What landlords should know about rent increases

When a landlord can increase the rent

Landlords cannot increase rent within the first 12 months of any tenancy agreement. 

After an increase, a landlord must wait at least 12 months before another increase.

This limit applies to fixed term and periodic agreements.

Renewing or replacing leases

When an agreement is renewed or changed to a different type of lease, it’s still considered the same rental agreement for the purposes of rent increase rules. This applies if: 

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

This means that even if there is a change in the lease type, landlords must wait at least 12 months from the last increase before they can raise the rent.

Fixed term agreements before 13 December 2024

Different rules apply to some agreements that started before 13 December 2024, for a fixed term of less than 2 years.

These agreements can have more than 1 rent increase in a 12 month period 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). The increase method cannot be unclear, for example ‘in line with the market’ or ‘by the rate of inflation’.

Any increase not written into the agreement in this way is not valid and the 12 month rent increase limits will apply.

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 ends, the 12 month rule will apply to any new or renewed agreement.

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 landlord can increase the rent

Landlords must give tenants at least 60 days written notice of an increase. 

Landlords can use the NSW Fair Trading notice of rent increase form or write their own notice. A written notice can also be in the form of an email. 

Regardless of the format, 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

Landlords can use our notice of rent increase form if they do not want to write their own.