NSW rent increase rules, explained
How often your rent can go up, how much notice you need, and what to do if the increase is too early or too high.
Short version: in NSW, rent can't go up in the first 12 months of your tenancy or more than once every 12 months, and you need at least 60 days' written notice stating the new rent and start date. There's no cap on the amount, but you can dispute an excessive increase at NCAT within 30 days.
1. Once every 12 months, per tenancy
Rent can't be increased within the first 12 months of a tenancy. After an increase, the landlord must wait at least 12 months before the next one. This applies to:
- periodic (continuing) agreements
- fixed-term agreements of 2 years or more
- fixed-term agreements under 2 years that began on or after 13 December 2024
Renewing your lease doesn't reset the clock. If the landlord is the same, at least one tenant stays on the agreement and you haven't moved out, the new agreement counts as the same tenancy for rent increase purposes.
2. How much notice you need
Your landlord or agent must give you written notice at least 60 days before the increase takes effect. A letter, email or the NSW Government's notice form are all acceptable. The notice must state:
- the new rent amount, not just the amount of the increase
- the date the new rent applies from
If the notice comes by post, allow for delivery time. The Tenants' Union of NSW advises adding 7 working days when a notice is posted.
3. Fixed-term leases
| Your lease | Can rent go up during the term? |
|---|---|
| Fixed term under 2 years | Only if the agreement sets out the increase amount or exact method, such as a dollar amount or percentage. Limited to once every 12 months if the lease began on or after 13 December 2024. |
| Fixed term under 2 years, signed before 13 December 2024 | Only increases written into the agreement with an exact amount or method. These can apply until the fixed term ends. After that, the 12-month limit applies. |
| Fixed term of 2 years or more | No more than once every 12 months, with 60 days' written notice. |
Vague terms like "in line with the market" or "by the inflation rate" aren't specific enough to allow an increase.
4. If the notice doesn't follow the rules
If the notice is too early, isn't in writing, or doesn't state the new rent and start date, you don't have to pay the increased rent. Keep paying your current rent and write to your agent or landlord explaining why the notice isn't valid.
If you've already paid an increase that wasn't allowed, you can apply to NCAT to get the money back. You must apply within 12 months.
5. If the increase seems too high
NSW doesn't set a maximum amount. If you think an increase is excessive, you can apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the notice. You'll need to show the increase is excessive.
NCAT can consider rents for similar places in the same or a similar area, the landlord's outgoings, the state of repair and amenities, previous increases, and improvements you've made. It won't consider your income or whether you can afford the increase. NCAT can set the maximum rent for up to 12 months.
To compare local rents, use the NSW Government's free Rent Check tool.
Common questions
I renewed my lease. Does the 12 months start again?
No. If the landlord is the same, at least one tenant stays on the agreement and you haven't moved out, it's the same tenancy. The 12 months runs from your last increase or the start of your tenancy.
The notice only says "rent will increase by $30". Is that valid?
The notice must state the new rent amount and the date it starts. If it only gives the increase, ask your agent for a corrected notice.
Can my landlord increase rent because of "market rates"?
Market conditions don't change the timing rules. The 12-month limit and 60 days' notice still apply. If you think the new amount is too high, you can dispute it at NCAT within 30 days.
Do these rules apply to boarding houses and social housing?
Boarding houses have different rules. In social housing, rent can change more than once a year when it's only because of a change to your rent rebate. Contact NSW Fair Trading on 13 32 20 or your local Tenants' Advice service if you're unsure.
Check your own notice: the NSW rent increase checker works out the earliest legal start date and writes a message for your agent.