Legal & Contracts

Medium-Term Rental Rules in NSW

How medium-term rentals work in New South Wales — where the short-stay line sits, how your deposit is handled, and what to check before you sign.

9 min read24 Sept 202612 views

New South Wales has the shortest short-stay threshold of any mainland state, which makes it one of the easier places to work out where a medium-term stay sits — and one of the easier places to get it wrong if you assume the rules match Victoria's.

Where the line falls

The Residential Tenancies Act 2010 does not apply to short-term rental accommodation. What counts as short-term rental accommodation (STRA) is set by the planning and fair trading framework rather than by a single number in the tenancy Act, and it carries a maximum occupancy period — commonly described as up to three months. A longer arrangement is far more likely to be a residential tenancy, with everything that follows: a written tenancy agreement, bond lodgement with NSW Fair Trading, statutory notice periods, and access to the NSW Civil and Administrative Tribunal.

A common misunderstanding worth correcting: the figure of 21 days that circulates in NSW discussion is not the point at which a stay becomes a tenancy. It belongs to the day-cap rules described below — a non-hosted booking of 21 or more consecutive days to the same guests does not count toward the annual cap in capped areas. It is an exemption from a planning limit, not a tenancy threshold.

The short-term rental accommodation framework

NSW also runs a separate registration regime for short-term rental accommodation, which most people encounter as the rules constraining whole-home holiday letting. It includes a state-wide register, a code of conduct binding hosts, guests and platforms, and day caps in parts of Greater Sydney for non-hosted stays.

Two details matter for anyone booking a medium-term stay. First, the caps apply to short-term letting, and a longer booking is not what they were written to constrain — if a host says they can only offer a limited number of nights, they are describing the short-term regime. Second, this is where the 21-day figure actually lives: a non-hosted booking of 21 or more consecutive days to the same guests is exempt from counting toward the cap, which is precisely why longer bookings are attractive to hosts in capped areas.

Bonds and deposits

Under a NSW residential tenancy, the bond is lodged with NSW Fair Trading through Rental Bonds Online. It is held by the state, not by the landlord or agent, and released by agreement or by tribunal decision.

Where a stay is short-stay accommodation and falls outside the tenancy framework, there is no such lodgement. A security deposit is held by the operator instead.

How EzyFlats handles NSW: stays in New South Wales are documented as short-stay agreements, and the security deposit is held by EzyFlats rather than lodged with NSW Fair Trading. EzyFlats is a licensed real estate agency in South Australia only, so it does not act as an agent for NSW tenancies. The agreement still sets out the term, the rate, the inclusions and the cancellation terms in writing.

Rent increases and notice

Under a NSW residential tenancy, rent cannot be increased during a fixed term unless the agreement provides for it and specifies the amount or method. During a periodic agreement, tenants must receive at least 60 days' written notice, and increases are limited in frequency.

A fixed-term medium-term arrangement sidesteps most of this by simply not being long enough for an increase to arise. The rate you agree is the rate for the term.

What is actually different in NSW

  • The 21-day figure is a day-cap exemption, not a tenancy threshold. It is the most commonly misreported rule in NSW short-stay discussion.
  • The STRA register and code of conduct govern short-term letting and bind platforms as well as hosts.
  • Sydney day caps constrain non-hosted short-term letting in parts of Greater Sydney. They are a short-term rule, not a medium-term one.
  • NCAT handles tenancy disputes cheaply and relatively quickly — but only for arrangements that are actually tenancies.

Practical advice for a NSW medium-term stay

Ask the operator directly which framework your stay sits in. For anything past three weeks in NSW, that is a question with a real answer, and a good operator will give it plainly. Then check that the agreement matches what they told you — including where the deposit is held and what the conditions for its return are.

What to get in writing, wherever you are

  1. The exact term — start and end dates, and how to extend.
  2. The total cost — the weekly rate, every fee, and precisely what is included.
  3. Where the deposit sits — lodged with a state authority, or held by the operator.
  4. Cancellation terms for both sides.
  5. A date-stamped condition record at move-in. Ten minutes of photographs is the best protection against a deposit dispute there is.

Sources

The thresholds and processes described above come from the relevant state and territory authorities:

A note on this guide

This is general information about how Australian tenancy law treats shorter stays, not legal advice. Thresholds and rules change, and how they apply depends on the specifics of your arrangement. For advice on your own situation, check with the tenancy authority in your state or get independent legal advice.

Josh EzyFlats

Josh EzyFlats

Published 24 September 2026