When and how rent can be increased
If and when a landlord can increase the rent depends on the type and term of the tenancy agreement between the landlord and the tenant.
When rent can be increased
Fixed-term agreements
A fixed-term agreement is an agreement for a specific period, for example 6 months or 1 year.
Fixed term of less than 2 years
For agreements with a fixed-term of less than 2 years, the landlord or agent can only increase the rent during the fixed-term if the agreement sets out the increased amount or how the increase will be calculated.
The term in the agreement must spell out the amount of the increase or the exact method of calculating the increase (e.g. a dollar amount or %). It cannot be unclear, for example statements like 'in line with the market' or 'by the rate of inflation'.
Where a fixed-term agreement of less than two years spells out the amount of the increase or the exact method of calculating the increase, the landlord or agent does not need to give the tenant written notice of the increase.
Fixed term of 2 years or more
For agreements with a fixed-term of 2 years or more, the rent can only be increased once in a 12-month period.
The rent can be increased whether or not the amount or method of calculating it is specified in the tenancy agreement.
The landlord or agent must give the tenant at least 60 days written notice.
It is important to note that for these agreements the tenant can choose to give 21 days written notice to end the tenancy because of the rent increase and vacate before the rent increases.
Periodic agreements
If the agreement does not specify a fixed-term or if the fixed-term period of the tenancy agreement has ended and the agreement is a continuing (periodic) tenancy, then 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.
This also applies where the tenancy is renewed.
No written agreement
For a tenancy without a written agreement, a landlord cannot increase the rent during the first 6 months.
How does a landlord increase the rent?
Except in the case of fixed-term tenancies for less than 2 years, a landlord or agent wishing to increase the rent must provide the tenant 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.
A landlord can either write their own notice or use our notice of rent increase form. Note that an email about the rent increase from a landlord or the agent can be the rent increase notice.
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