NSW residential tenancy law has changed substantially in 2024, 2025, and 2026. For Camden landlords and property investors, the new rules cap rent increases, require a reason to end a tenancy, restructure pet consent, mandate Centrepay payment, and introduce a portable bond scheme later this year. This guide explains what every Camden landlord needs to understand to manage an investment property legally and successfully under the new framework.
Quick Overview of What You Need to Know
For time-pressed readers: This guide covers the NSW reforms commencing in 2024, 2025, and 2026 that affect rent setting, lease termination, pets, payment methods, bonds, and ongoing record-keeping obligations for landlords.
Key facts at a glance:
- Rent increases are capped at once per 12 months, in force since 31 October 2024.
- No-grounds evictions have been abolished. Landlords need a valid reason to end a tenancy.
- Pet keeping rules changed on 19 May 2025 with a structured consent process.
- Notice periods are 60 days (leases under 6 months) or 90 days (leases over 6 months).
- Centrepay must be offered as a payment option from 2 March 2026.
- Smart Rental Bonds (portable bonds) commence mid-2026.
Why This Matters in Camden
Camden and the wider Macarthur region remain among Sydney’s fastest-growing residential markets, with Western Sydney International Airport, the M12 motorway, and the Aerotropolis driving strong long-term rental demand. For investors, that growth creates real opportunity. It also concentrates regulatory attention. NSW Fair Trading now collects more data on why tenancies end and scrutinises landlord conduct more closely than at any point in the last decade.
A Camden landlord operating an investment property in 2026 needs to know the new rules in detail. The reforms are not optional, and several carry penalties for non-compliance.
Rent Increase Caps
The 12-month cap on rent increases NSW Fair Trading, 2026 means that for most residential tenancies in NSW:
- Rent cannot be increased within the first 12 months of a tenancy
- Rent cannot be increased more than once in any 12-month period
- The 12 months runs from the start of the tenancy or the last increase
The cap applies regardless of whether the lease is fixed-term or periodic. The amount of any single increase is not capped, but the frequency is.
For Camden investors managing multiple properties, the practical effect is that you need to plan rent reviews on an annual cycle and apply increases consistently rather than opportunistically.
No-Grounds Eviction Reform
The most significant reform for landlords is the end of no-grounds evictions Tenants’ Union of NSW, 2025. From 19 May 2025, landlords must have a prescribed reason to end a residential tenancy. This applies to both periodic agreements and the end of fixed-term agreements.
Permissible reasons include:
- Sale of the property (with conditions)
- The landlord or close family moving in
- Significant renovations or demolition
- Breach by the tenant
- The property no longer being used as a residential rental
Each reason carries its own evidence requirements. A landlord ending a tenancy on the basis of sale, for example, must provide evidence the property is being sold and cannot re-let to a different tenant for a prescribed period after the eviction.
Notice periods have been extended:
- At least 60 days notice for fixed-term leases of 6 months or less
- At least 90 days notice for fixed-term leases of more than 6 months
The notice must specify the reason and reference the supporting evidence. A notice that does not meet these requirements is invalid.
Pet Keeping Provisions
From 19 May 2025, the pet consent process NSW Fair Trading, 2026 is structured around clear grounds on which a landlord can refuse permission. A blanket “no pets” position is no longer enforceable.
Landlords can refuse a pet request only on prescribed grounds, including:
- The property is unsuitable for the pet (size, type, fencing)
- Insurance, body corporate, or strata rules prohibit the pet
- The pet would likely cause damage exceeding the rental bond
- Other reasonable grounds specified in the regulations
Landlords can also impose reasonable conditions on pet consent, such as professional carpet cleaning at the end of tenancy or restrictions on outdoor areas.
If a tenant requests a pet and the landlord does not respond within the statutory period, consent is taken to have been given. Camden landlords should ensure their property managers track pet requests carefully.
Centrepay Payment Method
From 2 March 2026, landlords and agents are required to offer payment by Centrepay where a tenant chooses it NSW Fair Trading, 2026. Centrepay is the Commonwealth Government’s free direct deduction service that takes rent from a tenant’s Centrelink payment before it reaches the tenant’s account.
For landlords this generally improves rent reliability for tenants who receive Centrelink income. It does not change the rental amount or the agreement terms. It simply adds Centrepay as a method the tenant can choose to use.
If you manage your own properties without an agent, you will need to register with Centrepay as a service provider in order to comply.
Smart Rental Bonds (Portable Bonds)
The NSW Government’s portable bond scheme, Smart Rental Bonds, is scheduled to commence in mid-2026 Tenants’ Union of NSW, 2025. The scheme allows tenants to transfer their bond directly from one tenancy to the next without first reclaiming and re-paying.
For landlords, the scheme changes some of the mechanics of bond holding but does not change the bond requirements themselves. Detailed regulations are still being finalised. Watch for NSW Fair Trading updates in the second half of 2026.
Tenancy End Data and Compliance Surveys
From 1 July 2025, NSW Fair Trading has been collecting information about why tenancies end through the Rental Bonds Online system Tenants’ Union of NSW, 2025. When a landlord ends a tenancy, they must complete a short survey within 14 days of the initial bond claim.
This data feeds into NSW Fair Trading’s compliance and enforcement work. A pattern of inconsistent reasons across multiple properties owned by the same landlord can attract attention. Camden investors should ensure their reasons for ending tenancies are documented and consistent.
What This Means for Your Investment Strategy
The cumulative effect of the reforms is to shift the rental relationship toward more stable, longer-term tenancies. For Camden investors this has real practical consequences:
- Tenant retention matters more. With no-grounds evictions gone and longer notice periods, churning tenants to reset terms is no longer viable. The right tenant at the right rent for the long term is the model that fits the new framework.
- Property maintenance is non-negotiable. Tenants now have stronger protections against retaliatory eviction. Maintenance and repair requests should be addressed promptly.
- Pet-friendly properties have a market advantage. With the new pet provisions, a property that explicitly welcomes pets attracts a larger tenant pool.
- Documentation is everything. Every rent increase, every pet decision, every notice to end tenancy must be documented and supported by evidence.
For investors planning new acquisitions in the Camden growth corridor, the legal landscape favours long-term hold strategies and properties that are easy to maintain and tenant.
Frequently Asked Questions
Can I still increase the rent significantly at lease renewal?
You can increase the rent at lease renewal, but only if 12 months has passed since the start of the tenancy or the last increase. The amount of the increase is not capped by the new rules, but disproportionate increases may be challenged at NCAT as excessive.
What if my tenant asks for a pet I genuinely do not want at the property?
You can refuse only on prescribed grounds. “I do not want pets at the property” is not a prescribed ground. If the property is genuinely unsuitable for the pet, if strata or insurance prohibits it, or if there is another regulated ground, refusal is lawful. Document the basis of the refusal carefully.
What counts as a valid reason to end a tenancy?
The prescribed reasons include sale of the property, the landlord or family moving in, significant renovations, demolition, the property being taken out of the rental market, and tenant breach. Each carries evidence requirements. Get advice before issuing a termination notice, especially under the new framework.
Do these reforms apply to commercial leases?
No. The Residential Tenancies Act 2010 governs residential leases only. Commercial leases are governed by separate legislation and these residential reforms do not apply.
What happens if I issue a non-compliant termination notice?
The notice is invalid. The tenant is not required to leave, and you may face penalties through NCAT or NSW Fair Trading. Getting termination right under the new rules is the area where Camden landlords most commonly need legal advice.
How Family Focus Legal Can Help
We work with Camden property investors across the Macarthur region on the full life cycle of residential investment: acquisition, lease drafting, tenancy management, dispute resolution, and disposal. The 2024 to 2026 reforms are the most significant change to NSW tenancy law in over a decade, and getting the new rules right matters for every Camden landlord.
If you would like a confidential discussion about your investment property and the reforms, contact our Camden office to arrange an appointment. We are also available for portfolio reviews where you would like a structured look at your current arrangements against the new framework.
Disclaimer: This article provides general information about NSW residential tenancy law as at 21 May 2026. It does not constitute legal advice. Specific tenancy decisions should be made with reference to your individual circumstances and current regulations. Contact Family Focus Legal or another suitably qualified solicitor for advice on your situation.
