NSW Rental Law Changes: What Landlords and Tenants Need to Know

By Gorkem Oksuz and Brad Marland

Residential tenancy laws in New South Wales have undergone significant reform, affecting how tenancies can be ended, how often rent may be increased, the keeping of pets and the payment and transfer of rental bonds.

While several reforms are already operating, further changes will commence in September 2026. Landlords, tenants and property managers should understand how the new requirements affect their rights and responsibilities.

No More “No-Grounds” Terminations

Since 19 May 2025, landlords have been required to provide a valid reason when ending either a periodic tenancy or a tenancy at the end of its fixed term.

Permitted reasons include:

• the tenant has breached the agreement, damaged the property or failed to pay rent;
• the property is being sold with vacant possession;
• significant repairs, renovations or demolition require the property to be vacant;
• the landlord or an eligible family member intends to move into the property; or
• the property will no longer be used as a rental residence.

 
Supporting documents are required for certain grounds. Landlords must also provide tenants with the prescribed information statement when issuing a termination notice.

Importantly, restrictions may prevent a property from being re-let for a specified period after a tenancy is terminated on certain grounds. Significant penalties may apply where a termination ground is not genuine or supporting documents are false or misleading.

Rent Increases Limited to Once a Year

Rent may now generally be increased only once in any 12-month period, regardless of whether the tenancy is periodic or fixed term.

This restriction applies to all tenancy types, including most agreements entered into before the reform commenced on 31 October 2024. Landlords and agents should carefully check the date of the last increase before issuing a new rent increase notice.

Changes to Pets in Rental Properties

Tenants must continue to obtain the landlord’s consent before keeping a pet. However, a landlord may now refuse a request only on specified grounds.

This means a request cannot be rejected simply because the landlord does not generally allow pets. Landlords and agents must consider each request individually and comply with the required response process.

Free Ways to Pay Rent

Landlords and agents must provide tenants with a fee-free way to pay rent.

Tenants must be permitted to pay by an approved electronic bank transfer method, such as EFT, direct debit or BPAY. From 2 March 2026, Centrepay must also be offered as an available option.

A tenant cannot be required to use a particular payment platform or third-party application that charges additional fees. Other payment methods may still be used where both parties agree.

Smart Rental Bonds

The optional Smart Rental Bonds scheme began its staged rollout on 10 August 2026.

The scheme is intended to allow eligible tenants moving within NSW to transfer their existing rental bond to a new property. This may reduce the financial pressure of having to pay a second bond before the bond from the previous tenancy has been released.

Landlords and agents should also be aware that, from 1 July 2026, they 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 it was the landlord, the reason for doing so.

Stronger Domestic Violence Protections

Further protections for victim-survivors of domestic violence will commence on 21 September 2026.

The reforms will make it easier for victim-survivors to end a tenancy without penalty and will shift responsibility for notifying remaining co-tenants to the landlord or agent. Other changes will:

• expand the categories of people who may provide supporting declarations;
• protect victim-survivors from liability for damage caused by domestic violence in certain circumstances;
• strengthen privacy protections concerning photographs and advertising;
• broaden the circumstances in which locks and security devices may be changed;
• prohibit certain tenancy database listings; and
• create clearer pathways for recovering a departing tenant’s share of the rental bond.

 
Landlords and agents will need to handle domestic violence termination notices carefully, particularly because of the strict privacy and notification requirements.

What Should Landlords and Agents Do?

Landlords and property managers should review their tenancy agreements, termination procedures, rent payment systems and internal record-keeping practices. In particular, they should ensure that:

• every termination notice relies on a permitted and genuine ground;
• any required supporting documents are retained;
• rent is not increased more than once in 12 months;
• pet requests are assessed under the prescribed criteria;
• tenants are offered fee-free payment options; and
• staff understand the expanded domestic violence protections commencing in September 2026.

 
Tenants should also familiarise themselves with the reforms so they can identify whether a rent increase, termination notice, pet refusal or payment requirement complies with the law.

How Madison Marcus Can Assist

The recent reforms have materially changed the rights and obligations of tenants, landlords and property managers across NSW. Failing to follow the correct process may result in an invalid notice, a dispute before the NSW Civil and Administrative Tribunal or financial penalties.

If you require advice concerning a residential tenancy, termination notice, rent increase, rental bond or dispute, the experienced property law team at Madison Marcus can assist you in understanding your position and determining the appropriate next steps.

This article provides general information only and does not constitute legal advice. Advice should be obtained regarding your particular circumstances.