How Much Should You Increase Rent? A Guide for Australian Landlords

How Much Should You Increase Rent Australia: A Complete Landlord Guide

Deciding how much to increase rent on your investment property is one of the most important decisions a landlord can make. A rent increase that is too high risks losing a good tenant, while an increase that is too low means you are leaving money on the table and your rental agreement is not keeping pace with the market.

Understanding the rent increase rules that apply in your state, how much notice you must give, and how much rent you can reasonably charge will help you increase the rent confidently while staying compliant with tenancy legislation across Australia.

How Much Should You Increase Rent Australia: Key Factors

Before you increase the rent on your rental property, you need to consider several factors that determine how much rent you should be charging. The right rent increase amount depends on market rent in your area, the condition of your property, how long your existing tenant has been in place, and the terms of the current rental agreement or lease.

Use our free rental increase calculator to run your own numbers.

Most landlords aim to increase the rent to match the current market rate. This means comparing your property to similar properties in your area that are currently listed for rent. A property manager can provide a rental appraisal to help you determine the appropriate market rent for your investment property. Our rental management guide explains how to compare appraisals, lease terms, and tenant outcomes before making a change.

The consumer price index is another benchmark some landlords use. While not legally required in most states, using CPI as a guide for your rent increase can demonstrate to your tenant that the increased rent is fair and reasonable rather than arbitrary.

Rent Increase Rules by State and Territory

Different rules apply depending on which state or territory your rental property is located in. Understanding the rent increase rules that apply to your lease or rental agreement is essential before serving a rent increase notice.

New South Wales Rent Increase Rules

In New South Wales, a landlord can increase the rent once every 12 months for most tenancies. You must give your tenant at least 60 days notice in writing before the rent can be increased. For a fixed term agreement, the rent can only be increased during the fixed term if the lease specifically allows for it and sets out the increased rent or how the increase will be calculated.

If your tenant believes the rent increase is excessive, they can apply to the NSW Civil and Administrative Tribunal for a rent assessment. The tribunal will consider comparable rents for similar properties in your area when making their determination.

Victoria Rent Increase Rules

In Victoria, rent can be increased once every 12 months for most tenancies. A landlord must give at least 60 days written notice of the proposed increase. For a fixed term lease, the rent can only be increased if the rental agreement specifically provides for it.

Victoria has introduced rent increase caps that limit how much a landlord can increase the rent. The maximum increase is generally tied to the consumer price index. If the tenant disagrees with the rent increase, they can apply to the Victorian Civil and Administrative Tribunal for a review of the new rent.

Queensland Rent Increase Rules

In Queensland, the rules apply differently depending on the type of agreement. For a periodic agreement, rent can be increased once every 12 months with at least 60 days notice. For a fixed term agreement, the rent can only be increased during the fixed term if the rental agreement includes a term allowing the increase and states the amount of the new rent or how it will be calculated.

A tenant who considers the rent increase excessive can apply to the Queensland Civil and Administrative Tribunal for a review. The tribunal will assess comparable rents and the condition of the property when reviewing the proposed increase.

South Australia Rent Increase Rules

In South Australia, rent can be increased once every 12 months for most tenancies. The landlord must provide at least 60 days written notice. For a fixed term lease, the rent can only be increased during the term if the tenancy agreement provides for it and specifies the increased rent or how it will be calculated as a fixed dollar amount.

If the tenant believes the rent increase is excessive, they can apply to the South Australian Civil and Administrative Tribunal or the Magistrates Court for a determination. The tribunal considers market rent for similar properties and the amenities provided.

Western Australia Rent Increase Rules

In Western Australia, a landlord can increase the rent once every six months for periodic agreements, with at least 60 days written notice. For a fixed term lease, rent can only be increased if the written agreement allows for it. Different rules apply for social housing tenancies.

If a tenant considers the proposed increase excessive, they can apply to the Magistrates Court for a rent assessment order. The court will consider comparable rents for similar properties in the area and the condition of the property.

Tasmania, ACT, and Northern Territory

In Tasmania, rent can be increased once every 12 months with at least 60 days notice for most tenancies. In the ACT, a landlord must give at least eight weeks notice, and rent can only be increased once every 12 months. In the Northern Territory, at least 30 days notice is required, and rent can be increased once every six months.

For all states and territories, the rent increase notice must be in writing and specify the new rent amount and the start date the increased rent takes effect. Different rules apply for social housing in each jurisdiction.

Fixed Term Lease vs Periodic Agreement: How Rent Can Be Increased

Whether your tenant is on a fixed term lease or a periodic agreement significantly affects how and when you can increase the rent. Understanding the difference is essential for every landlord.

Rent Increases During a Fixed Term Agreement

During a fixed term agreement, rent can only be increased if the written lease specifically allows for it. The fixed term lease must state the amount of the new rent or how the increase will be calculated. If your fixed term agreement does not include a rent increase clause, you cannot increase the rent until the fixed term ends.

Many landlords include a rent increase clause in their fixed term lease that specifies a fixed dollar amount increase or a percentage increase tied to the consumer price index. This ensures the rent can be increased during the fixed term without needing to negotiate a new agreement with your existing tenant.

When a fixed term agreement ends and the tenant continues on a new fixed term agreement, the landlord can set a new rent amount in the new lease. This is often the most straightforward time to adjust rent to market rate, as you are essentially negotiating a new agreement.

Rent Increases on Periodic Agreements

For periodic agreements, the landlord can increase the rent by providing the required written notice. The notice period is typically 60 days for most tenancies, though this varies by state. The tenant does not need to agree to the increase, but they can dispute it through the relevant tribunal if they believe it is excessive.

Periodic agreements give the landlord more flexibility to adjust rent to the current market rate. However, the landlord must still comply with the minimum notice period and cannot increase the rent more frequently than the rules allow for most tenancies.

How Much Notice Do You Need to Give for a Rent Increase?

The amount of notice required before a rent increase takes effect depends on your state and the type of tenancy agreement. For most tenancies across Australia, a landlord must provide at least 60 days notice in writing.

The written notice must specify the amount of the new rent and when the increase takes effect. Using a rent increase form or the standard form required by your state ensures you meet all legal requirements. Your property manager can handle the rent increase notice process on your behalf.

If you do not provide sufficient notice, the rent increase is not valid, and your tenant can continue paying the existing rent. Always check how much notice is required in your state before serving the notice to your tenant.

Can a Tenant Dispute a Rent Increase?

Yes, a tenant can dispute a rent increase if they believe the new rent is excessive compared to market rent for similar properties. Each state has its own process for disputing a rent increase, usually through the relevant civil and administrative tribunal or Magistrates Court.

At a tribunal hearing, the tribunal will consider the asking rent for comparable properties, the condition and amenities provided at the property, and any other relevant factors. If the tribunal finds the rent increase excessive, they can set a different amount of increased rent.

To protect yourself as a landlord, document the comparable rents for similar properties in your area. Having evidence of market rent from a property manager or from online listings supports your proposed increase at a rent assessment.

Strategies for Increasing Rent Without Losing a Good Tenant

A good tenant who pays rent on time, maintains the property, and causes no issues is extremely valuable. Losing a good tenant over an aggressive rent increase often costs more than the additional rent would generate, once you factor in vacancy periods, advertising costs, and letting fees.

Gradual Increases Rather Than Large Jumps

If your rent is significantly below market rent, consider implementing gradual increases rather than one large increase. Increasing the rent by a moderate amount each year keeps your existing tenant happy while progressively moving the rent closer to market rate. A good tenant is more likely to accept a smaller, regular rent increase.

Communicate Early and Clearly

Give your tenant or their property manager as much notice as possible about the rent increase, even more than the minimum required. Explain why you are increasing the rent, referencing market rent for similar properties. A current tenant who understands the reasoning behind the increase is less likely to dispute it or give their own notice to vacate.

Time Your Increase Strategically

Consider the rental market conditions when timing your rent increase. If vacancy rates are low and demand is high, a rent increase is more likely to be accepted because the tenant knows finding a comparable property at a better deal will be difficult. If the market is soft, a more modest increase may be appropriate.

Offer Value to Justify More Rent

Consider making improvements to the property before increasing the rent. Even minor upgrades can justify asking for more rent and make the tenant feel they are getting value for the increased rent. This approach also helps if the tenant applies for a rent assessment, as the tribunal considers the amenities provided.

Social Housing Rent Increase Rules

Different rules apply for social housing tenancies. In social housing, the rent is generally calculated based on the tenant financial situation rather than market rent. Rent in social housing is typically set at a percentage of household income, and different rules apply regarding how and when rent can be increased.

Social housing tenants may be eligible for a rent rebate based on their financial situation. The rent rebate reduces the amount of rent the tenant must pay. Social housing providers must follow specific rules about rent increases that differ from private rental market rules.

If you are a landlord in the private rental market, the social housing rules do not apply to your tenancy agreement. However, understanding that different rules apply helps avoid confusion when researching rent increase legislation.

When Did the Tenancy Start and When Was the Last Rent Increase?

Before serving a rent increase notice, check when the tenancy started and when the last rent increase occurred. For most tenancies, rent can only be increased once every 12 months from the date the tenancy started or the date of the last increase, whichever is later.

If you have a new tenant on a new lease, the rent is set at the start of the new agreement and the 12-month clock starts from that start date. For an existing tenant whose tenancy started years ago, check the date of the last rent increase to ensure you comply with the minimum period between increases.

Using a Property Manager for Rent Increases

A property manager handles the entire rent increase process, from conducting a market rent appraisal to serving the rent increase notice and managing any tenant queries. Using a property manager ensures the correct rent increase form is used, the right amount of notice is given, and the process complies with the rules that apply in your state.

For landlords with investment properties across multiple states, a property manager is particularly valuable because different rules apply in each jurisdiction. They understand the local market and can advise on how much to increase rent to attract or retain a good tenant.

How PropBoss Helps Landlords Manage Rent Increases

PropBoss helps Australian landlords track their lease end dates, monitor market rent for their investment properties, and manage the rent increase process. With automated reminders before your lease or agreement is due for renewal, you never miss the opportunity to review and adjust your rent.

Whether you are managing a single rental property or a portfolio of investment properties, PropBoss keeps all your tenancy agreement details, rent increase history, and lease documents in one place. This makes it easy to track when rent was last increased, how much notice is required, and what the current market rate is for your property.

Also read our property management fees guide.

Frequently Asked Questions About Rent Increases

How Often Can a Landlord Increase Rent?

For most tenancies in Australia, rent can be increased once every 12 months. Some states allow increases every six months for periodic agreements. The rules apply differently for fixed term agreements, where the lease must specifically allow for a rent increase.

What Is the Maximum Rent Increase Allowed?

Most Australian states do not impose a maximum increase cap, except Victoria where increases may be limited to the consumer price index. The rent must not be excessive compared to market rent for similar properties. If a tenant disputes the increase, the relevant tribunal will assess whether the new rent is reasonable.

Can I Increase Rent Mid-Lease?

Rent can only be increased mid tenancy on a fixed term lease if the written agreement specifically allows for it and states the new rent or how the increase will be calculated. If the agreement is silent on rent increases, you must wait until the end date of the fixed term before increasing the rent under a new lease or new agreement.

What Happens If My Tenant Refuses the Rent Increase?

A tenant cannot simply refuse a valid rent increase. If the correct notice has been given, the tenant must pay the new rent from the date specified in the notice. However, the tenant can apply to the tribunal for a review if they believe the increase is excessive. The tenant may also choose to give their own notice and end the tenancy rather than pay the increased rent.

Rents across Australia rose 8.3% nationally for the year to January 2024, indicating a significant market trend that landlords should consider when determining rent increases.

In most states, there are no set rules regarding the maximum amount by which rent can be increased each year, but landlords must provide information on how the increase is calculated.

In Victoria, as of November 2025, the minimum notice period for landlords to issue a rent increase notice will change from 60 to 90 days.

In the Australian Capital Territory, landlords must provide tenants with eight weeks' notice before a rent increase can occur.

Landlords often opt for smaller, incremental increases to retain good tenants, proposing a compromise during lease negotiations.

The Consumer Price Index (CPI) is a common benchmark for ensuring rent keeps pace with the cost of living.

Increasing land taxes, council rates, insurance, and interest rates on mortgages are common drivers for adjusting rent.

For leases under two years, rent generally cannot be increased mid-term unless a specific clause and calculation method were included in the original signed agreement.

In the ACT, rent increases are restricted to a prescribed amount, which is 110% of the percentage increase in the Canberra CPI for rents.

In the Australian Capital Territory, rent cannot be increased during a fixed-term lease unless the lease specifies the amount or method of increase, and for periodic agreements, rent can only be increased once every 12 months.

In New South Wales, for fixed-term leases of less than two years, rent cannot be increased during the fixed term unless specified in the lease, and for periodic agreements, rent can only be increased once every 12 months.

In Victoria, rent can only be increased once every 12 months, and landlords must provide information on how the rent increase has been calculated, although there are no laws specifying a maximum increase.

In Queensland, rent cannot be increased during the fixed term unless specified in the lease, and once in a periodic agreement, rent can be increased every six months.

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