No More “No Grounds” Evictions in NSW: What Self-Managing Landlords Need to Know

From 19 May 2025, NSW rental laws have changed significantly.

One of the biggest changes is that “no grounds” evictions are no longer allowed. (Tenants’ Union of NSW)

This means landlords can no longer end a tenancy without providing a valid legal reason.

For self-managing landlords, this change is critical because getting it wrong can lead to invalid notices, delays, or legal disputes.


What Has Changed?

Previously, landlords could end a tenancy with notice, even without a reason.

Now

• You must provide a valid legal reason to terminate a lease (NSW Government)
• This applies to both fixed-term and periodic agreements (Tenants’ Union of NSW)
• You may need to provide supporting evidence to prove the reason is genuine (Tenants’ Union of NSW)

In simple terms
You can no longer “just end the lease” you must justify it.


What Are Valid Reasons to End a Tenancy?

Under the new laws, acceptable reasons include

• Selling the property with vacant possession (Bondinator)
• Landlord or family moving into the property (Bondinator)
• Major renovations or repairs requiring vacancy (Bondinator)
• Change of use, for example no longer renting the property (Bondinator)
• Tenant breach such as rent arrears or damage (Bondinator)

Important
These reasons must be genuine and supported by evidence.


What You Must Do as a Self-Managing Landlord

1. Issue a Valid Termination Notice

Your notice must

• Be in writing and signed
• Include the property address
• State the specific legal reason
• Include the correct notice period
• Attach required information and evidence

If anything is incorrect, the notice may be invalid. (Tenants’ Union of NSW)


2. Provide Evidence

Depending on your reason, you may need to show

• Contract of sale if selling
• Building plans or quotes for renovations
• Proof of intention to move in

Providing false or misleading information can lead to penalties. (Tenants’ Union of NSW)


3. Follow Notice Periods

Notice periods have generally increased, for example

• Around 60 to 90 days depending on lease type (Ray White Double Bay)

You must calculate this correctly — otherwise your notice can be challenged.


4. Be Aware of Re-Leasing Restrictions

In some cases

• You cannot immediately re-rent the property after ending the tenancy
• There may be restrictions of 6 to 12 months depending on the reason (Urban Family Lawyers)

This is designed to prevent misuse of termination reasons.


5. Be Prepared for Challenges

Tenants now have stronger rights

• They can challenge your notice at tribunal
• They can question whether your reason is genuine (Tenants’ Union of NSW)

This increases the importance of doing everything correctly.


The Risk for Self-Managing Landlords

Without professional guidance, common mistakes include

• Using the wrong termination reason
• Incorrect notice periods
• Missing documentation
• Invalid notice format

These mistakes can result in

• Delays in vacant possession
• Legal disputes at NCAT
• Financial loss


Strategic Insight

This change shifts the market from

“Landlord control”
to
“Process and compliance driven management”

The landlords who succeed moving forward will be those who

• Understand the law
• Follow structured processes
• Manage documentation properly


Final Thoughts

The end of “no grounds” evictions is one of the biggest changes in NSW rental laws.

It provides more stability for tenants, but also increases the responsibility on landlords.

For self-managing landlords, this means

• More compliance
• More documentation
• Less room for error


Thinking of Managing Your Property the Right Way?

If you are unsure how these changes affect your property

Welton Realty can guide you through a compliant and structured approach to property management.

Will you Welton your property?


Disclaimer: The information provided is general in nature and does not constitute legal advice. While every effort has been made to ensure accuracy, Welton Realty makes no guarantee as to the completeness or reliability of the information. You should seek independent professional advice tailored to your individual circumstances.