⚠️ Update – November 2025
The 2026 tenancy reforms outlined in this article are proposed government changes, expected to take effect from 1 March 2026. Legislation has not yet been enacted, so the rules described here apply only to new tenancies starting on or after 1 March 2026. Existing tenancies remain under current law.
For the latest official guidance, see the Department of Housing publication.
1. Tenancy of Minimum Duration (TMD) — Rolling 6-Year Tenancies
- New tenancies from 1 March 2026 will generally be subject to a Tenancy of Minimum Duration (TMD) — a rolling 6-year term.
- During this 6-year period, termination by the landlord is allowed only under specified conditions, such as tenant breach or property suitability concerns.
- Existing tenancies or tenancies started before 1 March 2026 are not affected.
2. Landlord-Size Distinction (Small vs Large Landlord)
The reforms differentiate between:
- Small landlords — those with 3 or fewer rental tenancies.
- Large landlords — those with 4 or more rental tenancies.
Small Landlords (≤ 3 units)
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During the first 6-year tenancy, termination is limited (e.g., tenant breach, hardship, or property suitability).
At the end of the 6-year term, small landlords may terminate using existing legal grounds, including:
- Selling the property.
- Occupation by the landlord or an immediate family member.
- Major renovations requiring vacant possession.
- Changing the use of the property.
Large Landlords (≥ 4 units)
- After the tenancy has begun (and assuming no valid termination notice is served in the first 6 months), the tenancy becomes effectively unlimited in duration.
- Large landlords cannot terminate a tenancy for sale, renovation, family-use, or change-of-use if tenants comply with their obligations.
3. Rent-Setting and Rent Increases / Reset
- Initial rent for new tenancies may be set at market rate if the previous tenancy ended voluntarily or due to tenant breach.
- Annual rent increases are capped at the lower of CPI inflation or 2%, under the national rent-control framework.
- At the end of a 6-year tenancy, landlords may reset rent to market value, provided no “no-fault eviction” was used.
4. What Remains Subject to Legislation
Because these reforms are proposed (not yet enacted), certain details remain subject to change:
- Administrative processes and regulatory oversight.
- Transitional arrangements for rent resets or other procedural matters.
- Specific definitions of hardship or exceptional circumstances.
5. Practical Advice for Landlords
- Review your portfolio and identify whether you qualify as a small or large landlord.
- Avoid assumptions about termination rights, rent increases, or rent resets until legislation is passed.
- Prepare tenancy documentation carefully — noting the new rules apply only to tenancies starting 1 March 2026 or later.
- If you have questions or need personalised guidance, contact us.