NSW Tenancy Law Changes Every Surry Hills and Darlinghurst Landlord Needs to Know in 2026

The Residential Tenancies Amendment Act 2024 has reshaped the rules for every NSW landlord. Here is a plain-English breakdown of what has changed, what it means for your investment, and what you need to do to stay compliant.

NSW tenancy legislation has changed more in the past 18 months than in the previous decade. The Residential Tenancies Act 2010 (NSW) remains the governing statute, but it has been substantially amended by the Residential Tenancies Amendment Act 2024 and the associated Residential Tenancies Amendment Regulation 2025. Most of these reforms took effect from 19 May 2025, with a handful of additional obligations flowing through into 2026.

For landlords with investment properties in Surry Hills, Darlinghurst and the inner-Sydney belt, the stakes are real. Penalties for non-compliance can be significant, disputes are increasingly resolved in favour of tenants, and a newly established NSW Fair Trading Rental Taskforce has dedicated inspectors enforcing the rules. This article walks through each of the key changes so you know exactly where you stand.

Rent increase frequency, once every 12 months

Under the amended Act, rent can only be increased once in any 12-month period, regardless of the type of lease. This rule now applies to all residential tenancies, including short fixed-term agreements of less than two years , which had previously been exempt.

In practical terms, this means you cannot increase rent at the end of a fixed-term lease and then again a few months later when the tenancy rolls over onto a periodic arrangement. The 12-month clock resets from the date of the last increase, not from the start of a new lease.

Landlords who attempt to increase rent more frequently than once every 12 months can face a penalty notice from NSW Fair Trading. If you are unsure when the last increase occurred, particularly for a property you have recently taken ownership of, or recently switched agencies on, verify the date before issuing any new notice.

Notice periods, what has changed for landlords

he biggest structural change to NSW tenancy law is the abolition of ‘no grounds’ terminations. Before 19 May 2025, a landlord could end a periodic tenancy with 90 days’ notice and no explanation required. That is no longer the case. Under the amended Act, every termination must be grounded in one of the prescribed statutory reasons.

Acceptable grounds for ending a tenancy include:

  • Breach of the agreement by the tenant (including non-payment of rent or damage to the property)
  • Sale of the property requiring vacant possession
  • The landlord or an immediate family member intending to move in
  • Significant renovations, demolition, or the property being permanently removed from the rental market
  • Change of use (for example, converting to commercial premises)

Termination notices must now be accompanied by a statutory information statement and, in many cases, supporting evidence, such as a signed contract of sale or development consent. Providing a notice without a genuine ground, or providing supporting documents that are false or misleading, carries heavy penalties.

Lease typeMinimum notice to end tenancy
Periodic (ongoing) tenancy90 days
Fixed-term lease of 6 months or less60 days (not before the end of the fixed term)
Fixed-term lease of more than 6 months90 days (not before the end of the fixed term)


Minimum standards for rental properties in NSW

For a property to be lawfully leased in NSW, it must meet minimum habitability standards under the Residential Tenancies Act. These have been in place for some time, but enforcement has sharpened alongside the broader 2024 reforms.

At a minimum, a rental property must provide:

  • Weatherproofing, the property must be structurally sound and free from major water ingress
  • Working locks on all external doors and windows
  • Adequate natural light and ventilation in all habitable rooms
  • A functional bathroom, toilet and kitchen
  • Working smoke alarms installed in accordance with the requirements set out in the Act
  • Freedom from vermin, damp or mould caused by structural defects

From 23 March 2025, there is also a specific water efficiency requirement: if you wish to charge your tenant for water usage, all toilets in the property must be dual-flush with a minimum 3-star WELS (Water Efficiency Labelling and Standards) rating. Properties that do not comply cannot pass water charges on to tenants.

If a property fails to meet minimum standards, the tenant has the right to request urgent repairs, apply to the NSW Civil and Administrative Tribunal (NCAT) for a rent reduction, and in serious cases, break the lease without penalty. The cost of getting this wrong, financially and in terms of the landlord-tenant relationship, is significant.

Entry and inspection requirements

A landlord or agent’s right to enter an occupied rental property is strictly governed by the Act. Tenants have a right to reasonable peace, comfort and privacy, and unauthorised entry is a breach of the law that can be reported to NSW Fair Trading.

For routine inspections, the rules are:

  • A landlord or agent may inspect the property no more than four times in any 12-month period
  • At least seven days’ written notice must be given before each routine inspection
  • The notice must state the reason for the entry

For properties being marketed for sale during a tenancy, 14 days’ written notice is required before the first inspection by prospective buyers. After that initial notice, the tenant can agree on a suitable schedule but cannot be required to accommodate more than two inspections per week, each requiring 48 hours’ notice.

All days in any notice period are calendar days, not working days, weekends and public holidays are included. The day the notice is given does not count as day one.

End-of-tenancy obligations and bond returns

The process for ending a tenancy and returning a bond has also been tightened. When a tenancy concludes, the landlord or agent has 14 days from when the tenant vacates to lodge a bond claim via Rental Bonds Online, and from 1 July 2025, must simultaneously complete a mandatory survey recording how and why the tenancy ended.

Failure to complete the survey within 14 days can result in a penalty notice from NSW Fair Trading. This applies regardless of who initiated the end of the tenancy.

On the bond itself, the general principle under the Act remains unchanged: the bond is the tenant’s money, held in trust by NSW Fair Trading, and must be returned unless there is a valid claim for cleaning, damage beyond fair wear and tear, or unpaid rent. Landlords who make claims they cannot substantiate risk having those claims dismissed at NCAT, with the bond returned in full to the tenant.

Upfront fees at the start of a tenancy have also been restricted. Since October 2024, landlords and agents cannot charge tenants or prospective tenants for background checks, identity verification, or the preparation of a tenancy agreement. These costs must now be borne by the landlord or agency.

What these changes mean for how your property is managed

Taken together, these reforms represent a meaningful increase in the compliance burden on NSW landlords. The legislation is more prescriptive, the enforcement is better resourced, and the consequences of getting things wrong, penalties, NCAT hearings, bond disputes, and the reputational risk of a formal complaint, are more likely to materialise than they were five years ago.

For landlords self-managing a property in Surry Hills or Darlinghurst, staying across every change to the Act, and applying it correctly to each specific tenancy situation, is a significant ongoing commitment. A missed notice period, a non-compliant rent increase, or a termination notice issued on incorrect grounds can expose you to real financial risk.

If you are currently self-managing or working with an agency that has not clearly communicated these changes to you, it may be worth reviewing your situation. You can also switch property managers mid-lease in NSW, it is a straightforward process and does not require your tenant’s involvement.

For more information on your obligations as a NSW landlord, the primary references are the Residential Tenancies Act 2010 (NSW) and the NSW Fair Trading renting guide. Both are publicly available and updated regularly as the legislation changes.

You can also read our guide on switching property managers mid-lease in NSW, a question we hear often from landlords who have realised they need a more compliance-focused approach.

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