NSW Rental Law Reforms 2025: A Landlords Guide

by Reta Benjamin | July 14, 2025| Latest News

Significant changes have been introduced to the rental laws in NSW and it is crucial for landlords to understand their obligations as property investors.  These are the key legal changes.

Grounds for Termination of Tenancy Agreements
Landlords can no longer terminate tenancies without a valid reason. Acceptable grounds for termination include a ale of the property, major renovations or repairs, demolition of the property, the landlord or their family moving in and breaches of a lease by a tenant, such as the non-payment of rent. Landlords are required to provide supporting documentation for the abovementioned grounds and penalties are applied for false or misleading claims.

Re-letting Restrictions
When a tenancy agreement is terminated for specific reasons such as a sale of the property or the landlord moving into the property, landlords are unable to relist the property on the market for a period of between 6 and 12 months.

Rental Increase Limits
Rental increases are now limited to once every 12 months, which includes fixed term leases of two years or less.

Upfront Fees
Landlords and agents are prohibited from charging prospective tenants additional fees for the commencement of their tenancy, such as police checks or the preparation of the lease.

Pet Ownership
Tenants are now able to request to keep pets in rental properties and if a landlord does not respond within 21 days, consent is deemed to have been granted.  Landlords are unable to unreasonably refuse a tenant’s request to keep a pet. If a landlord refuses, they must provide a valid reason, for example, that it is a breach of strata bylaws.

Notice Period Changes
Landlords are required to provide the following notice periods to tenants:

  • for a periodic lease: at least 90 days’ notice.
  • for a fixed term lease of 6 months or less: at least 60 days’ notice, and the termination date cannot be before the end of the fixed term
  • for a fixed term lease of more than 6 months: at least 90 days’ notice, and the termination date cannot be before the end of the fixed term. 

These changes to the NSW rental laws are designed to increase the rights of tenants and reduce the rights of landlords, leaving landlords with little say about their property during the tenant’s occupation.  If you own a residential investment property and need legal advice, let one of our experienced Property Team help.  We have decades of experience.