The Residential Tenancies Act 2010 is the foundation of everything you do as a landlord in NSW. It's been significantly updated—the 2024 amendments are the biggest overhaul in decades.
Understanding your obligations isn't optional. Ignorance of the law is never a defence at NCAT, and mistakes can cost you thousands in lost rent, compensation orders, or fines.
This is Part 2 of our 6-part series on self-managing rental properties in NSW.
Quick Summary
- The Residential Tenancies Amendment Act 2024 brought major changes effective May 2025
- "No grounds" evictions are now unlawful—you need a valid reason with evidence
- Rent can only increase once per 12 months (all lease types)
- Tenants can request pets—you must respond within 21 days or it's automatically approved
- You must offer fee-free rent payment options (including bank transfer)
- A new Rental Taskforce enforces compliance with dedicated inspectors
What Changed in 2024–2025
NSW rental law underwent its biggest reform in decades. Here's the timeline:
October 31, 2024
- Extra fees banned: You cannot charge prospective tenants for background checks, application processing, or preparing the tenancy agreement
- Rent increase limit: Rent can only increase once per 12 months—applies to all leases (fixed and periodic)
May 19, 2025
- No grounds evictions ended: Landlords must have a valid, documented reason to end a tenancy
- Pet ownership simplified: Tenants can request pets; landlords can only refuse for specific reasons
- Fee-free rent payments: Must offer bank transfer and eventually Centrepay as fee-free options
June–July 2025
- Renovation notice changes: Updated documentation requirements when ending tenancy for renovations
- Bond data collection: NSW Fair Trading now collects data on why tenancies end
March 2, 2026 (Upcoming)
- Centrepay mandatory: Landlords must allow eligible tenants to pay via Centrepay (a free government bill-paying service for Centrelink recipients)
Key Legislation You Need
Residential Tenancies Act 2010
This Act governs all residential tenancies in NSW. It covers lease requirements, bond rules, entry rights, maintenance obligations, and dispute resolution.
Link: Residential Tenancies Act 2010
NSW Fair Trading
NSW Fair Trading administers the Act. They provide fact sheets, templates, and the Rental Bonds Online portal. Their website is your first stop for any rental law question.
Link: NSW Fair Trading - Renting
NCAT (NSW Civil and Administrative Tribunal)
NCAT resolves disputes between landlords and tenants—rent arrears, bond claims, lease breaches, maintenance disputes, and termination applications.
Link: NCAT - Tenancy Disputes
Your Obligations as a Landlord
Provide a Habitable Property
Your property must be "fit for habitation"—safe, secure, structurally sound, and reasonably livable. This includes:
- Working plumbing, electricity, and gas (if applicable)
- Adequate weatherproofing
- Functioning smoke alarms (photoelectric, tested annually)
- Secure locks on all external doors and windows
- Adequate ventilation and lighting
You cannot transfer these obligations to the tenant—any lease clause attempting this is void.
Maintain the Property
You're responsible for repairs and maintenance throughout the tenancy:
- Urgent repairs (burst pipes, gas leaks, dangerous electrical faults, broken essential services): Must be addressed immediately. If you're unreachable, tenants can arrange repairs up to $1,000 and you must reimburse within 14 days.
- Non-urgent repairs: Must be addressed within a reasonable time (generally 14–30 days)
- Structural issues, plumbing, electrical, and appliances you provide: Your responsibility
Respect Quiet Enjoyment
Tenants have a legal right to use the property without interference. You cannot:
- Enter without proper notice (except genuine emergencies)
- Harass or pressure tenants to leave
- Interfere with their reasonable use of the property
- Cut off or interfere with utilities
Breach penalties: Compensation orders at NCAT, fines up to $2,200
Meet Administrative Requirements
Two critical requirements catch first-time landlords:
-
Lodge bond within 10 business days of receiving it via Rental Bonds Online. Failure is a criminal offence with fines up to $2,200—and you may forfeit your right to claim against the bond.
-
Provide signed lease copy within 14 days of both parties signing.
What You Cannot Do
Illegal Lease Terms
The following clauses are automatically void, even if signed:
- Penalty clauses (e.g., "$100 fine for late rent")
- Requirements that tenants pay your legal costs
- Clauses that waive tenant rights under the Act
- Terms that shift your maintenance obligations to the tenant
Use the standard NSW residential tenancy agreement—it's mandatory.
Harassment or Intimidation
This is illegal regardless of circumstances. It includes:
- Threatening texts, calls, or letters
- Showing up unannounced repeatedly
- Pressuring tenants to leave
- Interfering with utilities
Even if rent is overdue, you must follow the legal process. Self-help eviction is illegal in NSW.
Improper Rent Increases
Rent increases are restricted:
- Maximum once per 12 months (any lease type)
- 60 days written notice using the official form
- Increase must not be excessive (tenants can challenge at NCAT)
More frequent increases are void and unenforceable.
Illegal Entry
You cannot enter without proper notice except in genuine emergencies:
| Purpose | Notice Required | Timing |
|---|---|---|
| Routine inspection | 7 days | Weekdays 8am–8pm, Saturdays 9am–5pm |
| Repairs (non-urgent) | 2 days | Reasonable hours |
| Urgent repairs | No notice | Any time |
| Prospective tenants | Reasonable notice + tenant agreement | Reasonable hours |
| Genuine emergency | No notice | Any time |
"Genuine emergency" means fire, flood, gas leak, serious structural damage—not "I want to check on the property."
Discrimination
Refusing tenants based on protected attributes is illegal under NSW anti-discrimination law:
- Race, religion, sex, disability
- Having children, marital status, sexual orientation
- Age, pregnancy, carer responsibilities
You can refuse based on legitimate criteria: insufficient income, poor rental history, inadequate references.
Link: Anti-Discrimination NSW
Ending a Tenancy (2025 Rules)
The May 2025 changes fundamentally altered how tenancies end. "No grounds" evictions are now unlawful.
Valid Grounds for Termination
You can only end a tenancy for specific, documented reasons:
| Reason | Notice Period | Re-letting Restriction |
|---|---|---|
| Property to be sold with vacant possession | 90 days | 6 months |
| Landlord or family member moving in | 90 days | 6 months |
| Property no longer to be rented (12+ months) | 90 days | 12 months |
| Significant renovations requiring vacancy | 60 days | 4 weeks after completion |
| Tenant breach (after warning) | Varies | None |
| Rent arrears (14+ days overdue) | 14 days | None |
| End of fixed term (with valid reason) | 30 days | Depends on reason |
Documentation Required
You must provide evidence supporting your reason:
- Sale: Contract of sale or agent authority
- Renovation: Plans, council approvals, contractor quotes showing work requires vacancy
- Family moving in: Statutory declaration
Penalties for False Reasons
If you claim a reason but don't follow through (e.g., claim renovations but re-let immediately), you face:
- Fines up to $11,000
- Compensation orders to the former tenant
- Rental Taskforce investigation
Re-letting Restrictions
Where you end a tenancy for certain reasons, you cannot re-let for a specified period. NSW Fair Trading monitors compliance through Rental Bonds Online data.
Pet Ownership Rules
Since May 2025, tenants have stronger rights regarding pets.
The Process
- Tenant makes a written request to keep a pet
- You have 21 days to respond in writing
- If you don't respond, the request is automatically approved
When You Can Refuse
You can only refuse if:
- Keeping the pet would breach strata by-laws
- The property is genuinely unsuitable (e.g., no fencing for a large dog)
- Keeping the pet would cause the landlord to breach another law
What You Cannot Do
- Refuse without a valid, specific reason
- Require increased rent as a condition of approval
- Require increased bond as a condition of approval
- Blanket "no pets" policies are no longer enforceable
Practical Approach
Most pet requests are reasonable. Dogs and cats in houses with yards rarely cause issues. If you have concerns, add a specific pet clause covering:
- Type and number of pets approved
- Flea treatment requirements
- Garden/lawn maintenance responsibilities
- Professional carpet cleaning at lease end (if appropriate for the property)
Rent Payment Options
From May 19, 2025, you must offer at least one fee-free and accessible payment option.
Minimum Requirements
- Bank transfer must be available as a fee-free option
- From March 2, 2026: Centrepay must be offered to eligible tenants
What This Means
- You cannot charge tenants fees for paying rent
- You cannot require payment only through systems that charge the tenant fees
- Direct bank deposit remains the simplest compliant option
Common Mistakes That Cost Landlords
-
Not lodging bond within 10 days — Criminal offence, fines up to $2,200, may forfeit bond claim rights
-
Using non-compliant leases — Illegal clauses are void; use the standard NSW agreement
-
Entering without proper notice — Breach of quiet enjoyment, tenant can claim compensation
-
Increasing rent incorrectly — More than once per year or without 60 days notice is void
-
Ending tenancy without valid grounds — Under 2025 laws, this is unlawful with significant penalties
-
Poor documentation — "He said, she said" loses at NCAT; keep everything in writing
-
Not responding to pet requests — Silence for 21 days = automatic approval
Staying Current
NSW rental law continues to evolve. Stay informed:
- NSW Fair Trading News — Subscribe to email updates
- Tenants' Union Law Changes — Clear explanations of recent changes
- Review quarterly — Set a calendar reminder to check for updates
What's Next
Now that you understand the legal framework, the next post covers Finding Your First Tenant—from preparing your property to signing the lease.
Full Series:
- Is Self-Managing Right for You?
- NSW Rental Laws Every Landlord Must Know (this post)
- Finding Your First Tenant
- Day-to-Day Property Management
- When Things Go Wrong
- Tax Guide for Australian Landlords
Sources & Further Reading
- NSW Fair Trading - Renting — Official guidance and forms
- Residential Tenancies Act 2010 — The legislation
- Changes to Rental Laws - NSW Government — 2024–2025 reform summary
- NCAT - Tenancy Disputes — Tribunal information
- Tenants' Union - Law Changes — Clear explanations of recent reforms