When and how rent can be increased

When rent can be increased

Rent increase limits for all lease types

Rent cannot be increased within the first 12 months of an agreement. 

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 leases 

When a tenant renews their agreement or switches to a different type of agreement, 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 on the agreement 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 simply renews or changes their lease type, the landlord 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 does a landlord increase the rent?

A landlord or agent must provide the tenant with a written notice of a rent increase 60 days or more before the increase will take effect.

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

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