NSW has rolled out one of the bigger rental law reform packages in years, and most of it is now in force. If you're a tenant or you own an investment property, here's a plain-English summary of what's actually changed and what it means in practice.
For the official detail, NSW Fair Trading's "Changes to Rental Laws" page has the up-to-date specifics — we'd encourage you to bookmark it.
End of "no-grounds" evictions
This is the headline change. Previously, landlords could end a periodic tenancy without giving a reason as long as they provided the required notice. That's no longer the case. Under the new rules, landlords need to provide a legitimate reason to end any tenancy — fixed-term or periodic.
Acceptable reasons include things like:
- Selling the property
- Significant renovations
- Owner or family member moving in
- Breach of the tenancy agreement (rent arrears, damage, etc.)
- Property no longer being used as a rental
Each reason has its own notice period and evidence requirements.
What this means for tenants
More security. If you're paying rent and looking after the property, you can't be removed without a real reason being provided. The Tribunal will look at whether the stated reason is genuine, particularly if a property is "sold" or "renovated" and then immediately re-let to a new tenant.
What this means for landlords
You haven't lost the ability to manage your investment — you just need to be prepared to articulate why you're ending a tenancy and document it. The reforms aren't designed to trap landlords in tenancies that aren't working; they're designed to remove arbitrary or retaliatory terminations.
For owners with us at Hunter PM, we'll guide you through which ground applies to your situation and make sure the notice meets the new evidence standards.
Pets
The pet rules are tighter for landlords. Tenants still need to ask, but landlords now have to give legitimate reasons for refusing. We've covered this in more detail in our pet application blog.
Rent increases
Rent can still be increased, but the framework around frequency and review rights is being tightened. Tenants who think an increase is excessive can apply to NCAT to have it reviewed.
Background checks and application data
The reforms include changes to what data agents can keep about applicants and how long it can be held. This is good news for renters who've felt that information has followed them around the rental market.
Practical takeaways
For tenants:
- You have more security than you used to. Use it sensibly.
- Read your notices carefully. If a reason given doesn't ring true, you can challenge it.
For landlords:
- Get advice before issuing a termination. The cost of a bad notice is months of process.
- Lean on your property manager — knowing which ground applies and gathering the right evidence is what we do.
The full reforms are detailed at nsw.gov.au under Fair Trading's rental law changes page.