What Can a Landlord Actually Do Under the New Laws?
Until recently, when a fixed-term lease was coming to an end, landlords and agents could simply choose not to renew and bring the agreement to a close. That is no longer the case in NSW.
Since 19 May 2025, landlords can no longer terminate a tenancy at the end of a fixed-term agreement “for no reason”. This legislative change has significantly limited the options available in situations where tenants delay or refuse to sign a new lease.
Recently, we had a case where a tenant’s lease expired before we were able to secure signatures on a new agreement. Naturally, the landlord was concerned, from their point of view, it seemed like a failure to act early enough. In reality, even if the discussions had taken place sooner, we legally could not have ended the tenancy simply because the tenants hadn’t re-signed in time.
Why Not?
Because the law now requires a valid prescribed ground to terminate, not just the expiry of the lease.
NSW Fair Trading is clear: without one of the approved grounds, the tenancy rolls into a periodic agreement by default. This ensures tenants are not forced out solely due to paperwork delays or reluctance to re-sign.
But What About Landlord Risk — Insurance, Security, Certainty?
This is the number one question we are hearing and we are not alone. When we contacted the Real Estate Institute of NSW, they confirmed they have been inundated with calls from agents and landlords in the same position. Even they have escalated the concern to NSW Fair Trading.
The Fair Trading response so far has been blunt: if an insurer no longer covers periodic tenancies, the landlord will need to look for a different insurer. It is highly frustrating, but it is the current position.
Can We Pressure or Incentivise a Tenant to Sign?
No, and this is important.
We specifically asked whether we could advise the tenant that the rent would be increased significantly if they did not renew, and reduced if they did. The answer was a firm no. Anything that could be viewed as coercion is a breach of legislation.
So When Can a Tenancy Now Be Legally Ended?
A tenancy may only be terminated on one of the legislated grounds below:
| Ground for Ending the Tenancy | Fixed Term ≤ 6 months | Fixed Term > 6 months | Periodic Agreement |
|---|---|---|---|
| Proposed sale of property | 60 days | 90 days | 90 days |
| Significant renovations/repairs | 60 days | 90 days | 90 days |
| Change of use | 60 days | 90 days | 90 days |
| Landlord or family moving in | 60 days | 90 days | 90 days |
| Student/affordable/transition/key worker housing changes | 60–90 days | 60–90 days | 60–90 days |
| Actual sale of property | 30 days | 30 days | 30 days |
| Breach of agreement | 14 days* | 14 days* | 14 days* |
| Non-payment | 14 days* | 14 days* | 14 days* |
| Property unusable | Immediate* | Immediate* | Immediate* |
In Our Case — A Sensible Outcome
While drafting our explanation to the landlord, the tenants returned contact and signed a 6-month lease by close of business. A good result, but it reinforces the broader point:
Even if they had refused, we still could not have ended the tenancy without one of the legislated reasons.
Where to From Here for Landlords?
- Expect more tenancies to roll periodic and plan for that in risk and cash-flow thinking.
- Review landlord insurance to ensure cover applies to periodic agreements.
- Reach out early with concerns, not because it allows us to end the tenancy, but because it allows planning around notice periods and strategy.
- Understand that agents must now act within far stricter statutory limits, not based on preference, timing, or history with a tenant.
*Court action may still be required depending on the circumstance.