What NSW’s No-Grounds Eviction Ban Means for Property Investors: Certainty or Constraint?

The landscape for property investors in New South Wales is shifting again, and this time, it’s the rental regulations that are under the microscope. With a ban on no-grounds evictions set to roll out from 19 May 2025, landlords may soon be required to give a reason when asking tenants to vacate.

But what does this really mean for investors? Is this a red flag or just another adjustment in the ever-changing world of property ownership? Let’s take a closer look at what’s changing and how to navigate it.

Why Are No-Grounds Evictions Being Scrapped?

The NSW Government has confirmed it will end the practice of no-grounds evictions. These currently allow landlords to end a periodic lease with 90 days’ notice, even if the tenant hasn’t breached the agreement. The move is part of a broader push to improve housing stability for renters. With one-third of NSW residents now renting and many experiencing cost-of-living stress, the reforms aim to reduce uncertainty and foster more stable tenancies.

While this may sound like a loss of control for landlords, the government maintains that it’s about striking the right balance—giving renters security, while ensuring landlords can still make decisions based on legitimate needs.

What Landlords Can Still Do

The term "no-grounds eviction" can be misleading. What’s being removed is the ability to evict without giving a reason, not the ability to evict entirely. Landlords will continue to have the right to terminate a lease under reasonable grounds, including:

• Breaches of lease (e.g. rent arrears, damage to the property)
• Selling the property
• Major renovations or repairs (as long as the property isn’t relisted for rent or sale within four weeks)
• Owner or family member moving in
• Change of use (e.g. converting to commercial or short-term rental)
• Tenant no longer eligible for specific housing (e.g. student or affordable housing)

For investors, this means you can still act in your best interests when necessary—the key is ensuring your reasons are valid and your paperwork is in order.

New Notice Periods: What to Know

If you’re planning to end a tenancy, timing will become more important under the new rules. Here’s a quick summary of the updated notice periods:

• Fixed-term lease (6+ months): Notice to vacate increases from 60 to 90 days
• Fixed-term lease (<6 months): Notice increases from 30 to 60 days
• Periodic lease: Remains at 90 days (with grounds required)

While this gives tenants more time to plan their next move, it also means investors need to be thinking further ahead when planning a sale, renovation, or transition.

The Portable Bond Scheme – What It Means for You

Alongside the eviction changes, the NSW Government will introduce a portable rental bond scheme. Renters will be able to digitally transfer their bond from one property to another, reducing upfront costs when moving. From an investor’s perspective, this doesn’t affect how or when you receive the bond. Your rental property is still protected. But it may help streamline the move-in process for prospective tenants, especially in tight markets.

Is This a Red Flag for Investors?

For some, changes like these spark concern: are landlords losing more rights? Is this the beginning of overly restrictive tenancy laws? But here’s the other side—certainty works both ways. Just as tenants benefit from clearer rules, landlords gain peace of mind when managing their properties within a well-defined legal framework. With a solid property manager by your side, you can still handle issues like non-payment, damage, or necessary sales with confidence. The process just requires more transparency.

So, What Should You Do Next?

Here’s how smart investors are preparing:

• Review your lease agreements to ensure they’re up to date and include clear clauses around breaches and notice periods
• Start early when planning sales or renovations, because with longer notice periods, timing matters more than ever
• Work with a proactive property manager who knows how to manage communication with both tenants and Fair Trading
• Stay informed—laws can and do change. What’s in place now may evolve again, and we’ll keep you posted

At Club Property Management, we’re here to help our owners stay ahead of the curve. From navigating changes in legislation to ensuring your property continues to perform, we’re focused on protecting your investment without the stress.

Have questions about the new regulations? Contact our team at leasing@clubpropertymanagement.com.au to ensure your property strategy stays on track.