NSW has banned no-grounds evictions, capped rent increases and introduced Smart Rental Bonds. Here is what tenants and landlords need to know about the changes.
Property & Suburbs Desk is a contributing writer covering property and public affairs for The Sydney Times.
NSW has implemented the most significant rental law reforms in a generation, banning no-grounds evictions, capping rent increases at once per year, introducing Smart Rental Bonds and strengthening protections for tenants and victim-survivors of domestic violence.
Since 19 May 2025, landlords must provide a valid reason to end a tenancy for both periodic leases and fixed-term agreements. Permitted reasons include tenant breach, non-payment of rent, property sale with vacant possession, significant renovations, or the landlord or an eligible family member moving in. Supporting documents are required for certain grounds, such as contracts of sale or renovation quotes. Re-letting restrictions apply for up to 12 months depending on the reason for termination.
The change ended a decades-old arrangement that allowed landlords to evict tenants without reason, simply by giving 90 days' notice for periodic agreements or the end of a fixed term. The NSW Government estimates that around 45 percent of leases previously ended without a reason given. Tenants can now assert their rights without fearing an unfounded eviction notice. The NSW Rental Taskforce has issued almost 600 fines worth nearly $421,650 since its inception one year ago, identifying 7,712 rental compliance matters.
From 31 October 2024, rent can be increased only once in any 12-month period for all lease types, including periodic agreements and fixed-term agreements of less than two years. The restriction applies to most agreements, including those entered into before the reforms commenced. Landlords must give 60 days' notice before increasing rent.
The change addresses a common practice where landlords increased rent every six months, exploiting the turnover of tenancies to extract higher rents without improving properties. The NSW Government's Rental Market Analysis found no significant negative impact on rental availability or investor behaviour following the reforms. The total number of rental bonds held grew steadily by 1.1 percent over 12 months to nearly one million active tenancies by March 2026.
From 10 August 2026, the optional Smart Rental Bonds scheme allows tenants moving within NSW to transfer their existing rental bond to a new property rather than paying a second bond upfront. The scheme costs $25 to initiate and covers any shortfall between the old and new bond amounts. The Tenants' Union welcomed the scheme but called for the $25 fee to be scrapped, arguing it would fall hardest on lower-income renters.
Landlords and agents must also provide a fee-free way to pay rent, including bank transfer and Centrepay. Tenants cannot be charged fees for background checks when applying for a rental property. These changes reduce the upfront cost of renting and remove barriers for low-income tenants.
From 19 May 2025, landlords can only refuse a tenant's request to keep a pet for specified reasons, such as the pet causing damage or posing a risk to other tenants. The refusal must be reasonable and cannot be based on a blanket no-pets policy. Tenants' Union of NSW says the changes make it easier for renters to keep pets without fear of eviction.
From 21 September 2026, new protections for victim-survivors of domestic violence will commence. These include easier early termination of tenancies, improved protections from liability for property damage caused by domestic violence, and the ability to change locks or security devices without landlord consent where an apprehended violence order or bail condition prevents the alleged perpetrator from accessing the property. Landlords or agents must notify remaining co-tenants within seven days of a domestic violence termination notice.
Landlords must complete a mandatory survey through Rental Bonds Online within 14 days of claiming or releasing a bond. The survey records who ended the tenancy and, where the landlord ended it, the reason. Re-letting restrictions apply where a tenancy is terminated for property sale, renovations or landlord occupation.
Landlords must also offer rent payment by bank transfer and Centrepay without additional fees. Pet requests must be assessed under the prescribed criteria, with refusals based only on the permitted grounds. Failure to comply with the new requirements can result in fines, invalid termination notices and proceedings before the NSW Civil and Administrative Tribunal.
According to the NSW Fair Trading rental law changes, the reforms represent the most significant overhaul of NSW rental laws in a generation, with further changes expected as the Government continues to monitor the rental market. For more on Sydney property and tenancy, see Property & Suburbs.
Direct inquiries, corrections, or documentation concerning this dispatch to our editorial newsroom desk.
Build-to-rent is transforming Sydney's housing supply pipeline, with 7,600 units under construction and 18,200 proposed as institutional capital moves into residential renting.
Sydney home values have fallen 1.4 per cent in August alone, with high-end properties down more than 10 per cent from peak as rate rises and tax changes reshape the market.
Sydney's rental vacancy rate held at 1.6 percent in July 2026, well below the balanced-market threshold, while combined rents rose 6.3 percent year-on-year.
The Waterloo renewal project will deliver 3,300 homes including 1,000 social homes, but activists warn the demolition of 750 public housing units risks displacing long-term residents and destroying community networks.