NSW is in the middle of the most significant overhaul of its rental laws in over a decade. The Residential Tenancies Amendment Act 2024 amended the Residential Tenancies Act 2010, and the changes are rolling out in stages — some already in effect, others landing before the end of 2026.
If you rent in Sydney or regional NSW, or you manage an investment property, these reforms are already reshaping your rights, obligations, and daily practice. Here is a complete breakdown of what has changed, what is still to come, and what it means in practical terms.
The Legislative Framework
The reforms sit under the Residential Tenancies Amendment Act 2024, which amended the Residential Tenancies Act 2010 (NSW). The NSW Government has rolled out changes across multiple stages, beginning with rent increase caps and fee prohibitions in late 2024, and continuing through to domestic violence protections arriving in September 2026.
A dedicated Rental Taskforce has been established to oversee compliance and enforcement across the rental sector. The reforms were developed in consultation with tenant advocacy groups, property industry bodies, and legal aid organisations, and they represent a deliberate effort to rebalance a rental market that has favoured landlords for much of the past decade.
Already in Effect
Rent Increases: Capped to Once Per Year
Since 31 October 2024, landlords in NSW can only increase rent once per 12-month period — regardless of whether the tenancy is under a fixed-term or periodic agreement. This applies to all lease types and removes the previous uncertainty around how frequently increases could be issued during ongoing tenancies.
In a market where Sydney's median rent remains well above $600 a week, this cap gives renters predictable cost-of-living planning while still allowing landlords to adjust to market conditions on a reasonable cycle.
Start-of-Tenancy Fees Prohibited
From the same date, landlords and agents are expressly prohibited from charging fees at the beginning of a tenancy. This covers background checks, agreement preparation costs, and any other administrative charges that tenants previously absorbed when moving in. The cost of onboarding a new tenant now sits with the property owner.
No-Grounds Evictions Banned
From 19 May 2025, landlords in NSW must have a valid reason to end a tenancy. No-grounds evictions — previously lawful at the end of fixed-term agreements — are now unlawful. Landlords must provide supporting documentation for certain termination reasons, and longer notice periods apply for fixed-term endings.
This is one of the most consequential changes in the reform package. For years, NSW renters faced the possibility of being asked to leave without explanation, particularly at lease renewal. That practice is now over. The changes also make it easier for tenants to keep pets in rental properties.
Fee-Free Bank Transfer Rent Payments
From 19 May 2025, landlords and agents must offer tenants the option to pay rent by bank transfer at no fee. This eliminates a range of payment-processing costs that were previously passed through to renters, particularly through third-party rent-payment platforms.
Supporting Documents for Renovation-Based Terminations
From 20 June 2025, tighter requirements apply to the supporting documentation landlords must provide when ending a tenancy due to significant renovations or repairs. This closes a loophole that was occasionally used to remove tenants under the guise of renovation work.
Centrepay Rent Payment Option
From 2 March 2026, landlords and agents must offer tenants the option to pay rent through Centrepay — the government's direct bill-payment service. This is particularly relevant for tenants receiving Centrelink payments, giving them a streamlined and reliable payment channel.
What Is Coming in 2026
Tenancy Ending Data Collection — 1 July 2026
From 1 July 2026, data on tenancy endings must be collected through Rental Bond Online. This creates a clearer picture of why tenancies end — whether by mutual agreement, landlord termination, tenant departure, or other means — and gives regulators better visibility into compliance across the market.
For tenants and landlords, the practical impact is that tenancy endings will be recorded more thoroughly, which strengthens accountability on both sides.
Smart Rental Bonds — From 10 August 2026
Starting 10 August 2026, the NSW Government will roll out Smart Rental Bonds on a staged basis. This optional scheme allows tenants to transfer an existing bond to a new rental property, reducing the need to fund a second bond upfront while the first remains held.
In practice, this removes one of the biggest financial barriers to moving between rentals. Tenants who are transitioning between properties — whether due to lease end, relocation, or change in circumstances — will not need to find two bonds simultaneously. The scheme is voluntary for both tenants and landlords at launch, with broader uptake expected as the system matures.
Strengthened Domestic Violence Protections — 21 September 2026
From 21 September 2026, a suite of enhanced domestic violence protections takes effect. These include:
- Easier pathways to end a tenancy early for DV survivors
- Liability protections for property damage caused by a domestic violence situation
- Improved bond recovery rights from co-tenants
- Enhanced security and privacy protections
- Right to change locks
- Restrictions on tenancy database listings related to DV-related lease breaks
These protections are designed to remove practical barriers that have historically made it harder for DV survivors to leave unsafe situations. The ability to break a lease without financial penalty, change locks for safety, and avoid adverse tenancy database listings represents a significant shift in how the law balances tenant safety against property interests.
What This Means for the NSW Market
NSW's reforms are not a single policy change — they are a structured, staged reset of the state's rental framework. Unlike Victoria's approach of rolling reforms into concentrated tranches, NSW has spread changes across nearly two years, giving both tenants and landlords time to adapt to each shift.
For renters, the protections are concrete: no more no-grounds evictions, rent increases limited to once per year, free bank transfer payments, and Centrepay access. For landlords and property managers, the compliance landscape is evolving steadily, and the emphasis on documentation — particularly around evictions and renovation-based terminations — will only intensify.
The Smart Rental Bonds scheme, when fully operational, has the potential to reduce friction in Sydney's rental market, where bond costs are among the highest in the country. The DV protections, while specific in their application, also signal a broader legislative trend: rental law is increasingly being shaped by social policy objectives, not just property rights.
If you are a landlord, treat the next 12 months as a compliance review window. Ensure your eviction processes are properly documented, your rent-increase timing is tracked, and you are offering the required payment methods. If you are a renter, know that the rules have shifted materially in your favour — and know where to go if they are not being followed.
For property managers handling multiple portfolios, the staged rollout creates a particular challenge: compliance obligations are not arriving all at once but across six different dates over two years. Tracking which rules apply at any given point requires proactive calendar management, not reactive responses to tenant complaints or tribunal proceedings. The emphasis on documentation — supporting reasons for evictions, evidence for renovation-based terminations, records of payment method offerings — means that processes and record-keeping systems need to be updated well before each deadline.
Districts' suburb data across NSW can help you understand how these reforms intersect with local rental market conditions, and our methodology page explains how we use data to inform that analysis.
Frequently Asked Questions
Can a landlord evict a tenant without a reason in NSW?
No. Since 19 May 2025, landlords in NSW must have a valid reason to end a tenancy. No-grounds evictions are unlawful. Landlords must provide supporting documentation for certain termination reasons, and longer notice periods apply for fixed-term endings.
How often can rent be increased in NSW?
Rent can be increased once per 12-month period for all lease types, including fixed-term and periodic agreements. This has been in effect since 31 October 2024.
What is the Smart Rental Bonds scheme in NSW?
Smart Rental Bonds, launching from 10 August 2026, is an optional scheme that lets tenants transfer an existing bond to a new rental property. This reduces the need to fund a second bond upfront while the first remains held, making it easier to move between rentals.
What new domestic violence protections apply to NSW renters from September 2026?
From 21 September 2026, DV protections include easier lease termination, liability protections for property damage caused by DV, improved bond recovery from co-tenants, enhanced security and privacy protections, lock change rights, and restrictions on adverse tenancy database listings related to DV lease breaks.
Can landlords still charge fees when a tenant moves in?
No. Since 31 October 2024, landlords and agents are prohibited from charging start-of-tenancy fees. This covers background checks, agreement preparation, and other administrative costs previously passed through to tenants.
What payment methods must landlords offer NSW tenants?
From 19 May 2025, landlords must offer fee-free bank transfer as a rent payment option. From 2 March 2026, they must also offer Centrepay as a payment channel.