This article is general information only and does not constitute financial or tax advice. Consult a qualified tax professional for advice specific to your situation.
Key takeaways
- Most Australian states require at least 60 days' written notice for a rent increase, and some states require a specific official form.
- Rent can only be increased once every 12 months on a periodic tenancy, and generally not during a fixed-term lease unless the lease includes a rent review clause.
- A modest increase of 3 to 5 per cent in line with market rates and CPI is less likely to push a good tenant out than a sudden large jump after years of no movement.
- Timing matters: sending a rent increase notice in January or February, when the rental market is strongest, gives you the best position if the tenant chooses to leave.
Raising the rent is one of the decisions Australian landlords dread most. Get it wrong and you lose a reliable tenant, face a vacancy, and end up spending more money replacing them than the increase was ever going to earn you. Get it right and your rent stays aligned with the market, your investment keeps working, and your tenant stays put.
This guide covers when you can legally increase rent, how much notice you need to give, how to pick the right amount, and how to have the conversation without damaging a good relationship.
When You Can (and Cannot) Increase Rent
The rules vary by state, but the two most important restrictions are consistent across Australia: you generally cannot increase rent during a fixed-term lease unless the lease agreement specifically allows it, and you can only increase rent once every 12 months on a periodic tenancy.
During a fixed-term lease, the rent amount you set at the start is locked in for the duration of the agreement, unless you included a rent review clause when the lease was drawn up. If your lease is silent on this, the rent stays where it is until the fixed term ends. Attempting to increase rent mid-lease without that provision in writing is a breach of the agreement and will not hold up if a tenant challenges it.
On a periodic (month-to-month) tenancy, you can review the rent, but only once in any 12-month period. Most landlords build this in at the point of lease renewal. When the fixed term ends and the tenancy rolls over, it becomes a natural moment to bring the rent to market without any awkwardness.
Notice Periods by State
Even when you are legally entitled to increase the rent, you must give the tenant proper written notice before the new amount takes effect. The required notice period differs by state:
Queensland: 2 months' written notice. Queensland also introduced rules in 2023 limiting rent increases to once per 12 months, tying increases to the specific tenancy rather than the property.
New South Wales: 60 days' written notice for periodic tenancies. For fixed-term leases with a rent review clause, 60 days is also the standard.
Victoria: 60 days' written notice, and rent can only be increased once every 12 months. Victoria has some of the strictest protections for tenants in the country, so it is worth making sure your notice form complies with the Residential Tenancies Act requirements.
South Australia, Western Australia, Tasmania, ACT, NT: Rules differ in each jurisdiction. The general minimum across these states is 60 days, but check the specific legislation for your state before you send any notice.
The notice must be in writing and must specify the new rent amount and the date it takes effect. Some states, including Queensland and Victoria, require you to use a specific official form. Using a plain letter when a prescribed form is required may mean your notice is invalid. Check the relevant tenancy authority website for your state to download the correct document.
How Much to Increase
There is no universal formula, but two reference points help most landlords land on a reasonable number.
The first is the current market. Search comparable rentals in your suburb on realestate.com.au or domain.com.au (same property type, similar features, same general area) and see what they are listing for right now. If your rent is meaningfully below what similar properties are achieving, you have room to move. If you are already at or above market, pushing higher is likely to cost you the tenant. Our guide to setting the right rent price walks through this research process in detail.
The second is CPI. If you have not increased rent in 12 to 24 months, applying an increase roughly in line with inflation, somewhere in the range of 3-5% depending on the current CPI, is generally seen as fair and is unlikely to prompt a tenant to start looking elsewhere. A sudden jump of 15–20% to catch up to market after years of no movement tends to end tenancies.
The tension every landlord faces here is real: you want your investment to keep pace with costs, but you also know that a good long-term tenant is worth more than a few extra dollars a week. Factor in what a vacancy would actually cost you (lost rent, reletting fees, time and effort) before deciding how hard to push. For a broader look at holding costs, see our guide to the cost of owning a rental property in Australia.
How to Communicate It
A rent increase should never come as a shock. If you have a good relationship with your tenant, let them know it is coming before the formal notice arrives. A quick message saying you will be sending a rent review notice, what the new amount will be, and when it takes effect is a small gesture that preserves goodwill.
The formal written notice is still required regardless; the conversation is in addition to it, not instead of it. Send the notice with enough lead time that you are comfortably within the required period, and keep a copy for your records.
Be straightforward about your reasoning if the tenant asks. "Rents in the area have moved and I'm bringing the property in line with the market" is a plain, honest answer that most tenants will accept, even if they are not thrilled about it.
Timing Matters More Than Landlords Realise
The time of year you send a rent increase notice affects how the tenant responds to it. Sending a notice in November or early December, when your tenant is thinking about Christmas, summer holidays, and family commitments, is poor timing. They are more likely to feel pressured and more likely to decide to look for something else rather than deal with the stress of a move during the holiday period.
Sending the notice in January or February, when people are settled back into routine and the rental market is at its most active, gives the tenant a clearer head to assess their options. If they choose to stay, you have a smooth transition. If they choose to leave, you are entering the market at the best possible time to find someone new. For more on this, see our guide to managing tenants and leases in Australia.
If Your Tenant Objects
A tenant who disagrees with a rent increase has options depending on the state. In most jurisdictions, they can apply to the relevant tribunal (VCAT in Victoria, NCAT in NSW, QCAT in Queensland) to have the increase reviewed if they believe it is excessive. In practice, this is uncommon, particularly if the increase is modest and in line with market rents.
The more common outcome is a negotiation. A tenant might come back and ask if you would hold the increase at a slightly lower figure in exchange for signing a new fixed-term lease. That is often a reasonable outcome for both sides: you get security, they get certainty.
If the tenant decides to leave rather than accept the increase, respect the process. They are entitled to give proper notice and vacate at the end of their notice period, and you are entitled to re-let at the new rate. The relationship may be ending, but how it ends matters. A tenant who feels treated fairly will leave the property in good condition and cause you a lot less trouble on the way out.
Keeping Track of It All
Rent increases affect your annual income figures, your tax records, and your sense of whether each property is actually working for you. Keeping a note of when the last increase took effect, what the current rent is, and when you are next eligible to review it is the kind of thing that slips through the cracks when you are managing properties alongside a full-time job.
propkt tracks the rent amount and key lease dates for each of your properties, so you can see at a glance when a rent review is due and what the current weekly rate is. It also tracks what the property earns across the financial year, which is useful when you are assessing whether an increase is actually making a difference to your bottom line, or whether the costs are still outpacing the income.
That said, how a rent increase interacts with your overall tax position depends on your specific situation. Always speak with your accountant before making decisions based on income projections alone. And if you want to understand whether your properties are making or losing money, keeping good tenants is part of that picture too.
Want to keep your rent, lease dates, and property income in one place? Try propkt free for your first property.