New South Wales Residential Tenancy Laws: Complete Guide for Landlords

The residential rental landscape in New South Wales (NSW) is governed primarily by the Residential Tenancies Act 2010, which has undergone significant and sweeping reforms throughout 2024 and 2025. These changes fundamentally shift the balance of rights, eliminating "no-grounds" evictions, capping rent increases, and enforcing stricter disclosure rules.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Tenancy laws in NSW change rapidly. Always consult the NSW Civil and Administrative Tribunal (NCAT) guidelines or a licensed property lawyer for advice specific to your situation. Information last verified: March 2026.

Key NSW Rental Laws at a Glance

Security Deposits (Rental Bonds)

In NSW, a security deposit is historically referred to as a rental bond. Landlords and agents cannot demand a bond exceeding the equivalent of four weeks' rent.

Crucially, all bonds must be lodged with NSW Fair Trading via Rental Bonds Online. Landlords are prohibited from holding the bond money themselves. Starting in 2025, the government also introduced a "Portable Bonds scheme" allowing tenants to transfer existing rental bonds directly between rental properties to reduce financial friction.

For more detail, see our Security Deposits deep dive.

Eviction Procedures (End of "No-Grounds")

As of May 19, 2025, "no-grounds" evictions are completely unlawful in NSW. Landlords can no longer ask a tenant to leave without a clearly defined, legally valid reason, regardless of whether the tenant is on a periodic or fixed-term lease.

Valid reasons for a landlord to end a tenancy now include:

• The landlord is selling the property.
• Significant renovations or repairs are required that necessitate vacancy.
• Change of use for the property (e.g., commercial zoning).
• The landlord or their immediate family intends to move into the property.
• Breach of the tenancy agreement by the tenant (e.g., non-payment of rent, severe property damage).

Landlords must provide supporting evidence alongside any termination notice. Notice periods generally range between 60 and 90 days depending on the reason.

For more detail, see our Eviction Process guide.

Rent Increases

NSW has actively clamped down on rent hikes to protect affordability. Rent increases are now strictly limited to once every 12 months for all periodic agreements and the vast majority of fixed-term agreements.

Landlords must provide a minimum of 60 days' written notice before any rent increase takes effect. Tenants possess the statutory right to challenge a proposed rent increase at the NSW Civil and Administrative Tribunal (NCAT) within 30 days if they believe it is excessive compared to the general market.

For more detail, see our Rent Increases guide.

Required Disclosures

Transparency obligations for landlords have never been higher. Before a tenant signs an agreement, landlords or their agents must disclose "material facts," including:

• If the property is slated for sale.
• If it has been affected by a natural disaster (flooding, bushfire) in the past five years.
• If it was used for the manufacture or cultivation of prohibited drugs in the past two years.
• Active strata renewal committees or major scheduled strata repairs.
• Combustible cladding orders.
• For strata properties, a full copy of the by-laws must be provided.

Failure to make these disclosures gives the tenant the immediate right to terminate the agreement with 14 days' notice without penalty.

For more detail, see our Required Disclosures guide.

Maintenance and Habitability

Under NSW law, landlords must supply the premises in a "reasonably clean" condition and maintain it in "reasonable repair," considering the property's age and target rent. This includes the mandatory installation of water-efficient fixtures like dual-flush toilets.

Tenants must notify landlords of damage or required repairs quickly and must leave the property in the same condition it was provided, barring fair wear and tear.

For more detail, see our Maintenance Obligations guide.

Late Fees

NSW places heavy restrictions on tenant-side fees. Landlords cannot charge "extra fees" for background checks, lease preparation, or specific payment methods. As of recent reforms, landlords must offer tenants fee-free electronic payment methods (like standard bank transfers).

While landlords cannot arbitrarily levy "late fees" as a percentage penalty, consistent failure to pay rent on time allows the landlord to issue a termination notice for breach of agreement.

For more detail, see our Late Fees guide.

Getting Started with Compliance

Navigating NSW property law requires meticulous record-keeping, especially with the 2025 eviction changes requiring documented evidence and adhering to strict 12-month rent increase gaps. Landager automates these timelines directly within your property dashboard.

Explore more NSW compliance topics:

• Security Deposits (Rental Bonds)
• Eviction Process
• Required Disclosures
• Rent Increases
• Lease Requirements
• Maintenance Obligations
• Late Fees