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 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 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.