Recent changes to NSW tenancy laws have made it easier for tenants to keep pets in rental properties. While landlords can still refuse a pet, they must now respond in writing within 21 days and give valid reasons, such as property unsuitability or strata or council restrictions. Blanket “no pets” policies are no longer acceptable, and if a landlord fails to respond, consent may be deemed given.

With more pets in rentals, it’s important to understand the difference between fair wear and tear and damage. Minor carpet wear or light scratches are usually considered normal use, whereas chewed fittings, urine‑stained carpets, or torn flyscreens may be treated as damage. Disputes are assessed by NCAT, which focuses heavily on reasonableness and supporting evidence such as condition reports and photos.

A common issue we see is insurance gaps. Not all landlord policies cover pet‑related damage, particularly gradual damage like odours or staining, and some policies require the pet to be formally approved. Without the right cover, landlords may face out‑of‑pocket costs even if a bond is held. Reviewing insurance before approving a pet is critical.

NSW law does not allow additional “pet bonds”, but tenants remain responsible for cleaning, pest treatment if required, and repairing damage beyond fair wear and tear. Clear lease conditions and regular inspections help prevent disputes.

The bottom line: Pets are now a normal part of renting in NSW. Most problems arise not from the pet itself, but from poor documentation, unclear approvals, or inadequate insurance.

For more information, or to review whether your landlord insurance adequately covers pet‑related risks, please contact your Action Insurance Brokers advisor, who can assist with tailored advice and a policy review.