This article is general information only and does not constitute financial or tax advice. Consult a qualified tax professional for advice specific to your situation.
Key takeaways
- The maximum rental bond in NSW is four weeks' rent (no cap if weekly rent exceeds $700), and it must be lodged with NSW Fair Trading within 10 working days.
- From July 2025, NSW landlords can no longer end a periodic tenancy without a specific reason permitted by the Act, such as selling or moving in.
- Routine inspections require seven days' written notice and are limited to four per year; turning up unannounced is a breach of the Act.
- Tenants can arrange urgent repairs themselves and recover up to $1,000 from you if you cannot be reached in time.
- NSW landlords cannot unreasonably refuse a tenant's request to keep a pet, and a blanket "no pets" policy is no longer enforceable.
Owning a rental property in New South Wales comes with a real set of legal obligations. The rules around bonds, repairs, rent increases, and entry are not optional, and the penalties for getting them wrong can be significant. This guide covers what you need to know as a self-managing landlord in NSW.
This is general information only. For advice specific to your situation, speak with a solicitor or contact NSW Fair Trading.
The Residential Tenancies Act 2010
Residential tenancies in NSW are governed by the Residential Tenancies Act 2010 (RTA). It sets out the rights and obligations of both landlords and tenants and applies to the vast majority of residential rental agreements in the state.
The RTA was substantially amended in 2020, introducing reforms that tightened landlord obligations around disclosure, repairs, and ending tenancies. If you have been managing a property for several years and have not revisited the rules since, the 2020 changes are worth understanding. Some things that were once common practice are no longer permitted.
NSW Fair Trading administers the Act and is the first port of call for information, forms, and complaint handling. The NSW Civil and Administrative Tribunal (NCAT) resolves disputes between landlords and tenants.
Rental Bonds: Lodgement and Limits
When a new tenancy starts, you can collect a rental bond as a security deposit against damage or unpaid rent. In NSW, the maximum bond is four weeks' rent for most properties. If the weekly rent is above $700, there is no legislated cap, but it remains subject to reasonableness.
You must lodge the bond with NSW Fair Trading, not hold it in your own account. This must be done within ten working days of receiving the payment. Fair Trading holds the bond in trust for the duration of the tenancy.
At the end of the tenancy, the bond is released through Fair Trading's online portal. If there is no dispute, both parties agree to the release and the money is returned to the tenant, minus any amounts legitimately claimed for damage or arrears. Where there is a disagreement, either party can apply to NCAT to have the bond determined. See our guide to handling a rental bond dispute for a step-by-step overview of that process.
Smoke Alarms and Safety Obligations
NSW landlords must ensure smoke alarm compliance by having working smoke alarms installed in the property at the start of each tenancy and maintained throughout it. The current requirements under the Environmental Planning and Assessment Act 1979 specify interconnected photoelectric smoke alarms for most new builds, with older properties phased in progressively.
Your obligations in practice: smoke alarms must be installed on every level of the property, in each bedroom, and in every hallway leading to a bedroom. Battery-operated alarms must have fresh batteries. You cannot simply hand the property over and assume the tenant will deal with it.
Beyond smoke alarms, you must ensure the property is reasonably safe and fit for habitation. This includes functioning door locks and latches, no major structural defects, adequate weatherproofing, and working plumbing and electrical systems.
Minimum Standards
Since March 2020, NSW rental properties have been required to meet a set of minimum housing standards before a tenancy can commence. These cover:
- Structurally sound and weatherproof premises
- Adequate natural or artificial lighting in each room
- Functioning and adequate plumbing and hot water
- A functioning flush toilet connected to the sewage system
- A laundry facility or access to one
- Functioning cooling or ventilation in the main living area
A property that does not meet these standards cannot lawfully be rented out. If a tenant believes the property falls short, they can apply to NCAT for an order requiring the landlord to remedy it.
Entry: How Much Notice You Must Give
You cannot enter your rental property without proper notice. The rules under the RTA are clear:
For a routine inspection, you must give at least seven days' written notice. You can inspect no more than four times in any 12-month period. For a thorough inspection walkthrough, see our end-of-lease inspection checklist. For carrying out repairs or maintenance, at least two days' written notice is required. For showing the property to prospective tenants near the end of a tenancy, 24 hours' written notice applies.
The exception is a genuine emergency: a burst pipe, fire, or situation where someone's safety is at immediate risk. In those cases you can enter without notice, but only to address the emergency.
Turning up unannounced, even to check on a repair or collect something you left behind, is a breach of the Act and can expose you to a penalty from NCAT.
Repairs: Urgent vs Non-Urgent
NSW tenancy law distinguishes between urgent and non-urgent repairs, and your obligations differ between them.
Urgent repairs include failures that affect the health or safety of occupants: a burst water service, blocked or broken toilet, serious roof leak, dangerous electrical fault, heating failure in cold weather, and several other categories listed in the Act. You must respond to urgent repairs immediately, and if you cannot be reached, tenants have the right to arrange urgent repairs themselves and recover costs from you up to $1,000.
Non-urgent repairs (a dripping tap, a stuck window, a broken screen door) must still be dealt with within a reasonable timeframe. What is "reasonable" depends on the nature of the problem, but leaving a non-urgent repair unaddressed for months can become a breach of your obligations.
When repairs are carried out, keep the invoices and receipts. Most repair costs on a rental property are tax-deductible in the year they are incurred. For guidance on how the ATO treats different types of maintenance and repair work, see our article on claiming maintenance and repairs on an investment property. Always check with your accountant for advice specific to your situation.
Rent Increases: Once per 12 Months
In NSW, you can only increase the rent once in any 12-month period. This applies regardless of whether the tenancy is on a fixed-term or periodic lease. The 12-month window is measured from the date the last increase took effect, or from the start of the tenancy if there has been no prior increase.
You must give at least 60 days' written notice of a rent increase. The notice must state the new rent amount and the date it takes effect. There is no prescribed form, but the notice must be in writing and clearly set out those two things.
NSW does not currently cap rent increases to a specific percentage (the amount is at your discretion) but a tenant can apply to NCAT if they believe the increase is excessive relative to market rents.
Calculate Your Rent Increase
Enter your current weekly rent and proposed new amount below to see the annual impact and check the NSW notice requirements.
Enter your current rent and proposed increase to see the breakdown.
If you are unsure what rent to charge, the break-even rent calculator can help you work out the minimum weekly rent needed to cover your holding costs.
No-Grounds Terminations: What Changed
One of the most significant reforms in NSW tenancy law in recent years is the restriction on no-grounds terminations. From July 2025, landlords can no longer end a periodic tenancy without grounds. You must have a specific reason permitted by the Act, such as wanting to sell the property, move in yourself, carry out major renovations requiring vacant possession, or the property no longer being fit for habitation.
For fixed-term leases, you can still choose not to renew at the end of the term, but the notice requirements are substantial. For terms of more than two years, you must give at least 90 days' notice if you do not intend to offer a further agreement.
The practical effect is that if your tenant has been reliable and you want them gone simply because you feel like a change, you no longer have a straightforward legal path to achieve that in NSW. Plan ahead if your circumstances are likely to change.
Pets: You Cannot Unreasonably Refuse
NSW law now prevents landlords from unreasonably refusing a tenant's request to keep a pet. Tenants must make the request in writing, and you must respond within 21 days. If you do not respond within that window, consent is taken to have been given.
You can refuse on reasonable grounds: for example, if the strata scheme prohibits animals, if the property genuinely cannot accommodate the type of animal requested, or if the size of the pet is unsuitable for the property. But a blanket "no pets" policy is no longer enforceable.
You can impose conditions on pet consent, such as requiring the tenant to have the carpets professionally cleaned at the end of the tenancy. What you cannot do is charge a higher bond simply because a pet is present; the four-week cap still applies.
Staying on Top of It All
NSW tenancy law is detailed, and the reforms of recent years have added more to keep track of. The fundamentals (lodge the bond promptly, give proper notice for entry, fix urgent repairs fast, follow the rules on rent increases) are not difficult once they become habit. The problems tend to arise when landlords operate on assumptions that were correct five years ago but are no longer current law.
If you are managing one or a handful of properties alongside a full-time job, propkt helps you record the details that matter: bond lodgement amounts, lease start and end dates, repair costs, and rent payment tracking history. When something comes up (a rent review, a repair request, a tenancy ending) you have the paperwork already organised rather than scattered across your inbox. You can also use the land tax calculator to check your NSW land tax liability, which is one more annual cost worth planning for.
NSW rental laws require careful record-keeping: entry notices, repair timelines, bond lodgement, and smoke alarm compliance. propkt tracks these dates, stores documents, and sends automated reminders so nothing slips through. Try propkt free.