Tenants and rent increases
Rent increases during a tenancy and how to resolve disputes about 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.
This limit applies to fixed term and periodic agreements.
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.
Fixed term agreements before 31 October 2024
Agreements that started before 31 October 2024 and that are for a fixed term of less than 2 years will have different rules.
These agreements can have more than 1 rent increase in a 12 month period, but only if the increase:
- is written into the rental agreement, and
- details the amount of the increase or the exact method of calculating the increase (e.g. a dollar amount or percentage). It cannot be unclear, such as statements like ‘in line with the market’ or ‘by the rate of inflation’.
Any increase not written into the agreement is not valid.
If the written agreement also includes the date the increase starts, then the landlord or agent does not need to give the tenant written notice of the increase.
Once the term of the agreement has finished, any new or renewed agreement will have the 12 month rule.
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.
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.
Resources and tools
Rent Check
Rent Check allows renters, landlords and the community to quickly and easily check and compare the median rent range in any NSW postcode. Get started now.
