If you’re a landlord in NSW, especially one with an investment property in Western Sydney, you’ve probably heard me mention these changes before. Now that we’re approaching the rollout date, it’s time to take a deeper dive.
Some of these changes are significant. Not all of them will be welcomed by landlords. But like any shift in the market, the key is preparation. Even with added responsibilities or short-term costs, real estate remains one of the most proven paths to long-term wealth creation.
Let’s unpack what’s changing, what it means for you, and how to stay ahead of the curve.
THE END OF ‘NO GROUNDS’ EVICTIONS
This is the biggest headline: landlords will no longer be able to end a tenancy without providing a valid reason.
What’s changing:
Previously, landlords could terminate a lease at the end of a fixed term, or during a periodic lease, without specifying a reason.
From May 19, 2025, this will no longer be allowed.
What it means:
You’ll need to clearly state your reason for ending a lease & it must fall within the approved grounds under the updated Residential Tenancies Act.
Valid Reasons to End a Tenancy:
You can still end a lease, but only for one of the following reasons:
- You or a family member intend to move into the property
- You plan to sell the property
- Major renovations or repairs that make the property uninhabitable for at least four weeks
- You’re going to knock down the property
- The property will no longer be rented out (e.g. it will become a holiday home or be left vacant)
- Existing reasons to justify a lease termination such as arrears, damage & threats are all still valid
These reasons must be clearly documented & in some cases, you may be asked to show supporting evidence (e.g. a sales agency agreement, renovation quotes, or statutory declaration).
RE-LETTING AFTER TERMINATION
This one’s important & it could catch some landlords out.
If you end a tenancy for a stated reason, you can’t just change your mind and re-lease the property right away.
Here’s how long you must wait before re-letting:
- 12 months if you said the property would no longer be rented
- 6 months if you said you or a family member were moving in, or if the property was to be sold or demolished
- 4 weeks if you said the property needed major repairs or renovations
What if you re-let sooner?
NSW Fair Trading may investigate & issue penalties if they believe the original reason was false or misused.
💡 Tip:
Be sure of your intentions before ending a tenancy. If plans change unexpectedly, speak to your property manager about how to navigate the situation legally.
PET REQUESTS: WHAT LANDLORDS CAN & CAN’T SAY NO TO
Another big shift in 2025 is how pet requests are handled. This is one change that’s already got a few eyebrows raised & for good reason.
What’s changing:
Tenants will now have the right to formally request permission to keep a pet & landlords can’t simply say “no” without a valid reason.
You’ll need to:
- Respond to the request within 21 days
- Provide a legitimate reason if you refuse (e.g. strata restrictions, safety risks, or unsuitable property conditions)
- If no response is given within 21 days, the request is automatically considered approved.
Important:
- You can no longer have a blanket ‘no pets allowed’ clause in your leases
- You can request reasonable conditions (e.g. cleaning clauses, extra carpet cleaning) but these must comply with Fair Trading guidelines
- You cannot advertise a property with ‘no pets allowed’
💡 Tip:
If your property is part of a strata complex, check the by-laws. Strata restrictions may override tenancy agreements, but you’ll need to provide evidence.
Can you still say no?
Yes… but only if you can back it up. Examples might include:
- The property isn’t fenced and would pose a safety risk
- The pet is unsuitable for the dwelling (e.g. a large dog in a small upstairs unit)
- There are valid strata by-laws prohibiting pets
But the takeaway is that there has to be a specific reason to deny the request.
LONGER NOTICE PERIODS
You’ll now need to give more notice when ending a tenancy, especially on fixed-term agreements.
New minimum notice periods:
- 90 days for periodic agreements
- 60 days for fixed-term leases of 6 months or less (notice can’t end before lease expiry)
- 90 days for fixed-term leases longer than 6 months (also can’t end before lease expiry)
Why this matters:
It reduces flexibility for landlords, especially if you’re planning a sale or renovations. If you’re thinking of ending a lease in the next 3–6 months, now’s the time to plan.
WATER EFFICIENCY REQUIREMENTS
If you want to charge tenants for water usage, your property must comply with new minimum standards:
- Dual-flush toilets
- Showerheads with a flow rate of no more than 9 litres per minute
- No leaking taps or toilets at the start of the tenancy (common sense)
- Each property must be individually metered
💡 Tip:
If you’re unsure whether your property is compliant, get a plumber to assess it before your next tenancy begins.
PORTABLE RENTAL BONDS (Coming Soon)
The NSW Government is introducing a portable bond scheme in the second half of 2025.
What is it?
Tenants will be able to carry their bond from one property to the next, instead of paying a new bond for the new property.
How does it affect you?
There’s no immediate impact for landlords, but it may change how bonds are managed in future, especially during mid-tenancy transitions. This is one we’re going to have to see more information on the exact details from the NSW Government.
FINAL THOUGHTS FROM JOSH
There’s no sugar coating it – this is a big reform package.
As with all legislation changes, it will take some time for the dust to settle. But from my experience, the landlords who adapt early and stay proactive tend to fare the best in the long run.
Some of these changes will add new layers of responsibility. Some may feel restrictive. But your investment remains just that – an investment.
With the right management & advice, property continues to be one of the most reliable wealth-building tools available.
