Changes to NSW Rental Laws: What Property Investors Need to Know
- Don Su
- Apr 28
- 3 min read
The NSW Government has recently introduced major changes to rental laws, aiming to create a fairer balance between tenants and landlords. While these reforms are designed to protect renters, they also introduce important new obligations for property investors and landlords that could impact how rental properties are managed.
Below, we break down the key changes and how they may affect property owners.
1. Ending a Tenancy: Landlords Must Provide a Reason
Under the new rules, landlords can no longer end a lease without providing a valid reason.
Acceptable grounds for termination include:
Selling the property,
Major renovations,
Moving back into the property (for personal use or immediate family).
Notice Period:
Landlords must now give tenants at least 90 days’ written notice if ending a periodic agreement for a legitimate reason.
This limits the flexibility investors previously had to end tenancies at will and may require more planning if you intend to sell or renovate your property.
2. Restrictions on Reletting After Ending a Tenancy
In cases where a landlord ends a tenancy to “move in” or to “undertake major repairs or renovations,” they must follow a reletting restriction:
You cannot relet the property to a new tenant for between 4 weeks and 12 months after ending the tenancy, unless the reason you gave (e.g., moving in or renovating) genuinely occurred.
This change is designed to prevent misuse of “false reasons” for eviction and could lead to penalties if a landlord is found to have relet the property in breach of this rule.
3. Pets: Easier for Tenants to Apply
The pet approval process has been streamlined:
Tenants can formally request to have a pet.
Landlords must respond within 21 days.
If there’s no response, consent is automatically granted.
A landlord can only refuse permission based on specific reasons, such as unsuitable property type (e.g., a high-rise apartment may not suit a large dog) or legal restrictions.
Impact on investors:
You may need to prepare for properties being more likely to have pets — meaning insurance policies and maintenance considerations may need reviewing.
4. Payment of Rent: No Mandatory Fees
New laws require landlords to offer tenants at least one fee-free way to pay rent (such as bank transfer).
If you use payment platforms that charge tenants a fee (like some debit/credit card services), you must now provide an alternative that doesn’t incur a cost to the tenant.
Impact on investors:
This could affect how you set up rental collection processes, especially if your property manager uses payment platforms that traditionally passed costs onto tenants.
What Should Property Investors Do Now?
Review your lease templates and termination processes to ensure compliance with the new grounds for eviction and notice periods.
Update your tenancy agreements to include the pet approval process and permitted rent payment methods.
Plan carefully before ending a tenancy, especially if you intend to move back in or renovate — and ensure documentation supports your reason.
Adjust your risk management, including landlord insurance policies that cover potential pet-related damages.
Stay informed about portable bond initiatives and rent cap enforcement mechanisms coming later this year.
Final Thoughts
The changes to NSW rental laws represent a significant shift in the rental landscape.
For property investors, success moving forward will require more careful planning, clearer documentation, and stronger compliance with tenancy law.
Understanding your new obligations early will help protect your investment and maintain good relationships with tenants — all while avoiding potential fines or disputes.
If you would like tailored advice on how these changes may impact your rental property portfolio, feel free to get in touch.
For the full official announcement, you can read more here:
Need personalised advice?
👉 Contact us today to see how we can help you adjust your rental property strategy.
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