A landlord can increase the rent but there are rules to follow depending on the type of rental agreement. 

If the rules are not followed, the tenant does not have to pay the rent increase.

A tenant can also challenge a rent increase in court.

To increase the rent an agent or landlord must use the Notice to tenant of rent increase (Form 10) (except where the rent is calculated based on the tenant’s income) to give at least 60 days’ notice of a rent increase. The notice includes details of the amount of the increase and the day it will take effect. 

Periodic tenancy (no fixed end date)

Rent increase can happen:

• no more than once every 12 months
• if the tenants are given at least 60 days notice
• if the notice is in writing on Form 10 (residential tenancy) or Form 11 (residential parks).
• if the notice includes the amount of the increased rent and the day it will start.

Fixed-term tenancy (fixed end date)

Rent increases can happen:

• no more than once every 12 months
• if the agreement says:
  • how much the rent increase will be or
  • how the rent increase will be calculated eg. by a percentage, fixed dollar amount, according to inflation.
• if the tenants are given at least 60 days’ notice on Form 10 (residential tenancy) or Form 11 (residential parks).

Rent increases when renewing short-term agreements (eg. every 6 months)?

When you renew your agreement with the same landlord and tenant/s, it is treated as a continuous agreement. There must be at least 12 months since the last rent increase.

Rent increases written in long-term fixed agreements

Signed before 29 July 2024

Rent increases written into the agreement will continue to apply until the end of the tenancy agreement. 

When the agreement ends and is renewed, there must be at least 12 months since the last rent increase.

Rent increase is too high

Tenant/s can apply to the Magistrates Court to ask for a rent reduction, or to argue against a proposed increase.

The Magistrate considers a range of things, including:

• comparable rents for other properties in the area;
• estimated value of the premises;
• cost of upkeep of the property paid by the landlord;
• cost of services provided by the landlord (or tenant);
• value of the contents provided by the landlord for the tenants use; 
• general condition of the property; and
• any other considerations such as a landlord retaliatory action eg. if the rent increase is just to force out the tenant for using their rights).