Rent Increases NSW: A Landlord's Guide

This article is general information, not legal advice, based on guidance from NSW Fair Trading. Rules and time limits can change, so confirm the current position with NSW Fair Trading before you act on anything below.

Getting a rent increase wrong in NSW is an easy way to end up in front of the NSW Civil and Administrative Tribunal (NCAT), or to simply have your notice ignored because it doesn't meet the requirements. Here's what actually applies, and how to plan an increase properly.

How often can you increase the rent?

For a residential tenancy in NSW, rent can be increased no more than once every 12 months. This applies whether you're managing the property yourself or through an agent. You can't get around it by doing two smaller increases six months apart either. It's one increase per 12-month period, full stop.

The 12-month clock generally runs from the start of the tenancy or from the last increase, depending on the agreement type. Keep a clear record of when rent last changed for each property.

Notice requirements

Before any increase takes effect, the tenant must be given at least 60 days written notice. That notice has to include two specific things:

• The new rent amount
• The exact day the new amount starts

A vague notice ("rent will go up soon") or one that's short on time doesn't count. If you're not confident the notice will land correctly, or you're unsure how the 60 days should be counted from the date of delivery, check with NSW Fair Trading before sending it.

Fixed-term agreements: it depends on the length

This is where a lot of landlords trip up, because the rules differ depending on how long the fixed term is.

Fixed term under 2 years

If the tenancy is a fixed-term agreement of less than two years, you can only increase the rent during that term if the agreement itself already sets out the increased amount, or a method for calculating it (for example, a clause specifying the new figure or a formula tied to CPI). If the agreement is silent on this, you generally can't increase the rent until the fixed term ends and a new agreement or periodic tenancy begins.

Fixed term of 2 years or more, and periodic agreements

For a fixed term of two years or longer, or once a tenancy has become periodic (rolling on a continuing basis rather than a set term), the standard rule applies: once every 12 months, with at least 60 days written notice.

The practical takeaway is that if you want flexibility to raise rent during a shorter fixed term, that flexibility needs to be built into the lease from day one. You can't add it later once the tenant has signed.

What if the tenant thinks the increase is excessive?

A tenant who believes a rent increase is too high can apply to NCAT for an order, generally within 30 days of receiving the notice. NCAT will look at things like rents for comparable properties in the area and the condition of the premises when deciding whether the increase is reasonable.

That's a good reason to base any increase on something you can point to (recent comparable listings, the state of the property, work you've done on it) rather than a round number picked because it feels about right. If a tenant does query the increase, having that evidence ready saves a lot of back and forth.

Practical steps for landlords

A few habits make rent increases smoother and keep you on the right side of the rules:

• Track the date of the last increase for every property, not just from memory
• Calendar the 12-month mark well ahead so you're not scrambling to meet the 60-day notice window
• Check what type of agreement is in place (short fixed term, long fixed term, or periodic) before assuming you can increase rent at all
• Put the new amount and start date in writing, clearly, every time
• Keep a note of comparable rents in the area in case the increase is ever queried

FAQ

Can I increase rent by any amount I like?

There's no fixed cap in the rules described here, but an increase can be challenged at NCAT if the tenant considers it excessive, and NCAT will weigh up market rents and the property's condition. Reasonable, evidence-backed increases are far less likely to run into trouble.

Does the 60-day notice have to be in a particular format?

It has to be in writing and must state the new rent and the day it starts. Beyond that, confirm the accepted delivery methods and any specific notice forms with NSW Fair Trading.

What happens if I give less than 60 days notice?

A notice that doesn't meet the minimum period isn't valid, which generally means the increase can't take effect on the date you intended. Build in a buffer rather than sending notice right at the 60-day mark.

Can I increase rent during a fixed term if the lease doesn't mention it?

Not if the fixed term is less than two years and the agreement doesn't already specify the increased amount or a method for calculating it. For fixed terms of two years or more, the standard once-in-12-months rule applies regardless.

Keeping track of increase dates, notice periods and lease terms across multiple properties gets messy fast if you're doing it in spreadsheets and email drafts. EZRENT's landlord tools handle rent ledgers and lease details in one place, so you can see at a glance when a property is due for review and generate the paperwork without missing a step. Have a look at pricing and plans, or sign up to get your properties set up properly.

This article is general information only and is not financial, legal or professional advice. Rules, thresholds and requirements vary by state or territory and change over time - always check the current rules with your local tenancy authority or a qualified professional before acting on anything above.