Tenancy in Australia 2025: Essential Guide for Renters and Landlords

Australia’s rental landscape is evolving rapidly in 2025, as surging demand, tightening supply, and a fresh wave of tenancy reforms create new challenges—and opportunities—for both renters and landlords. Whether you’re signing your first lease, navigating a rent increase, or managing an investment property, understanding the latest tenancy trends and rules is essential for making confident, informed decisions.

2025 Rental Market Snapshot: Prices, Demand, and Shifting Expectations

In early 2025, vacancy rates in most Australian capitals remain below 1.5%, pushing median weekly rents to record highs. According to CoreLogic, Sydney’s median unit rent climbed to $720 per week in March 2025, while Brisbane and Perth are both experiencing double-digit annual rent growth. This intense competition means renters need to act fast, while landlords are under pressure to balance profitability with new compliance requirements.

• Regional areas: Some regional centres are seeing a stabilisation in rents as construction catches up with population growth.

• Affordability: The proportion of income spent on rent has reached 32% for the average household, up from 28% in 2022.

• Tenant preferences: Demand is surging for energy-efficient homes and pet-friendly leases, reflecting shifting priorities in a high-cost environment.

2025 Tenancy Law Changes: What’s New for Renters and Landlords?

This year, several states—including NSW, Victoria, and Queensland—have rolled out major updates to their tenancy acts. The new rules are designed to protect tenant rights, promote rental affordability, and encourage long-term security, but they also introduce fresh compliance headaches for property owners.

• Minimum standards: All rental homes in Victoria and QLD must now meet upgraded energy efficiency and safety benchmarks, including mandatory ceiling insulation and secure locks on all external doors.

• Rent bidding ban: States like NSW have outlawed rent bidding, requiring advertised rents to be the maximum chargeable amount. Agents must reject offers above the listed price.

• Pet-friendly policies: Landlords can only refuse a pet request with a valid reason, making it easier for renters to secure pet-friendly accommodation.

• Extended notice periods: In Victoria, notice to vacate periods for ‘no reason’ terminations have been extended from 60 to 90 days.

Landlords who fail to comply with these changes risk hefty fines. For renters, these reforms provide more leverage in negotiations and greater housing stability.

Smart Strategies for Renters and Landlords in 2025

With so much in flux, how can Australians get the most out of today’s rental market?

For Renters:

• Get your paperwork ready: With properties leasing quickly, have your references, payslips, and ID documents prepared before inspections.

• Understand your rights: Familiarise yourself with your state’s latest tenancy laws—especially around rent increases and bond claims.

• Negotiate smartly: If you’re facing a rent hike, research comparable listings and be ready to discuss repairs or improvements as bargaining chips.

For Landlords:

• Stay compliant: Regularly check your property against the new minimum standards and keep records of all maintenance and upgrades.

• Invest in energy efficiency: Homes with solar panels, efficient appliances, and good insulation are attracting higher-quality tenants and longer leases.

• Review your insurance: With more pet-friendly leases and longer tenancies, make sure your landlord insurance policy is up to date.

Looking Ahead: Future Trends in Australian Tenancy

Experts predict rental demand will remain strong throughout 2025, especially in inner-city and well-connected suburban areas. As the government’s National Housing Accord funds more build-to-rent developments and affordable housing projects, supply pressures may ease by late 2026. In the meantime, technology is making the rental process more transparent—digital inspections, online applications, and automated bond refunds are becoming standard across the industry.

Above all, the key to thriving in Australia’s 2025 rental market is staying informed and proactive. Whether you’re a tenant or a landlord, understanding your rights, obligations, and market conditions puts you in the best possible position to achieve your goals.