Do I need my landlord’s permission to sublet in NSW?
Yes — you need your landlord’s written consent to sublet in NSW, and the rules are stricter for some situations than others.
What “sub-letting” actually means
Sub-letting means you (the head-tenant) rent out all or part of your home to someone else (the sub-tenant). You stay on the original lease with your landlord. The sub-tenant pays rent to you, not to the landlord.
The key difference between sub-letting and transferring your tenancy: a transfer hands over the whole lease to someone else, so you leave entirely. Sub-letting keeps you on the lease.
Sub-letting is also different from having a boarder or lodger. A boarder or lodger usually has fewer legal protections and a more informal arrangement. The distinction matters — but this article focuses on sub-letting under the Residential Tenancies Act 2010.
Importantly, as a head-tenant you take on some of the rights and obligations of a landlord in relation to your sub-tenant. That includes lodging their bond with NSW Fair Trading and meeting the s63 obligation to provide and maintain the premises in a reasonable state of repair.
The alternative — an “additional occupant” (no consent required)
Not every arrangement where someone new moves in is a sub-let. If you invite a person to live with you without giving them a separate rental agreement for part of the property, NSW Fair Trading treats them as an “additional occupant” rather than a sub-tenant. Section 10 of the Residential Tenancies Act confirms an occupant who is not named on the lease, has not had the tenancy transferred to them, and is not a sub-tenant is not a tenant under the Act at all.
You do not need your landlord’s consent for an additional occupant, but you must not exceed the maximum number of occupants specified in your tenancy agreement (s75(3)(a)). Charging that person rent for exclusive use of a room will usually flip the arrangement into a sub-let and re-engage the consent rules below.
The core rule — written consent is required (s74)
Under section 74(1) of the Residential Tenancies Act 2010, you can only sub-let if your landlord gives written consent. Verbal agreement is not enough.
“Written” consent includes an email, a letter, or a formal notice. Whatever form it takes, get it before the sub-tenant moves in.
Your landlord cannot charge you just for saying yes. Under s74(2), the landlord must not charge for giving consent beyond their reasonable expenses — for example, the cost of checking a proposed sub-tenant against a tenancy database. A flat fee for “processing” or “admin” is not permitted.
This is not just a lease clause that some landlords include and others don’t. Section 74(3) makes it a term of every residential tenancy agreement in NSW. It applies automatically.
Partial vs full sub-let — the critical distinction (s75)
This is where the law splits, and it matters a lot.
Full sub-let — landlord can refuse without giving a reason
A full sub-let means you move out and hand the whole property to a sub-tenant. Under s75(1), your landlord may refuse consent to a full sub-let whether or not it is reasonable to do so. They do not need to explain their decision. You cannot challenge a refusal at NCAT if it covers the whole property.
Partial sub-let — landlord cannot unreasonably refuse
A partial sub-let means you stay in the property and sub-let part of it — for example, a spare bedroom to a housemate. Under s75(2), the landlord must not unreasonably withhold consent to a partial sub-let.
This is a meaningful protection. If the landlord refuses without a good reason, you have options (see below).
What counts as a reasonable refusal for a partial sub-let?
Section 75(3) sets out grounds on which a landlord is entitled to withhold consent:
- The number of people proposed would exceed what is allowed under the tenancy agreement or any relevant planning approval (s75(3)(a)).
- The proposed sub-tenant is listed on a residential tenancy database in line with the Act (s75(3)(b)).
- The landlord reasonably believes the arrangement would result in overcrowding of the premises (s75(3)(c)).
These are a safe harbour — not an exhaustive list. A landlord could argue other reasons are reasonable, but outside these three, the refusal is more open to challenge. Refusing just because the landlord prefers you to live alone, or to extract a higher rent, is not a sound basis. A blanket “no” with no explanation is a poor basis.
Suitability of the proposed sub-tenant can be a legitimate concern. If you are asking for consent, giving the landlord basic information about the person — their name, rental history, and why they want to move in — makes it harder for the landlord to claim legitimate concerns.
How to request consent in writing
A written request protects you. Here is a practical approach:
- Write to your landlord (email or letter). State clearly that you want to partially sub-let, and that you are seeking consent under section 74.
- Include the proposed sub-tenant’s name and any relevant background information.
- Specify that you will remain living at the property (confirming it is a partial sub-let).
- Give the landlord a reasonable time to respond — a few weeks is reasonable.
- Keep a copy of everything you send and receive.
If you get no response, follow up in writing and keep records. A landlord who goes silent is not necessarily refusing — but you cannot assume silence means yes.
If the landlord refuses a partial sub-let unreasonably
If your landlord withholds consent to a partial sub-let and you believe the refusal is unreasonable, you can apply to the NSW Civil and Administrative Tribunal (NCAT).
Under s75(5), NCAT can order that you may proceed with the partial sub-let if it is satisfied that the landlord’s failure to consent is unreasonable.
To make a strong application, gather your evidence: your written request, the landlord’s written refusal (or records showing no response), and any information showing the proposed sub-tenant is suitable and the request is reasonable. The process for applying to NCAT is worth reading about separately — it involves a prescribed application form, a fee, and a hearing or conciliation process.
What happens if you sub-let without consent?
Sub-letting without your landlord’s written consent is a breach of s74, which is implied into your tenancy agreement by s74(3).
A breach of the tenancy agreement can have serious consequences. Under s87C(1), your landlord may give you a termination notice on the ground of breach. The termination date must be at least 14 days after the notice is given (s87C(2)). If you do not vacate, the landlord can apply to NCAT for a termination order.
The sub-tenant’s position is also precarious. They have no direct rights against the landlord, and their arrangement can unravel quickly if yours does.
Do not sub-let first and seek forgiveness later. Get written consent before anyone moves in.
Social housing tenants
Section 75(4) of the Act states that s75(2) and s75(3) — the rules protecting tenants from unreasonable refusal — do not apply if the landlord is a social housing provider.
This means social housing tenants do not have the same right to challenge a refusal at NCAT under s75(5). Social housing providers can withhold consent to a partial sub-let without that refusal being treated as unreasonable under the Act.
If you are in social housing, the usual starting point is to contact your housing provider directly and ask about their internal policies for adding occupants.
Wondering if your specific sub-letting situation qualifies?
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Sub-letting is one of those areas where the detail matters. The difference between moving out entirely and staying in one room changes your rights completely — and getting the written request right from the start puts you in the strongest position.