Tenants and rent increases

When and how often can rent be increased

Rent increases can happen at different times and frequency depending on the kind of rental agreement you have. In many cases a tenant must get at least 60 days written notice of an increase.

If you have:

• a fixed-term agreement of less than two years, the rent can only be increased if your agreement sets out the amount of the increase or how it will be calculated. The agreement must be specific about the amount or calculation of the increase. It cannot state that the rent will increase 'in line with market value' or 'consumer price index'.
• a fixed term agreement of 2 years or more, the rent can only be increased once in a 12-month period.
• a periodic (continuing) agreement, rent can only be increased once in a 12-month period.
• no written agreement, a landlord cannot increase the rent during the first six months.

Except in the case of fixed term tenancies for less than 2 years, a landlord or agent wishing to increase the rent must provide you with a written notice of the increase 60 days or more before the increase will take effect. 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
• be signed, dated and properly addressed to the tenant
• be provided on the renewal of a fixed-term agreement.

A landlord can either write their own notice or use our notice of rent increase form.

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:

• negotiate with the landlord
• try to reach an agreement to reduce the amount of the increase or withdraw the increase altogether
• 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.