By Conrad Vass · Property Management ·
Quick answer
In 2026, "no-grounds" evictions are banned in NSW. Landlords must provide a valid legal reason and strict supporting evidence (quotes, permits) to terminate a lease. Rent increases are capped at once per year, and blanket "no pet" policies are largely unenforceable.
Key takeaways
- "No-grounds" notices with 90 days' notice are no longer valid.
- Terminations for renovations now require proof the work necessitates vacancy.
- Evidence (quotes, permits) must be supplied at the time the notice is served.
- Rent increases are strictly limited to once every 12 months.
- Landlords must offer at least one fee-free rent payment method.
- Refusing a pet request now requires a very high threshold of "reasonableness."
- Tenants have improved rights to vacate early if served a termination notice.
NSW No-Grounds Evictions & Rental Reforms: What Sydney Landlords Need to Know in 2026
The landscape of the Sydney rental market has undergone its most significant transformation. In 2026, compliance is no longer a recommendation; it is a prerequisite for protecting your yield and asset.
The End of "No-Grounds" Terminations
Historical rights to terminate without a reason are gone. Valid grounds now include:
Sale: Signed contract requiring vacant possession.
Renovations: Must prove work is extensive enough to require vacancy.
Owner Re-occupation: Owner or family moving in for at least 12 months.
Strict Documentation
Landlords must supply detailed supporting evidence (quotes, permits) when the notice is served. Tenants can challenge "sham" notices at NCAT.
Rent and Pets
Rent increases are capped at once per year. Blanket "no pet" policies have ended; landlords cannot unreasonably refuse a request, and no response within 21 days means automatic approval. "DIY" landlording is now a high-risk endeavor.
Frequently asked questions
What are valid grounds for termination in 2026?
Valid grounds include sale of the property, significant renovations, owner re-occupation, or change of use.
How often can I increase the rent in NSW?
Rent increases are now strictly limited to once every 12 months for both fixed and periodic leases.