What is the Maximum Rent Increase Allowed in NSW? [2025 Complete Guide]
Key Takeaways
- NEW LAW: Rent can only be increased once every 12 months in NSW (effective October 31, 2024)
- Landlords must provide at least 60 days written notice before any rent increase
- No statutory cap on how much a landlord can increase rent by, but tenants can challenge excessive rent increases
- Different rules apply for fixed-term agreements less than 2 years signed before October 31, 2024
- Tenants have 30 days after receiving the rent increase notice to challenge at NCAT
Understanding Rent Increases in New South Wales
Rent Increase Rules and Regulations in NSW
The NSW Government has established clear rules regarding rent increases through the Residential Tenancies Act 2010. These regulations protect both tenant and landlord rights while ensuring fair rental market practices.
How Often Can Rent Be Increased?
Under current NSW rent increase rules:
- Rent can only be increased once every 12 months
- Landlords must give at least 60 days written notice
- The landlord must write their own notice or use the official notice of rent increase form
- The new rent amount and date must be clearly stated
Frequency Limitations
Type of Agreement | How Often | Notice Needed | First Allowed |
---|---|---|---|
New Tenancies | Once per 12 months | 60 days | After 12 months |
Periodic | Once per 12 months | 60 days | After 12 months |
Fixed Term (New) | Once per 12 months | 60 days | After 12 months |
Pre-Oct 2024* | Special rules apply | 60 days | See agreement |
*Special provisions apply for fixed-term agreements less than 2 years signed before October 31, 2024.
Maximum Allowable Rent Increase
While there’s no set cap on how much a landlord can increase rent by, any proposed rent increase must be reasonable. Factors considered include:
- Current market rent for similar properties
- Property condition and improvements
- Time since the last increase
- Local rental market conditions
Understanding Rent Increase Notice Requirements
Notice of Rent Increase Form
When a landlord can increase the rent, they must provide:
- Written notice before the rent increase takes effect
- At least 60 days notice period
- Clear statement of the new rent amount
- Specific date when the rent increase is due
Rent Increase Notice Must Include
The notice of a rent increase must clearly state:
- The amount of the rent increase
- When the rent increase takes effect
- Contact details for NSW Fair Trading
- Information about the tenant’s right to challenge excessive rent increases
Tenant Rights and Protections
Challenge Excessive Rent Increases
Tenants in NSW can:
- Apply to the NSW Civil and Administrative Tribunal (NCAT)
- Seek advice from your local Tenants Advice and Advocacy Service
- Use the NSW Rent Tracker to compare the median rent
- Request legal advice about the increase
When is a Rent Hike Excessive?
A rent increase is excessive when:
- It’s significantly above market rent
- The increase isn’t justified by property improvements
- The current rent already reflects market value
- The proposed rent increase is unreasonable
Rent Increases in Fixed Term Agreements
Different Rules for Earlier Agreements
For fixed-term tenancy agreements less than 2 years signed before October 31, 2024:
- Multiple increases may be allowed if specified in the rental agreement
- The amount of the increase must be clearly stated
- Vague terms like “market rate” are invalid
New Agreements and Renewals
For all new agreements:
- Still considered the same rental agreement for the purposes of rent increase rules if:
- Same landlord
- At least one continuing tenant
- No break between agreements
How to Handle a Rent Increase Notice
When You Receive a Rent Increase Notice
Steps to take:
- Check the notice meets legal requirements
- Compare with local market rent using NSW Rent Tracker
- Consider using the rent increase negotiation kit
- Seek advice from your local Tenants’ Union of NSW if needed
Negotiating Lower Rent
Tenants can:
- Use the NSW Government’s Rent Check tool to compare median rent
- Gather evidence about market rent in your area
- Negotiate with your landlord for a lower rent increase
- Consider challenging an excessive rent increase altogether
Where to Get Help
Support Services Available
1. NSW Fair Trading:
- Official guidance
- Notice of rent increase form
- Dispute resolution services
2. Tenants’ Union of NSW
- Free legal advice
- Tenant advocacy support
- Resources and guides
3. Local Tenants Advice and Advocacy Service
- Personal assistance
- Rights information
- Negotiation support
Recent Changes to Rent Rules and Regulations
The October 2024 amendments introduced key changes:
- Rent can only be increased once every 12 months
- Enhanced tenant protections
- Clearer notice requirements
- Improved dispute processes
Regarding Rent Increases in 2025
Additional reforms planned include:
- New protections for tenants
- Modified dispute resolution processes
- Enhanced rental market monitoring
- Strengthened tenant rights
Remember: If you believe the rent increase is excessive, you have 30 days after receiving the rent increase notice to apply to the NSW Civil and Administrative Tribunal for a review.
For the most current information and assistance about rent increases, contact NSW Fair Trading or your local Tenants Advice and Advocacy Service.
Frequently Asked Questions
How often can rent be increased in NSW?
- Since October 2024, rent can only be increased once every 12 months, and the landlord must give at least 60 days written notice
What notice of rent increase must landlords provide?
- Landlords must provide at least 60 days written notice before the rent increase takes effect
Can a landlord raise the rent by any amount in NSW?
- While no set cap exists, tenants can challenge excessive rent increases through NCAT
How do I use the NSW Rent Tracker to check market rent?
- NSW Rent Tracker shows the median rent in your area to compare proposed rent increases
When should I challenge an excessive rent increase?
- Apply to the NSW Civil and Administrative Tribunal within 30 days of receiving the rent increase notice
What must a notice of rent increase form include?
- New rent amount, date increase takes effect, and must be properly addressed to the tenant
How does the rent increase negotiation kit help tenants?
- Provides tools and templates to negotiate lower rent increases with your landlord
What are the rules for rent increases in fixed-term agreements of less than 2 years?
- Key answer: Different rules apply for agreements signed before October 31, 2024
How can the Tenants’ Union of NSW help with rent increases?
- Provides legal advice and support for challenging excessive rent increases
What makes a rent increase excessive in the rental market?
- Above market rent for similar properties or unjustified by property condition
Can rent still be increased during a fixed-term tenancy agreement?
- Only if specified in pre-October 2024 agreements less than 2 years
How is market rent determined for rent increases in NSW?
- Based on comparable properties, using NSW Rent Tracker and local market data
What happens if I receive a rent increase notice without proper notice?
- Invalid unless the landlord provides at least 60 days written notice
How do I challenge a rent increase through NCAT?
- Apply within 30 days of receiving notice, providing evidence of an excessive increase
Where can I get advice about rent increases in New South Wales?
- Contact NSW Fair Trading, local Tenants Advice and Advocacy Service, or Tenants’ Union of NSW