NSW Rental Law Changes: What Sydney Landlords Need to Know

Posted by Future Nexus Legend Real Estate in Landlord Guides
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NSW rental laws have changed significantly over the past two years. If you own an investment property in Sydney, these changes affect how you increase rent, end a tenancy, handle pet requests and collect rent. Here’s a plain-English summary of what landlords need to know.

NSW rental laws for Sydney landlords and tenants

Changes from 31 October 2024

Rent increases limited to once every 12 months

Rent can now be increased only once in any 12-month period, for all lease types, fixed-term and periodic. Previously, this limit only applied to periodic leases and fixed-term leases of two years or more. Tenants must still receive proper written notice of an increase, and they can apply to the NSW Civil and Administrative Tribunal (NCAT) if they believe an increase is excessive.

No extra fees for applicants

Landlords and agents can’t charge renters for background checks or for preparing a tenancy agreement at the start of a tenancy.

Changes from 19 May 2025

The end of “no grounds” evictions

This is the biggest change. Landlords can no longer end a tenancy without a reason. A termination notice must now state a valid ground, and in many cases include supporting evidence. Grounds include, for example:

The property is being sold and the contract requires vacant possession.
Significant renovations, repairs or demolition that require the tenant to move out.
The landlord or a family member is moving into the property.
A change in the use of the property.
A breach of the agreement by the tenant, such as unpaid rent.

Notice periods have also changed, and depend on the ground and the type of lease. For some grounds, the landlord can’t re-let the property for a set re-letting exclusion period after the tenancy ends. Renting the property out during that period is an offence.

Pets

Landlords can no longer advertise a property as “no pets”. When a tenant asks to keep a pet, the landlord must respond in writing, generally within 21 days, and can only refuse on specific grounds. Landlords also can’t increase the rent or bond as a condition of approving a pet.

Fee-free ways to pay rent

Tenants must be offered fee-free ways to pay rent, including bank transfer or Centrepay where applicable. Penalties apply if this isn’t offered.

What the new NSW rental laws mean for landlords

None of these changes stop you from running a profitable investment, but they do mean the details matter more than ever:

Plan rent reviews carefully. With one increase every 12 months, it pays to base each review on solid market evidence.
Choose tenants well from the start. With no-grounds terminations gone, a thorough application process is your best protection.
Keep good records. Condition reports, inspection reports and written communication are essential if a dispute reaches NCAT.
Get notices right. A termination notice with the wrong ground, notice period or missing evidence may not be valid.

How a property manager helps

Keeping up with tenancy law is a big part of what a good property manager does. At Future Nexus Legend Real Estate, we handle rent reviews, lease renewals, tenant communication and documentation for you, with records kept organised in line with NSW requirements. All for one fixed monthly fee. See how our service works, or talk to our team about your property.

Where to find the official rules

NSW Fair Trading publishes the current rules for landlords and agents, including notice periods for each termination ground. The Residential Tenancies Act 2010 (NSW) and its regulations are the legal source.

Need help with your rental property?

Future Nexus Legend Real Estate manages rental properties across Western and Northern Sydney, including Bella Vista, Rouse Hill, Seven Hills and Cumberland. Every property is managed for one fixed fee from $69 a month + GST, with leasing, inspections, repairs and rent collection included. Book a free rental appraisal or see how our property management works.

This article is a general summary only and isn’t legal advice. Laws change, so always check current information from NSW Fair Trading or get professional advice for your situation.