What landlords should know about rent increases
When a landlord can increase rent will depend on the type and term of the tenancy agreement between the landlord and the tenant.
When and how a landlord can increase the rent
- When and how often the rent can be increased will depend on whether the residential tenancy agreement is a fixed term agreement, a periodic agreement, or if there is no written agreement.
- In many cases, landlords must give tenants at least 60 days written notice of an increase.
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.
Fixed term agreements of less than 2 years
If the agreement is for a fixed term of less than 2 years, rent can only be increased if the agreement sets out the increased amount or how the increase will be calculated.
The agreement:
- must spell out the amount of the increase or the exact method of calculating the increase (for example, a dollar amount or a percentage)
- cannot be unclear (for example, statements like 'in line with the market' or 'by the rate of inflation' are not sufficient).
If the agreement sets out this information and the date on which the rent will be increased, the landlord or agent does not need to give the tenant written notice of the increase.
If the agreement does not state the date the rent increase will start, the landlord or agent must give the tenant at least 60 days' written notice before the increase comes into effect.
Fixed term agreements of 2 years or more
If the agreement is for a fixed term of 2 years or more, rent can only be increased once in a 12-month period. The amount of the increase or method of calculating it does not need to be written into the agreement.
The landlord or agent must give the tenant at least 60 days written notice of the increase.
A landlord or agent also needs to give the tenant at least 60 days written notice of a rent increase that will apply under a renewal of the agreement.
The tenant can choose to give 21 days’ written notice to end the tenancy because of the rent increase and vacate before the rent increase begins.
Periodic (continuing) agreements
- Rent can only be increased once in a 12-month period.
- The landlord must give the tenant at least 60 days written notice before the increase starts.
- The 60 days notice requirement also applies where the tenancy is renewed.
Increasing rent with no written agreement
- A landlord cannot increase rent during the first 6 months.
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.
Get help from NSW Fair Trading
Ask a question, get support, make a complaint, give feedback or get help with a dispute on matters relating to residential tenancies.
NSW Fair Trading call centre: 13 32 20
Monday to Friday, 8:30am-5pm