Tenants and rent increases

When and how often can rent be increased

• Rent cannot be raised within the first 12 months of a tenancy. 
• After an increase, the landlord must wait at least 12 months before another increase.
• Increases do not have to be written down in the agreement.
• These rules apply to periodic agreements and fixed term agreements, except for fixed term agreements of less than 2-years that began before 13 December 2024. 

For fixed term agreements of less than 2 years that began before 13 December 2024:

• where there is no rent increase amount or calculation method written in the agreement, the rent cannot be increased. When the fixed term ends, these agreements will move to the standard rule that limits rent increases to once every 12 months, like all other tenancies. 
• where the agreement has a written rent increase amount or calculation method, the rent can only be increased by following what the written agreement says. The agreement must have the amount of the increase or the exact method of calculating the increase (e.g. a dollar amount or percentage). The increase is not valid if the calculation method is unclear, as the tenant must know exactly what they will need to pay. For example, ‘in line with the market’ or ‘by the rate of inflation’ are unclear and not valid. When the fixed term ends, these agreements will move to the standard rule that limits rent increases to once every 12 months, like all other tenancies.
   

Renewing or replacing your lease

When you renew your agreement or switch to a different type of lease, it’s still considered the same rental agreement for the purposes of rent increase rules if: 

• the landlord hasn’t changed
• at least one of the tenants is the same, and
• the tenant has not moved out of the property between agreements.

This means that if a tenant is already living in the property and the agreement is renewed or the lease type changes, the landlord must wait at least 12 months from the last increase before they can raise the rent.

Social housing agreements and rent increases

Rent can be increased under a social housing tenancy agreement more than once in 12 months if the increases are only due to a tenant’s rent rebate.

For example, social housing agreements may be reviewed to check that the rent rebate offered is in line with the tenant’s income.

For more information on rent and subsidies for social housing, visit Understanding rent, subsidies and reviews.

How a rent increase happens 

A landlord or agent must provide a tenant with written notice of a rent increase 60 days or more before the increase will take effect. 

The landlord can either write their own notice, send the tenant an email, or use our notice of rent increase form. The notice must:

• state the proposed new amount of rent (not the amount of the increase)
• state the date from which the increased rent is payable, and
• be signed, dated and properly addressed to the tenant.

Download our notice of rent increase form

Negotiating a rent increase

If you think a proposed rent increase is too high then, before the new rent amount starts, you can:

• use the NSW Government's Rent Check tool to compare your proposed rent with the median rent range in your postcode
• negotiate with the landlord to reduce the amount of the increase or to withdraw the increase altogether.

If the negotiation is successful, get the landlord or agent's agreement in writing.

If the landlord or agent agrees to a lower increase, it is not necessary for them to send another 60-day notice to you, and the new lower rent increase is due from the same date the original increase was payable.

To get help or make a complaint, you can contact NSW Fair Trading or you can go to the Tenants’ Union of NSW for legal advice, assistance, and information to tenants.

Disputing a rent increase

If you cannot reach an agreement with your agent or landlord, you:

• can apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the rent increase notice if you believe that the rent increase is excessive
• will have to prove that the increase is excessive.

Some of the main evidence the Tribunal considers is comparable rents for similar properties in the same area, the state of repair and amenities provided in the property and the landlord’s expenses.

The Tribunal has the power to set the rent for the next 12 months.