A rent increase is when a landlord raises the weekly or monthly rent charged to a tenant. In Australia, landlords can increase rent, but they must follow specific rules about how often, how much notice, and in what circumstances. These rules vary by state and territory.
Rent increases cannot be excessive; they must be in line with the market. And they must follow the correct process, or they may be invalid.
General Rules
While the details differ across states, some principles are common:
- Frequency: rent can usually be increased once every 6 or 12 months, depending on the state and the type of tenancy
- Notice period: landlords must give written notice, typically 60 days before the increase takes effect
- Fixed-term leases: rent generally cannot be increased during a fixed-term lease unless the lease specifically allows it
- Periodic tenancies: rent can be increased during a periodic tenancy with the required notice
- Amount: the increase must not be excessive. Tenants can challenge an increase they believe is above the market rate through their state tribunal
How to Give Notice
The notice must be in writing and state the new rent amount and the date it takes effect. In most states, there is a prescribed form or specific requirements for the notice. Using the correct form is important, as an invalid notice means the increase does not take effect.
Tenant's Right to Challenge
If a tenant believes the increase is excessive, they can apply to the relevant tribunal or authority for a review. The tribunal will consider comparable rents in the area and the condition of the property when deciding whether the increase is fair.
Why It Matters for Landlords
Regular, reasonable rent increases are important for keeping your rental yield in line with the market and covering rising costs. For practical advice on pricing, see our guide on setting the right rent price. But getting the process wrong (wrong notice period, wrong form, or increasing too frequently) can mean the increase is invalid and you may need to start again. Check your state's requirements each time.
propkt tracks current rent amounts and can help you monitor when a review is due based on your lease terms and state requirements. You can also use the rental yield calculator to see how a rent change affects your return.