When interest rates rise, renters often feel it next. Landlords with mortgages face higher repayments, and some will look to pass those costs on. But there are firm rules about how often rent can go up and how much notice you have to be given, and they apply whatever is happening with interest rates. Here’s the plain-language guide.
How Often Rent Can Go Up
In every state and the ACT, rent can generally be increased no more than once every 12 months. In the Northern Territory, it’s once every six months.
In New South Wales, rent also can’t be increased in the first 12 months of a tenancy, and the 12-month clock follows the tenancy even if a new lease is signed. Rules about increases during a fixed-term lease vary between states, and in some states an increase during a fixed term is only allowed if the lease says so.
How Much Notice You Must Get
Notice has to be in writing and must state the new rent and the date it starts. Most states require 60 days. Victoria requires 90 days, Queensland two months, the ACT eight weeks, and the Northern Territory 30 days. Some states, such as Victoria and Western Australia, require a specific form.
If the notice is shorter than required, or doesn’t include the right details, the increase may not be valid.
Is There a Limit on How Much?
In most states there’s no fixed cap on the size of an increase. But that doesn’t mean anything goes. In most jurisdictions you can challenge an increase you believe is excessive through the relevant tribunal, which will consider things like the rents of similar properties nearby and the condition of the home. In the ACT, an increase above a prescribed amount linked to rent inflation can be challenged, and the landlord has to justify it.
What a Rate Rise Changes, and Doesn’t
A rate rise doesn’t give a landlord any extra right to increase rent sooner or with less notice. If your rent went up five months ago in New South Wales, for example, it can’t go up again until 12 months have passed, whatever the Reserve Bank does.
What to Do If You Get a Notice
Check the dates and the notice period against your state’s rules. Compare the new rent with similar properties nearby on the major listing sites. If it seems high, talk to your landlord or agent first, since a reasonable conversation and evidence of local rents can sometimes reduce an increase. If that doesn’t work, contact your state’s tenant advice service or tenancy authority about challenging it.
Budget early, too. With vacancy rates still tight in many cities and new construction slowing, as our report on falling apartment approvals explains, rental pressure isn’t easing quickly.
The Bottom Line
Rent can generally go up only once every 12 months, or six in the NT, with written notice of 60 days in most states, 90 days in Victoria and two months in Queensland. There’s usually no fixed cap, but excessive increases can be challenged at your state tribunal. Interest rate rises don’t change any of these rules. Check every notice carefully, compare local rents, and get advice if something doesn’t look right. This is general information, not legal advice.
Epik Wire covers the property market in plain language for buyers, renters and owners. Subscribe to our newsletter to stay informed.
