Landlords will no longer be able to refuse pets without any reason, but they will still be able to decline in certain specific situations, the NSW Government said.
Around a third of the state's population rents, the government says, with the number of homes on offer at historic lows.
But according to the government, one in five pets are surrendered to the RSPCA due to rental worries.
Plus domestic violence organisations say victims face a barrier leaving dangerous homes because of fears about getting a rental with their pet.
NSW Premier Chris Minns announced the move, which will be introduced to parliament next month, at a press conference attended by dogs.
Minns said more than 60 per cent of people in the state have pets.
“It stands to reason that there are thousands if not close to a million people who are renters who have a pet in New South Wales,” he said.
“We need to make it as easy as possible.”
He says he hopes it will mean less pets are handed to charity, or even euthanised or abandoned.
He said there would be a list of reasons landlords were allowed to decline a tenant having animals.
“The days of automatically rejecting a pet for no reason are over if it passes the NSW Government,” he said.
He said it would bring the state in line with other parts of Australia.
Other proposals as part of the new rental reform legislation include making sure tenants have a “free and convenient way to pay their rent,” Minns said.
Some tenants are forced to used systems which charge them money, such as 1.5 per cent on top of their rent, he said.
“We think its increasingly becoming a hidden charge for renters in New South Wales,” Minns said.
More than 16,000 people responded to a public consultation on the issues.
The bill will also include measures such as ending no grounds evictions and a ban on charging for background checks.
NSW Rental Commissioner Trina Jones backed the moves.
“This is another important step towards a fair, quality, affordable rental experience in NSW,” Jones said.
“We are working closely with renters, landlords, the RSPCA, animal welfare organisations, agents and advocates to ensure these proposed reforms can be implemented successfully.”
