NSW rental law changes 2026 have introduced important updates for landlords and tenants across the state, with further changes commencing in September 2026.
For landlords in Mosman, Cremorne, Neutral Bay, North Sydney and across the Lower North Shore, it is important to understand the rules before increasing rent, ending a tenancy, dealing with a pet request or preparing a property for a new tenant.
At Axios Real Estate, we deal with these issues every day. Here are some of the main points landlords should be aware of.
NSW Rental Law Changes 2026: Rent Increases
Rent increases are now limited to once every 12 months, applying to both fixed-term and periodic residential tenancies.
This means landlords need to think carefully about the timing and amount of a rent review rather than simply increasing the rent whenever a lease is renewed.
On the Lower North Shore, the right rent is not simply the highest figure advertised online. We look at comparable properties, parking, condition, outlook, size, level, renovations and current tenant demand before recommending a figure.
Landlords Need a Valid Reason to End Most Tenancies
The old system of simply issuing a “no grounds” termination notice has changed.
Since May 2025, landlords generally need to provide a recognised reason for ending a tenancy, and some reasons require supporting documentation. These rules apply to both fixed-term and periodic agreements.
This makes planning ahead particularly important if an owner intends to move back into the property, sell it, carry out significant renovations or change the way the property is being used.
Pet Requests Need to Be Dealt With Properly
Tenants now have stronger rights when requesting permission to keep a pet.
A landlord cannot simply refuse every pet application as a matter of policy. Any refusal needs to fall within the permitted grounds under the legislation.
For landlords, the sensible approach is to look at the individual property, the type of pet, strata rules where applicable and the circumstances of the tenancy.
NSW Rental Law Changes 2026: Smart Rental Bonds
NSW has also introduced Smart Rental Bonds, allowing eligible tenants to transfer an existing rental bond to a new property rather than having to fund an entirely new bond while waiting for the previous one to be refunded.
The statewide rollout commenced in September 2026.
For landlords and agents, it is another change to the way new tenancies are processed and bonds are handled.
For Mosman landlords, understanding NSW rental law changes 2026 can help avoid mistakes with notices, pets, rent reviews and tenancy renewals
Further Tenancy Protections Started on 21 September 2026
New protections relating to tenants affected by domestic violence commenced on 21 September 2026.
Among other changes, the rules deal with termination of tenancies, allocation of rental bonds, notification of co-tenants, property damage and privacy surrounding advertising photographs.
Property managers need to be particularly careful with these matters because there are specific legal and privacy requirements.
Good Property Management Is Becoming More Important
The legislation is becoming more detailed, but the basics of good property management have not changed.
A landlord still needs the property correctly priced, a good tenant properly selected, regular inspections, maintenance dealt with quickly, accurate records and someone keeping track of the legislation.
At Axios Real Estate, Mike and Kathy manage properties personally across Mosman and the Lower North Shore. Owners deal directly with us rather than being passed between junior property managers or departments.
If you own an investment property in Mosman, Cremorne, Neutral Bay, North Sydney or the surrounding Lower North Shore and would like an honest rental appraisal or advice about your current tenancy, contact Axios Real Estate.
For Lower North Shore landlords, keeping up with these changes is important. Good records, correct notices and careful tenancy management can help avoid unnecessary disputes and delays.
NSW rental law changes 2026 also make accurate records and professional property management more important than eve