telecommunications
In today’s digital world, connectivity is crucial. Allowing tenants to install NBN connections or TV antennas ensures properties remain modern and appealing, preventing them from becoming outdated in a tech-driven market.
Landlord Protections
These amendments include safeguards that keep landlords in control. Tenant modifications still require landlord consent, and landlords can seek tribunal intervention if a request seems unreasonable, ensuring any changes are beneficial and manageable.
Pets
The Tasmanian Government has tabled amendments to the Residential Tenancy Act to mandate the keeping of pets in privately owned rental properties. A pet-friendly approach will see Tasmania fall in line with other states.
Queensland
Queensland's tenancy law changes, effective from 6 June 2024, introduced several measures that promote fairness and transparency in rental agreements.
By capping rent increases to once every 12 months and eliminating rent bidding, these laws create a more stable and predictable rental environment.
For landlords, this means fewer disputes and a more straightforward process for managing rent reviews, Ms Carlino said.
“The new regulations also emphasize the importance of clear communication and proper documentation, reducing the likelihood of conflicts and ensuring smoother interactions with tenants.”
“This structured approach not only helps in maintaining good tenant relations but also protects landlords from potential legal issues, fostering a more professional and well-regulated rental market.”
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