Rent changes are a natural part of managing a property – whether it’s adjusting to market conditions, negotiating a new lease, upgrading the home, or preparing for a new tenancy.
But with this year’s changes to NSW legislation, the process now calls for greater transparency and careful timing – making it more important than ever for landlords to get it right.
So what has changed?
May 2025 marked a major turning point for NSW rental laws: no-grounds evictions were removed, notice periods were extended to 60 – 90 days (depending on the type of lease), and limits were introduced on how frequently rent can be increased – all to ensure greater fairness and stability for tenants.
Notice periods
Perhaps the most significant change is the increased notice landlords must now provide, which is no longer a one-size-fits-all approach – with new rules spelling out exactly what’s required, and when. Here’s what you need to know:
For fixed-term agreements
- 60 days’ notice is required to end a lease at the end of a fixed term of 6 months or less.
- 90 days’ notice is required to end a lease at the end of a fixed term of more than 6 months.
For periodic agreements
- 90 days’ notice is required to end a tenancy without a specific reason, such as to sell, renovate, or move in.
For more details on notice periods, please see NSW Government minimum notice periods.
Ending a tenancy
As no-grounds evictions are no longer permitted under the new rules, these are now the only valid reasons can end a tenancy in NSW:
- You or a family member are moving in
- You intend to renovate or repair the property and it wouldn’t be reasonably possible for the tenant to remain during the work
- You intend to sell the property
- The fixed term is ending, and the correct notice period (60 or 90 days) is given
- The tenant is in breach of the agreement (e.g. unpaid rent, property damage), with appropriate notice
- The property is no longer legally usable as a residence (e.g. zoning changes or major safety issues)
For more details on ending a tenancy, please see NSW Government grounds to end a tenancy.
Increasing the rent
Before considering a rental increase, it’s vital to know the current market conditions, as well as your legal requirements.
In line with updated legislation, rent can now only be increased once every 12 months for ongoing agreements (even if the lease is renewed), and landlords must provide at least 60 days’ written notice to do this.
It’s also wise to ensure that the increase is reasonable and reflective of the current market, as excessive or unjustifiable hikes could land you in tribunal dispute, strain your relationship with your tenant, or result in an undesirable vacancy.
Before making any moves on your rental property, always consult your property manager first – they can provide valuable market insights, help to ensure compliance with legal requirements, and guide you on how to communicate changes effectively.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
