How much can my landlord increase my rent?

You’ve found a great place, in the right location with affordable rent. But how long will the rent stay that way? We look at how often your landlord can raise the rent.

High property values mean that about one in three Aussies rent their home these days. Renting can have its pluses including flexibility about where you live and more freedom to move – but it can also mean rent rises.

And it’s not just an uptick in rent that can mean digging deeper into your hip pocket. In a number of states including Queensland and the Northern Territory, a rent hike can also mean topping up your bond money.

The good news is that landlords have to follow strict rules around how often rent can be increased, and how much notice must be given.

Even so, it’s still critical to read the lease document carefully. Don’t just assume the lease will be the same as others you’ve signed. In most states, landlords are free to add clauses around when the rent can be raised – and by how much. These conditions may be open to negotiation, but if you sign the lease without reading it thoroughly you could be stuck with terms that favour the landlord while leaving you scratching for extra rent money.

The next step is to know what type of lease you have. Most tenancies start out with a “fixed-term” lease, which covers a set period, typically six to 12 months. Once the formal lease expires, you and your landlord may decide to keep the tenancy going without signing a new lease. This means moving to a “periodic” (rolling or month-to-month) agreement. Different rules may apply about the frequency of rent hikes.

A guide to rental increase rules in each state and territory

Here’s how often your landlord can raise the rent in your part of Australia.

Australian Capital Territory

Fixed-term lease: Rent can’t be increased during the fixed term unless the amount of the increase (or the method for working it out) is set out in the lease.

Periodic agreements: Rent can only be increased once every 12 months.

Notice required: Eight weeks.

New South Wales

Fixed-term lease: If the lease is for less than two years, the rent cannot be increased during the fixed term unless the lease document spells out exactly how much the rent will increase by or the method used to calculate the increase (for example a 1% rise). On leases spanning more than two years, the rent can be increased once every 12 months.

Periodic agreements: Once the formal lease term ends, the rent can only be increased once in a 12-month period.

No written agreement: A landlord can’t increase the rent during the first six months.

Notice required: 60 days.

Northern Territory

Fixed-term lease: The rent can be increased every six months but only if this option has been written into the tenancy agreement. The agreement must also state the amount of the increase or the method of calculation.

Periodic agreements: The rent can be increased every six months.

Notice required: 30 days.

Queensland

Fixed-term lease: The rent can’t be increased during the fixed term unless a rent increase is noted in the lease document. Even then, the rent has to remain unchanged for at least the first six months of the tenancy. The agreement will also have to state the new amount or how it will be worked out.

Periodic agreements: Once you move to a periodic agreement, the rent can be increased every six months.

Notice required: Two months.

South Australia

Fixed-term lease: The rent can be increased once every 12 months. Even if the lease contains a clause that lets the landlord raise the rent during the fixed term, the increase can’t kick in until 12 months have passed since the lease started or since the last rental rise.

Periodic agreements: The rent can only be increased once every 12 months.

Notice required: 60 days.

Tasmania

Fixed-term lease: Rent can only be increased if there is a written lease that allows for rent increases, or if the lease is not in writing. So, in most cases, rent cannot be increased mid-tenancy. It can generally only be increased at the beginning of the lease, or when the lease is renewed or extended.

The rules in Tasmania are designed to let tenants know their rent obligations for the following 12 months. If the lease is for less than 12 months, rent can only be increased 12 months after the tenancy started – even after the lease is extended or renewed. If the lease is for longer than 12 months, the rent can be increased 12 months after the start date of the lease.

Periodic agreements: The rent can be increased once every 12 months.

Notice required: 60 days.

Victoria

Fixed-term lease: Rents can only be increased once every 12 months.  There are no rules about how much the rent can be put up but you must be given information about how the rent increase has been calculated.

Periodic agreements: if your periodic rental agreement started before 19 June 2019, the rent can’t be increased more than once every 6 months. For periodic leases that started on or after 19 June 2019, the rent can only be increased once every 12 months.

Notice required: 60 days.

Western Australia

Fixed-term lease: Rent can only be increased if the written agreement makes it clear how much the rent increase will be (for example, in line with inflation). If that’s the case the rent can only be increased every six months.

Periodic agreements: Rent can be increased every six months.

Notice required: 60 days.

How much can rent increase per year?

The issue of how much rent can increase each year is a hot topic right now. According to SQM Research, rents across Australia’s capital cities soared 26.6% over the 12 months to the end of February 2023.  That’s a substantial rent hike, yet in most states there are no set rules around how much rent can increase per year.

As a guide, in Victoria, the landlord must explain to the tenant how a rent rise has been calculated, though there are no laws that spell out a maximum increase in rent. Only the ACT bucks this trend, allowing rents to rise by a maximum of 110% of inflation. This means a landlord can lift the rent by up to 10% more than the increase in inflation as measured by the Consumer Price Index.

What if you don’t agree with the rent increase?

For the majority of tenants, it can seem easier to just go with the flow and accept a rent hike rather than object to it. But as a tenant you do have rights.

If you believe the increase is unreasonable, first try to negotiate a better deal with the landlord or property manager. If they won’t come to the party, contact the appropriate authority in your state or territory, as shown in the section below.

You should try to act fast. Time limits apply for you to raise an objection. In NSW for instance, you need to apply to the Civil and Administrative Tribunal within 30 days of learning that the rent is about to go up.

You will need to have clear grounds on which to base your argument that the rent hike is unreasonable. This can include the rent no longer being in line with market rents, or that the condition of the property doesn’t merit a raise in the rent. In states such as NSW, the onus is on the tenant to prove that the increase in rent is excessive.

Importantly, keep paying the rent until the matter is resolved. You can’t be placed on a tenant “blacklist” for questioning a rent hike, but if you end up owing more than your bond is worth, your name may be added to a tenancy database, and that can make it a lot harder to secure a new home if you decide to move on.

Who to contact if you think there has been an unfair raise in rent

ACT: ACT Civil and Administrative Tribunal

New South Wales: NSW Civil and Administrative Tribunal

Northern Territory: Northern Territory Consumer Affairs

Queensland: Queensland Civil and Administrative Tribunal

South Australia: South Australian Civil and Administrative Tribunal

Tasmania:  Residential Tenancy Commissioner

Victoria:  Victorian Civil and Administrative Tribunal

Western Australia: Magistrates Court via WA Department of Commerce

Cover image source: Cast Of Thousands/Shutterstock.com