Property & Conveyancing
NSW rental law changes: what landlords need to know
Connor Barham · Principal Solicitor
What the recent NSW rental reforms mean for landlords, from ending a tenancy with a valid reason to rent increases, fees and pets.
Published
NSW rental law has changed significantly over the past two years, and the changes shift the balance towards tenants. If you own an investment property, the rules on how and when you can end a tenancy, raise the rent, and deal with pets are not what they were. This guide covers what landlords need to know.
The headline change: no more no-grounds terminations
The biggest change is the end of no-grounds terminations. From 19 May 2025, you can no longer end a tenancy simply by giving notice without a reason. You must now have a valid reason, set out in the law, and for some reasons you must provide supporting evidence. This applies to periodic agreements and to fixed-term agreements at the end of their term, including agreements already on foot.
In practice this means you need to plan ahead and document your reason properly. A notice given without a valid ground, or without the required evidence, can be challenged, and a defective notice can cost you weeks or months. This is the area where we expect to see the most disputes, so getting the notice right the first time matters.
Valid reasons to end a tenancy, and the notice periods
The valid reasons fall into two broad groups. Some let you end a fixed-term agreement early for cause. Others let you end an agreement at the end of a fixed term or a periodic agreement.
For the common end-of-tenancy grounds, the minimum notice periods are as follows.
| Reason | Fixed term 6 months or less | Fixed term over 6 months | Periodic |
|---|---|---|---|
| Actual sale (contract requires vacant possession) | 30 days | 30 days | 30 days |
| Proposed sale with vacant possession | 60 days | 90 days | 90 days |
| Significant renovations or repairs | 60 days | 90 days | 90 days |
| Change of use | 60 days | 90 days | 90 days |
| Landlord or family moving in | 60 days | 90 days | 90 days |
Other grounds have their own rules. Non-payment of rent or charges requires the amount to be unpaid for at least 14 days before notice. Serious damage, threats, abuse or illegal use can support a Tribunal termination order without notice. If a notice is posted, allow an extra 7 working days for delivery.
Restrictions after you end a tenancy
Some grounds come with a restriction on re-letting, to stop the ground being used as a workaround. If you end a tenancy on the proposed sale ground, or to move yourself or family in, you generally cannot re-let the property for 6 months after the termination date. Breaching these restrictions can expose you to penalties, so do not end a tenancy on one of these grounds unless the reason is genuine.
Our practical point. If you are selling with vacant possession, think about the timing early. The notice period plus the restriction rules can affect your settlement timetable, and we often sort this out as part of the conveyancing.
Rent increases: once a year
From 31 October 2024, rent can be increased only once in any 12-month period, for all lease types, including agreements that began before the change. The increase must be properly notified in writing with the correct notice period. For a fixed-term agreement of under two years that was in place before the change, rent cannot be increased unless the increase was validly written into the agreement.
No more fees at the start of a tenancy
Also from 31 October 2024, you cannot charge a tenant or prospective tenant for the costs of searching for, applying for, or starting a tenancy. That includes background check fees and fees for preparing the tenancy agreement. These costs now sit with the landlord.
Pets
From 19 May 2025, you can only refuse a tenant's request to keep a pet for certain reasons set out in the law, and a request is taken to be consented to if you do not respond in time. Further pet rules apply from 2 October 2026, including that a tenant moving in with a pet can apply for consent within 7 days of signing and keep the pet while waiting for a response.
The shift here is that a blanket no-pets position is no longer safe. If you want to refuse, the refusal has to fit one of the allowed reasons, and it has to be made within the time limit.
How we help landlords
Most of what trips landlords up now is process. The right ground, the right evidence, the right notice period, served the right way. We help investor clients end a tenancy cleanly when they need to, time a sale with vacant possession, and keep notices defensible if a tenant challenges them. If you are planning to sell or move back in, talk to us before you serve a notice, not after.
Frequently asked questions
Can I still end a tenancy without giving a reason? No. Since 19 May 2025 you must give a valid reason set out in the law, and for some reasons provide evidence.
How much notice do I have to give to sell? For an actual sale requiring vacant possession, 30 days. For a proposed sale, 60 or 90 days depending on the agreement.
How often can I increase the rent? Once in any 12-month period, since 31 October 2024.
Can I refuse a pet? Only for the reasons allowed by law, and you must respond within the time limit or consent is taken to be given.
Keep reading
- Property and conveyancing
- NSW rental law changes: what tenants need to know
- Buying a home in NSW: the conveyancing process explained
This article contains general information only and is not legal advice. For advice about your situation, please contact us. Liability limited by a scheme approved under Professional Standards Legislation.
This article contains general information only and does not take your circumstances into account. Please obtain legal advice about your own situation.