How Sydney Landlords Are Adapting to the Rental Reforms
2025 was a milestone year for anyone who owns a rental property in Sydney. The NSW rental reforms were some of the most significant changes we have seen in years, and the adjustment period has been real. Landlords are not just learning new rules. They are learning a new rhythm. A new way of making decisions. A new level of clarity and documentation.
I have been walking through these shifts with a lot of owners, and the conversations have all had the same tone. Not fear. Not frustration. Just a genuine desire to understand how to work with the new framework in a fair and compliant way while still protecting the value of their investment.
A quick recap of what has actually changed
If the reforms have felt overwhelming, let me simplify it.
The biggest headline is the end of no grounds terminations. Landlords now need a valid reason to end a tenancy, and that reason has to sit within the approved grounds. It is not enough to simply want the property back. The reasoning must match reality, and supporting documentation is now required for several grounds including sale, significant renovations, demolition and the landlord or their family moving in.
As NSW Fair Trading puts it: “The changes to rental laws progress the NSW Government’s election commitments to make renting in NSW fairer and improve protections for tenants”. They require landlords to provide a reason to end a lease, ending no grounds terminations.
Another big shift is the re letting restriction. After ending a tenancy under certain grounds, landlords cannot start a new lease for a set period unless Fair Trading approves it. This ranges from four weeks to twelve months depending on the reason. Non genuine reasons or misleading documentation now carry heavy penalties.
It sounds strict, but the intention is clarity. And once you understand it, it becomes easier to navigate.
How landlords are adapting
What I am seeing most often is a shift in mindset.
Landlords are planning earlier. They are taking more care with documentation. They are asking better questions about which ground actually applies to their situation. They are thinking ahead because under the new framework, the reason you choose matters long after the tenant has moved out.
Honestly, it has made everyone a little more thoughtful, which is not a bad thing.
The biggest adjustment: the re letting restriction
This has caused the most confusion, so here is the simple version.
If you end a tenancy because you are selling, renovating, moving in or withdrawing the property from the rental market, you cannot immediately re let it. Each ground has a fixed restriction period. If your circumstances change and you genuinely need to re let sooner, you must apply to Fair Trading for approval.
This is where real life gets messy, and where the reforms meet reality.
Scenario 1: Plans changed after issuing a notice
I had a landlord who ended a tenancy to move back in. All paperwork was done correctly. But just before the tenant vacated, the landlord’s job situation changed and they no longer needed to move.
Under the old rules, they could have simply re let the property. Under the new reforms, they could not. We spoke with Fair Trading, provided evidence of the change of circumstances and received approval to remove the restriction. The system is flexible, but only if you communicate early.
Scenario 2: Termination for sale, then a death in the family
Another owner issued a notice because the property was to be sold with vacant possession. Tragically, they passed away shortly after. The property entered probate and could not legally be sold as planned.
The original reason was no longer true. We contacted Fair Trading, explained the situation, and they approved an adjustment to the re letting restriction. Again, the key was transparency.
Fair Trading is not trying to punish landlords. The framework simply requires accuracy.
What smart investors are doing now
- Planning lease endings far in advance
- Choosing the correct ground from the start
- Keeping communication open with their property manager
- Reaching out early if circumstances shift
- Leaning on agencies who understand the documentation and timelines
How I support you through this
You do not need to deal with the NSW rental reforms alone. With the right guidance, the process is clear, ethical and manageable. My job is to protect your investment while ensuring tenants are treated fairly and respectfully.
If you want help understanding which termination grounds apply to your situation or you would like a quick review of your leasing strategy under the new rules, I am here.
Reach out any time for a simple, supportive chat about your property.