By Conrad Vass · Property Management ·
Keeping up with changes to NSW tenancy laws can be challenging for both landlords and tenants. Following the reforms introduced in 2024 and 2025, the leasing landscape has shifted considerably, with new rules around lease terminations, rent increases, pets, bond transfers and property access.
Drawing on more than 25 years of experience across Sydney's inner-city market, Conrad Vass and the team at Space Property Agency have put together this practical guide to clarify some of the most common misconceptions surrounding residential leasing in NSW in 2026.
Myth 1: Landlords Can Evict Tenants Without a Reason
One of the most significant changes to NSW tenancy law has been the removal of no-grounds terminations.
For many years, tenants could receive a termination notice at the end of a lease without any explanation. That is no longer the case. In 2026, landlords must have a valid legal reason to end a tenancy and must provide supporting documentation when issuing a termination notice.
Common grounds for termination include:
- The owner or an immediate family member moving into the property.
- Major renovations that require the property to be vacant.
- The sale of the property where vacant possession is required.
- A serious breach of the tenancy agreement by the tenant.
Providing incorrect information or failing to supply the required documentation can expose landlords to penalties from NSW Fair Trading. As a result, lease renewal discussions are best addressed well before the expiry date so all parties have sufficient time to consider their options and comply with notice requirements.
Myth 2: Rent Can Be Increased Whenever the Market Improves
With vacancy rates remaining tight across many parts of Sydney, some landlords assume rent can be adjusted whenever local market conditions strengthen. The legislation is clear. Rent can only be increased once every 12 months, regardless of whether the tenancy is fixed-term or periodic.
For tenants, this provides greater certainty around housing costs. For landlords, it highlights the importance of setting an appropriate rental price at the commencement of the tenancy rather than relying on multiple increases throughout the year.
According to Conrad Vass, strong leasing outcomes are generally achieved through accurate pricing, quality marketing and careful tenant selection from the outset.
Myth 3: A No Pets Clause Automatically Prevents Pets
Many tenancy agreements still contain clauses stating that pets are not permitted. However, the position under NSW tenancy laws has changed significantly.
Tenants now have expanded rights to request permission to keep a pet, and landlords cannot refuse that request without a valid reason. While certain exceptions may apply — such as properties that are genuinely unsuitable for particular animals or situations involving specific strata restrictions — blanket refusals are becoming increasingly difficult to justify.
Across many inner-city suburbs, including Surry Hills, pet friendly properties continue to attract strong interest from prospective tenants. In many cases, landlords find that accommodating pets can broaden the pool of applicants and encourage longer-term occupancy.
Myth 4: Moving Home Means Paying Two Bonds at Once
For years, tenants moving between rental properties often faced the challenge of funding a new bond before receiving the refund of their existing one. The introduction of the Smart Rental Bonds system is designed to reduce this financial burden.
Under the new framework, eligible tenants can transfer an existing bond directly to a new tenancy, reducing the need to fund two bonds simultaneously while waiting for a refund to be processed.
The change is expected to make moving between rental properties more manageable, particularly in high-demand areas where upfront moving costs can already be substantial.
For property managers and landlords, the system also encourages greater digital integration and more efficient bond administration.
Myth 5: Inspection Notices Are Only a Courtesy
Property access remains a common source of misunderstanding between landlords and tenants.
NSW legislation sets out clear notice requirements, and landlords cannot simply attend a property without following the correct process.
Current requirements include:
Routine inspections
- Minimum seven days' written notice.
- Maximum of four routine inspections within a 12-month period.
Repairs
- Immediate access may be permitted for urgent repairs.
- At least two days' notice is generally required for non-urgent repairs.
Property viewings
- At least 48 hours' notice is required for inspections associated with a sale or new tenancy.
- The tenant must first receive the relevant notice regarding the proposed sale or leasing campaign.
In densely populated suburbs such as Potts Point and Elizabeth Bay, where privacy is highly valued, complying with these requirements helps maintain positive landlord-tenant relationships and reduces the risk of disputes.
Understanding the Rules Matters
The Residential Tenancies Act is designed to balance the interests of both landlords and tenants, but understanding how the legislation applies in practice often requires more than simply reading the legislation itself.
Whether managing an investment property in Darlinghurst or renting for the first time in Redfern, staying informed about current requirements can help avoid unnecessary disputes, delays and compliance issues.
According to Conrad Vass, successful property management is built on proactive communication, careful risk management and a strong understanding of regulatory obligations.
For property owners and renters navigating the NSW leasing market in 2026, obtaining professional advice early can often prevent costly mistakes later.
Local Market Considerations
Surry Hills (2010)
Surry Hills continues to evolve, with warehouse conversions, boutique developments and premium apartment projects contributing to a diverse rental market. Understanding building-specific strata rules and leasing requirements remains important for both owners and tenants.
Chippendale (2008)
Its proximity to universities, major employment centres and the CBD continues to drive strong rental demand. The introduction of bond transfer reforms is particularly relevant in a suburb where tenant turnover can be comparatively higher.
Redfern (2016)
Redfern remains one of Sydney's most closely watched inner-city markets. Ongoing renewal and redevelopment continue to attract renters and investors, making professional property management and compliance increasingly important.
Final Thoughts
NSW tenancy laws have undergone substantial change over recent years, and many long-standing assumptions about leasing no longer reflect the current legal position. Understanding the rules around lease terminations, rent increases, pets, bond transfers and property access is essential for both landlords and tenants. Staying informed and seeking professional guidance when needed can help ensure a smoother leasing experience and reduce the risk of costly misunderstandings.
For tailored advice on your property's value or how best to position it for sale in the current market, contact Conrad Vass at Space Property Agency.
Suite 13, Level 5, 35 Buckingham St, Surry Hills NSW 2010
0418 225 089
Follow Conrad on X: @VassConrad97853