NSW Rental Laws Are Changing: Is Your Investment Ready?

Updated September 2026

Owning an investment property in New South Wales comes with a range of legal responsibilities, and over the past two years the rules governing residential tenancies have changed significantly.

A series of reforms introduced from late 2024 through to 2026 have changed how landlords can end tenancies, increase rent, respond to pet requests and accept rental payments. There are also new processes surrounding rental bonds and stronger protections for tenants experiencing domestic violence.

For NSW landlords, understanding these changes isn't simply about compliance. Good property management means protecting your investment while ensuring your tenancy is managed professionally, fairly and in accordance with current legislation.

Here are some of the key rental law changes NSW landlords should understand in 2026.

1. No-Grounds Evictions Have Ended

One of the most significant changes to NSW rental laws is the removal of "no-grounds" terminations.

Since 19 May 2025, landlords have been required to provide a legally recognised reason when ending a tenancy, including at the end of a fixed-term agreement.

Valid grounds can include circumstances such as:

• the property being sold or offered for sale with vacant possession;
• the landlord or an eligible family member intending to move into the property;
• significant renovations or repairs requiring the property to be vacant;
• demolition of the property;
• changing the use of the property so it will no longer be a rental home; or
• a tenant breaching the tenancy agreement, including certain rent arrears situations.

Some grounds require supporting evidence to accompany the termination notice. Landlords must also provide the prescribed termination information statement when issuing a termination notice.

Importantly, the reason given must be genuine. Penalties can apply where a landlord or agent relies on a non-genuine ground or provides false or misleading supporting information.

Notice periods have also changed

The required notice period depends on the reason for termination and the type and length of tenancy.

For example, where a landlord proposes to sell a property with vacant possession, undertake significant renovations, change the property's use or have the landlord or family move in, the minimum notice is generally:

60 days for a fixed-term agreement of six months or less;
90 days for a fixed-term agreement longer than six months; and
90 days for a periodic agreement.

Different periods apply to other grounds, so landlords should obtain advice before issuing a termination notice rather than relying on an old template.

2. Rent Increases Are Limited to Once Every 12 Months

NSW landlords can generally only increase the rent once every 12 months, regardless of whether the tenancy is fixed-term or periodic.

The rule applies across tenancy types and has been in effect since 31 October 2024.

Landlords must also generally provide tenants with at least 60 days' written notice of a rent increase. The notice must specify the new rent payable and the date the increase will commence.

Renewing the lease does not automatically reset the 12-month period. Where the landlord remains the same, at least one tenant remains the same and the tenant has not moved out between agreements, the tenancy is treated as continuing for the purposes of the rent-increase rules.

For landlords, this makes regular rent reviews and accurate record keeping increasingly important.

3. New Rules for Pets in Rental Properties

Since 19 May 2025, landlords have had less discretion to simply say "no pets".

Tenants still need consent to keep a pet, other than an assistance animal, but landlords may only refuse a pet application on prescribed grounds.

A landlord has 21 days to respond to a valid pet application. If no response is provided within that period, the pet is automatically approved without conditions.

Permitted reasons for refusing a pet can include circumstances where:

• the property does not have appropriate fencing for the particular animal;
• there is insufficient space for the animal;
• the animal could not be kept humanely at the property;
• keeping the animal would breach another law;
• it is highly probable the animal would cause damage exceeding the rental bond;
• allowing the pet would result in an unreasonable number of animals at the property; or
• the landlord lives in the same home.

Landlords can also impose certain reasonable conditions when approving a pet.

The important message for landlords is that pet applications now need to be actively managed. Ignoring the request is not an effective way of refusing it.

4. Tenants Must Be Offered Free Ways to Pay Rent

Rental payment requirements have also changed.

Landlords and agents must provide tenants with an approved electronic bank transfer option without additional fees. From 2 March 2026, tenants must also be offered Centrepay as a payment option.

Tenants cannot be forced to use a particular third-party rental payment app or platform.

Other payment methods can still be used where both landlord and tenant agree, but the required fee-free options must remain available.

This is an important compliance area for self-managing landlords in particular.

5. Smart Rental Bonds Have Arrived

From 10 August 2026, NSW introduced Smart Rental Bonds.

This optional scheme allows eligible tenants moving between NSW rental properties to transfer their existing bond to their new property through Rental Bonds Online rather than having to fund an entirely separate bond while waiting for the previous one to be released.

For landlords, the important point is that the existing process for receiving agreed deductions and making bond claims has not fundamentally changed. The NSW Government states that Smart Rental Bonds do not change landlords' or agents' existing Rental Bonds Online processes.

6. Rental Bond Reporting Has Increased

From 1 July 2026, NSW Fair Trading began collecting additional information about how tenancies end through Rental Bonds Online.

When a landlord or agent claims or releases a rental bond, a mandatory survey must be completed within 14 days. It records who ended the tenancy and how, and where the landlord ended the tenancy, the reason for doing so.

This is another reason why accurate tenancy records and properly documented termination grounds are now particularly important.

7. Stronger Domestic Violence Protections From September 2026

Further reforms commenced on 21 September 2026, strengthening protections for tenants experiencing domestic violence.

Among the changes, landlords or agents receiving a valid domestic violence termination notice now have responsibility for notifying remaining co-tenants within seven days.

The reforms also strengthen protections concerning property damage caused by domestic abuse, tenancy database listings, security and lock changes, privacy and the recovery of a departing tenant's share of the rental bond.

There are also new requirements relating to photography and video used to advertise rental properties. Landlords or agents must provide seven days' notice before taking advertising photographs or video, and written consent is required before publication where the tenant's possessions are visible. Additional protections apply where domestic abuse is involved.

These provisions are particularly sensitive and should be handled carefully, confidentially and in accordance with the legislation.

8. Minimum Rental Standards Still Matter

While not a new 2026 reform, minimum property standards remain an important part of a landlord's obligations.

NSW rental properties must meet minimum standards relating to structural soundness, lighting, ventilation, electricity or gas, plumbing and drainage, hot and cold water, and bathroom and toilet facilities that provide appropriate privacy.

Importantly, these standards need to be maintained throughout the tenancy, not simply when the tenant moves in.

Regular inspections, preventative maintenance and prompt attention to repairs can therefore play an important role in both compliance and protecting the long-term value of an investment property.

What Do These Changes Mean for NSW Landlords?

The direction of NSW rental legislation is clear: property management is becoming increasingly regulated, documented and process-driven.

For landlords, that means seemingly straightforward decisions — such as ending a tenancy, reviewing the rent or responding to a pet request — now require greater attention to procedure, notice periods, prescribed forms and supporting evidence.

NSW Fair Trading has also established a dedicated Rental Taskforce to investigate and enforce rental law compliance. The Government reported in 2026 that the Taskforce had investigated almost 8,000 rental matters during its first year.

For investment property owners, professional management is therefore about more than collecting rent and organising repairs. It also means ensuring the tenancy is managed in accordance with an increasingly complex regulatory environment.

Protecting Your Investment in 2026

The rental market has changed considerably, but the fundamentals of successful property investment remain the same: select quality tenants, maintain the property, review the rent appropriately, keep accurate records and address issues before they become major problems.

The difference in 2026 is that landlords also need to ensure every step complies with current NSW tenancy legislation.

At Response Real Estate, our Property Management team can help landlords navigate these requirements while focusing on what matters most — protecting their property, maximising its potential and providing a professional experience for both landlords and tenants.

Thinking about leasing your property or reviewing how your investment is currently being managed? Contact the Response Real Estate Property Management team to discuss how we can help.

Disclaimer: This article provides general information only and should not be relied upon as legal advice. Residential tenancy laws can change, and individual circumstances vary. Landlords should obtain appropriate professional or legal advice where required.