NSW Rental Law Changes 2025-2026: What Property Managers Need to Know and Do Now

New South Wales has been rolling out the most substantial changes to its tenancy law since the Residential Tenancies Act 2010 was enacted. The reforms were made by the Residential Tenancies Amendment Act 2024, passed by the NSW Parliament in October 2024, and have commenced in stages through 2025 and into 2026.

For property managers, these are not incremental tweaks. They change how tenancies can be ended, how pet requests must be handled, how rent can be paid, and what must happen at the end of every bond. Each change has practical implications for your day-to-day operations, your technology systems, and how you document property condition.

The key commencement dates:

31 October 2024 — rent increases limited to once per 12 months for all leases.

19 May 2025 — no-grounds evictions ended; new pet application framework; fee-free rent payment requirement; ban on charging for background checks.

1 July 2025 — mandatory end-of-tenancy survey in Rental Bonds Online when a bond is claimed or released.

2 March 2026 — landlords and agents must offer tenants the option to pay rent via Centrepay.

Mid-2026 (announced) — Smart Rental Bonds, allowing eligible tenants to transfer an existing bond to a new tenancy.

All references in this guide are to the Residential Tenancies Act 2010 (NSW) as amended, and to guidance issued by NSW Fair Trading, which administers tenancy law in New South Wales.

The removal of no-grounds evictions is the reform that received the most public attention, and it is the one most frequently misunderstood by property managers. The ban commenced on 19 May 2025.

What changed: previously, landlords could end a periodic (month-to-month) tenancy with a 90-day no-grounds termination notice, and could decline to renew a fixed-term tenancy without giving any reason. Both mechanisms are gone. From 19 May 2025, landlords need a valid, prescribed reason to end any tenancy — periodic or fixed-term, including at the end of the fixed term.

What did not change: landlords can still end tenancies. The reform removed the ability to terminate without a reason, not the ability to terminate. The allowable grounds include:

The property is being sold with vacant possession. The landlord must genuinely be selling — supporting evidence is required with the notice.

The landlord or a member of their family intends to move in. A re-letting exclusion applies: the property cannot be re-listed for rent for a prescribed period after using this ground.

Significant renovation or repair that cannot reasonably be carried out with the tenant in occupation. From 20 June 2025, the supporting-document requirements for this ground were strengthened — landlords must provide evidence such as development approval, contracts, or detailed plans, and a re-letting exclusion period applies.

Change of use of the property (for example, to commercial use or demolition).

Breach of the tenancy agreement by the tenant — non-payment of rent, damage, or other breaches under the Act, with notice periods depending on the breach.

Notice periods for ending a tenancy at the end of a fixed term are now 60 days for fixed terms of six months or less and 90 days for fixed terms longer than six months. For periodic tenancies, the standard notice period on the ownership-related grounds is 90 days.

Every termination notice must cite the specific ground and, for most grounds, include the prescribed supporting evidence. NSW Fair Trading can investigate misuse — if a landlord claims they are selling and the property is quietly re-let instead, both the landlord and the managing agent face penalties and compensation exposure.

At first glance, the removal of no-grounds evictions seems unrelated to condition reports. But there are two important connections.

First, terminations based on tenant breach often rely on condition report evidence. If a landlord wants to terminate a tenancy because the tenant has caused significant damage to the property, the evidence supporting that termination will typically include condition reports and photographs showing the damage, compared against the entry condition report showing the property's original state.

Routine inspection reports become more important in this context. They create a documented timeline of property condition that can support a breach-based termination. If you have inspection reports showing progressive deterioration or damage, that evidence supports the landlord's position that the tenant has breached their obligation to maintain the property in a reasonable state.

Second, terminations based on renovation or repair now require documented evidence that the work is genuinely needed — a requirement that was strengthened on 20 June 2025. A thorough condition report documenting the current state of the property supports the landlord's claim that significant renovation or repair is required.

The broader implication is that condition reports are no longer just bond documents. They are evidence documents that may be relevant to tenancy terminations, NCAT (NSW Civil and Administrative Tribunal) proceedings, and compliance investigations. Every condition report you complete should be treated as a document that may need to withstand tribunal scrutiny, because it very well might.

Three further changes commenced on 19 May 2025 that directly affect property management workflows.

Pets: a 21-day deemed-approval clock. Tenants can now apply to keep a pet using a prescribed form. The landlord must respond within 21 days — approving, approving with reasonable conditions, or refusing on one of the prescribed grounds (such as the property being unsuitable, or the landlord living at the property). If the landlord does not respond within 21 days, the application is deemed approved. Blanket "no pets" policies are no longer enforceable. For property managers, the operational risk is the deadline: an unanswered pet request sitting in an inbox becomes an approval by default. Pet-related property condition also becomes a documentation issue — entry condition reports and routine inspections should record the presence of approved pets and any pet-related wear so that fair wear and tear can be separated from pet damage at the end of the tenancy.

Fee-free rent payment. Landlords and agents must offer tenants at least one fee-free, reasonably accessible way to pay rent, such as bank transfer. Steering tenants into payment platforms that charge transaction fees, without a fee-free alternative, is no longer compliant.

Background check charges banned. Landlords and agents cannot require applicants to pay for background checks or similar pre-tenancy costs.

Each of these is small on its own, but together they require updates to your application handling, your tenancy agreement templates, and your rent collection arrangements.

From 1 July 2025, landlords and agents must complete an end-of-tenancy survey in Rental Bonds Online (RBO) whenever they claim or release a bond. The survey collects information about the tenancy — such as the reason it ended and the condition of the property — and feeds NSW Fair Trading's rental market data.

The timing depends on who initiates: if the landlord or agent submits the bond claim (or a joint claim), the survey information is due at the time of the claim. If the tenant claims the bond without the landlord's consent, the landlord has 14 days to provide the survey information. Non-compliance can attract a penalty notice.

Two important clarifications, because this change is widely misreported:

First, RBO itself is not new. It launched in November 2015, and since 30 January 2017 agents and self-managing landlords have been required to offer tenants RBO as the first option for lodging a bond. Tenants can still decline and lodge by other means — paper lodgement was not abolished by the 2025 reforms. What is new from 1 July 2025 is the mandatory survey at the end of the tenancy.

Second, the 14-day response window for bond claims is long-standing, not a 2025 invention. When one party claims the bond without the other's consent, NSW Fair Trading notifies the other party, who then has 14 days to dispute the claim by applying to NCAT (and telling Fair Trading in writing that they have done so). If they do not, the bond is paid out per the claim. This has been the mechanics of the NSW bond system for years — but it remains the single most important deadline in the process, and it is unforgiving.

There is also a documentation obligation that many agencies overlook: under section 165 of the Residential Tenancies Act 2010, a landlord or agent who claims the bond without the tenant's consent must give the tenant, within 7 days of the claim, a copy of the end-of-tenancy condition report plus any estimates, quotes, invoices, or receipts supporting the amount claimed. Failing to do so is an offence.

The NSW bond process does not change what you need in a condition report. It dictates when you need it.

If you claim against a bond without the tenant's consent, section 165 gives you 7 days to hand the tenant your exit condition report and supporting quotes or invoices. If the tenant beats you to it and claims the full bond, you have 14 days from Fair Trading's notice to dispute at NCAT. Either way, your evidence must be assembled within days of the tenant vacating, not weeks.

Here is the workflow that fits those deadlines.

Before the tenant vacates: review the entry condition report to refresh your understanding of the baseline condition. Identify any areas of concern from routine inspection reports. Have your preferred cleaning and trade contacts on standby for quick quotes.

On the day the tenant vacates: conduct the exit inspection and complete the exit condition report. Take comprehensive photographs of every room, with close-ups of any damage or cleaning deficiencies. This should happen on the day of vacancy or within 24 hours.

Within 48 hours of vacancy: compare the entry and exit condition reports. Identify all discrepancies that exceed fair wear and tear. Begin obtaining itemised quotes for repair and cleaning work, and tell your trades you need responses within three business days.

Within 5 days of vacancy: compile your evidence package. Pair entry and exit photos. Assemble quotes, the rent ledger, and any relevant correspondence. Prepare a clear summary of each claim.

Within 7 days of a bond claim: if you have claimed without the tenant's consent, deliver the section 165 package (exit condition report plus estimates, quotes, invoices, or receipts) to the tenant. Complete the mandatory end-of-tenancy survey in RBO.

Property managers who still complete condition reports on paper, or who use disjointed systems where photos, notes, and descriptions are stored separately, will struggle to meet these deadlines consistently. Digital condition report tools that generate a complete, photo-documented report at the time of inspection are essential for operating inside the NSW bond timeline.

From 2 March 2026, landlords and agents must offer tenants the option to pay rent through Centrepay, the free Services Australia bill-paying service that deducts payments from Centrelink benefits. If a tenant asks to pay by Centrepay, the landlord or agent must be registered and able to accept it. For agencies, this means completing Centrepay registration and updating rent payment disclosures in new tenancy agreements.

Looking slightly further ahead, the NSW Government has announced Smart Rental Bonds, expected to launch in mid-2026. The scheme will allow eligible renters to transfer an existing bond from one tenancy to the next through Rental Bonds Online — rather than paying a second bond up front while waiting for the first to be refunded — for a modest transfer fee. For property managers, the practical effect is that end-of-tenancy condition assessment may need to happen even faster: a clean exit report is what clears a bond for transfer. Watch NSW Fair Trading's announcements for the commencement details.

One more reform to keep on your radar: the Residential Tenancies Amendment (Protection of Personal Information) Bill 2025, introduced to Parliament in June 2025, proposes limits on the personal information that can be collected from rental applicants and a standard rental application form. As of mid-2026 this is not yet law — the details, including what a standard form would contain, are still being settled. Do not act on third-party claims that a mandatory NSW application form is already in force; check fairtrading.nsw.gov.au for the current status before changing your application process.

NSW is not reforming rental law in isolation. Every Australian state and territory has been updating its residential tenancy framework, and understanding the national context helps property managers who operate across state borders.

Queensland's bond-evidence rules commenced on 30 September 2024: property managers claiming against a bond must give the tenant supporting evidence within 14 days of making the claim or raising a dispute (bonds lodged before that date were covered once the transition period ended on 30 September 2025). QLD uses RTA-approved forms (Form 1a for entry and Form 14a for exit condition reports), and the Residential Tenancies Authority manages bond lodgement and dispute resolution.

Victoria has had rental minimum standards in place since March 2021 under the Residential Tenancies Act 1997, and its 25 November 2025 reforms extended the no-fault eviction ban and require properties to meet minimum standards before being advertised.

South Australia's major reforms under the Residential Tenancies (Miscellaneous) Amendment Act 2023 commenced primarily on 1 July 2024, including minimum housing standards obligations and changes to inspection frequency.

The ACT has had strong renter protections for several years under the Residential Tenancies Act 1997 (ACT), including restrictions on rent increases and termination grounds.

The trend across all jurisdictions is the same: tighter regulation, stronger enforcement, higher documentation standards, and greater renter protections. NSW's reforms are consistent with this national direction.

For property managers who work across multiple states, the key takeaway is that you need state-specific processes for condition reports, bond claims, and tenancy management. Your condition report tool needs to generate state-specific reports that comply with each state's forms and requirements.

Here is a practical checklist of actions NSW property managers should take now to ensure compliance with all current and upcoming reforms.

Termination grounds (in effect since 19 May 2025):

Update your termination notice templates to cite a specific, allowable ground with the required supporting evidence attached. Every notice must comply — including at the end of a fixed term.

Train your team on the grounds, the 60/90-day notice periods for end-of-fixed-term terminations, the strengthened evidence requirements for renovation terminations (from 20 June 2025), and the re-letting exclusion periods that apply to several grounds.

Review your routine inspection process to ensure it creates documentation that could support a breach-based termination if needed. Inspection reports should be detailed, photo-documented, and stored securely.

Pets (in effect since 19 May 2025):

Build a tracked workflow for pet applications with an internal deadline well inside the 21-day statutory window. An unanswered application is a deemed approval.

Record approved pets and pet-related condition observations in entry condition reports and routine inspections, so pet damage can be distinguished from fair wear and tear at exit.

Rent payment (19 May 2025 and 2 March 2026):

Confirm every tenancy has a fee-free rent payment option and that your tenancy agreement disclosures reflect it.

Complete Centrepay registration before 2 March 2026 so you can accept Centrepay deductions when a tenant requests it.

Bonds (survey mandatory since 1 July 2025):

Add the RBO end-of-tenancy survey to your bond claim/release checklist — it is due at the time of your claim.

Build your end-of-tenancy workflow around the statutory deadlines: exit inspection within 24 hours of vacancy, evidence compiled within 5 days, and the section 165 package (exit condition report plus quotes/invoices) delivered to the tenant within 7 days of any claim made without consent.

Set up reminders for the 14-day NCAT window in case a tenant claims the bond without your client's consent. Missing it means the bond is paid out as claimed.

General documentation:

Audit your condition report quality. Review the last ten entry condition reports your agency completed. Are they specific enough? Do they include sufficient photographs? Would they withstand NCAT scrutiny if a bond dispute reached the tribunal? If the answer to any of these questions is no, improve your process.

Ensure all records are stored digitally with secure backups. If you cannot produce evidence electronically within days, you cannot effectively run or defend a bond claim.

The NSW reforms have created a regulatory environment where the quality and timeliness of your condition reports directly affects your ability to manage bonds, defend terminations, and meet compliance requirements. ConditionHQ is built specifically for Australian property managers operating in this environment.

NSW-compliant condition reports: ConditionHQ generates condition reports that follow the prescribed form under the Residential Tenancies Regulation 2019. This means the format, content, and structure of each report meets NSW's regulatory expectations.

Fast, comprehensive reports for tight bond timelines: completing a thorough, photo-documented report at the time of inspection is what makes the 7-day section 165 package and the 14-day NCAT window manageable. ConditionHQ's structured room-by-room workflow (with AI-assisted descriptions on paid plans) is designed for exactly that.

Integrated photo documentation: every photo is embedded in the report alongside the relevant room and item description, with timestamps. When you assemble bond claim evidence, you have a single, organised document that clearly links condition descriptions to photographic evidence.

Entry and exit comparison: when both your entry and exit reports are created in ConditionHQ, comparing them is straightforward. Changes in condition are clearly documented, making it easy to identify and substantiate bond claims.

Cloud storage with audit trail: all reports are stored securely in the cloud with creation timestamps and access logs. This audit trail demonstrates when reports were created and that they have not been modified after the fact, which is exactly the kind of verifiable documentation that NCAT expects.

ConditionHQ offers a free tier with three reports per month for property managers who want to test the platform. The Pro plan at $59 per month and Agency plan at $149 per month provide unlimited reports for agencies managing larger portfolios.

The NSW rental reforms of 2025-2026 have changed the operating environment for property managers in ways that demand immediate action, not future planning.

No-grounds evictions are gone — everywhere. Since 19 May 2025, every termination needs a valid ground with supporting evidence, including at the end of a fixed term (60 days' notice for fixed terms of six months or less, 90 days for longer).

Pet applications run on a 21-day clock. No response means deemed approval. Track every application.

Rent payment options are regulated. A fee-free option has been required since 19 May 2025, and Centrepay must be offered from 2 March 2026.

The bond process has hard deadlines. The end-of-tenancy survey in Rental Bonds Online is mandatory since 1 July 2025. Claiming without tenant consent triggers the 7-day section 165 evidence obligation, and a disputed claim gives the other party 14 days to go to NCAT.

A standard rental application form is proposed, not law. The Protection of Personal Information Bill 2025 is still before the Parliament — check NSW Fair Trading for its status rather than acting on secondhand claims.

Documentation standards have risen across the board. Condition reports are no longer just bond documents. They are evidence documents relevant to bond claims, termination proceedings at NCAT, and compliance investigations by NSW Fair Trading.

The Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019 are the governing legislation. NSW Fair Trading (nsw.gov.au/departments-and-agencies/fair-trading) is the regulator and publishes guidance, forms, and commencement updates. Check their rental law changes page regularly.

These reforms are designed to make the rental market fairer and more transparent. Property managers who embrace the changes and build compliance into their standard operating procedures will find that the reforms strengthen their position. Thorough documentation, prompt action, and clear communication have always been hallmarks of good property management. The law has simply caught up.