The Residential Tenancies Amendment Act 2024 introduces significant changes that will impact both landlords and tenants. While some updates focus on modernising processes, such as online bond lodgement, this blog highlights the key tenancy termination changes and what they mean for you.

Notice Periods: What’s Changing?

One of the most significant updates is the change in notice periods for periodic tenancies.

  • Tenants can now end their periodic tenancy with just 21 days’ notice, down from the previous 28 days. This means landlords will have less time to find new tenants, increasing the risk of vacant periods and lost rental income.
  • Landlords can now end a periodic tenancy with 90 days’ notice without cause, reinstating a provision that was removed in 2021 and providing property owners with greater flexibility. Additionally, if the property is required for the owner’s principal place of residence, has been sold with vacant possession required, or is needed for employees or contractors, landlords may give only 42 days’ notice.

What This Means for Landlords

Landlords must act quickly once a tenant gives notice, as the shortened timeframe increases the likelihood of gaps between tenancies. Having a plan in place to advertise and secure a new tenant efficiently will be key to minimising income loss.

Fixed-Term Tenancies: Transitional Rules

For fixed-term tenancies expiring between 30 January and 30 April 2025, the previous rules still apply. This means that landlords cannot issue a 90-day no-cause termination to end a fixed-term tenancy during this period. Once the tenancy converts to periodic, the new rules come into effect.

Example: If a fixed-term tenancy expires on 1 March 2025, the landlord cannot use the 90-day no-cause termination rule to end it. Instead, the tenancy will automatically roll into a periodic tenancy unless a different agreement is made between the landlord and tenant. Once it becomes periodic, the landlord may then issue a 90-day notice to end the tenancy if they choose.

Retaliatory Termination: Stricter Rules

The new amendments clarify that landlords cannot issue a 90-day no-cause termination in retaliation against tenants who exercise their legal rights.

For example, if a tenant requests urgent repairs and the landlord responds by issuing a termination notice, the tenant can challenge this at the Tenancy Tribunal. Landlords found guilty of retaliatory termination may face exemplary damages, and tenants now have up to 12 months to bring a claim.

The Key to Maximising Returns: Good Tenants and Good Relationships

At the heart of these changes is a simple reality: tenant turnover is costly. The best way to maximise rental returns isn’t just about understanding the law—it’s about finding good tenants and ensuring they want to stay.

  • Maintain positive relationships by keeping open lines of communication.
  • Respond to maintenance requests promptly to show tenants their well-being matters.
  • Provide a well-maintained home that tenants will take care of in return.

While these tenancy law changes introduce new challenges, proactive landlords who focus on building strong tenant relationships and staying informed will navigate them successfully. Working with a rental property manager in the Hibiscus Coast can help ensure a seamless transition between tenants, reducing stress and potential financial loss. 

Navigating these tenancy law changes can be complex. Working with professional property management services ensures landlords stay compliant while maximising their rental income. If you have any questions about how these changes affect your property, seek professional advice or visit Tenancy Services for more information.