Rent increases: what your agent can and can't do
Rent rises are part of renting, but they come with rules on notice, frequency and fairness. Knowing them puts you in a better position to negotiate.
RentBuy Team
3 min read
A notice of a rent increase is rarely welcome, but it is not something you simply have to accept or move out. Every state and territory sets rules on when rent can go up, how much notice you must be given and what you can do if you think the new amount is unreasonable. The details differ, so check your local tenancy authority, but the shape of the rules is similar everywhere.
During a fixed-term lease
If you are on a fixed-term lease of a year or less, the rent generally cannot be increased during the term unless the lease itself says so and sets out how the increase will be worked out. If the lease is silent, the rent stays where it is until the term ends. Read the lease before you sign it; a clause allowing increases is easy to miss.
On a periodic lease
Once the fixed term ends and you roll onto a periodic or month-to-month arrangement, the landlord can increase the rent, but only with written notice, usually of 60 days, and no more often than the law allows. In most states that is once every twelve months. A notice that gives too little time or comes too soon after the last rise is not valid, and you can say so.
What counts as too much?
There is no fixed cap on increases in most of Australia, but you can apply to your state's tribunal if you believe a rise is excessive compared to similar homes in the area. The tribunal looks at rents for comparable properties, the state of the home and any improvements made. Before you go that far, check what similar homes are renting for on RentBuy; the numbers are your best evidence either way.
How to respond
If the increase is in line with the market, the practical choice is often to accept it and stay rather than pay the costs of moving. If it is above the market, reply in writing, cite comparable rentals nearby, and propose a smaller increase or a longer lease at the new rent. Property managers would rather keep a reliable tenant than find a new one, and many increases are negotiable if you ask.
Two things to keep
Keep every notice you receive, with the date it arrived, and keep your lease. If a dispute ever reaches the tribunal, those two documents are usually what decide it.
