Rent hikes often strain the relationship between landlords or property managers and tenants. After all, few Australians - whether renters, owners, or investors - are pleased when their living costs rise, regardless of the reasons behind such increases.
Property investors, particularly those managing their properties independently, must ensure they adhere to state or territory laws when increasing rent.
If the costs of maintaining your investment have risen or its market value has appreciated, here's what you need to know about adjusting rent fairly and legally.
The following rules are correct in the state or territory indicated as of August 2024 and are subject to change.
When can a landlord increase rent in NSW?
When it comes to introducing rent increases for rental properties in New South Wales, different tenancy agreements have slightly different rules.
If the lease agreement is periodic (meaning there's no definite end date) or for a fixed term of two or more years, the rent can only be increased once every 12 months. A tenant must be given 60 days' notice of any increase to their rental costs.
If the lease agreement covers a period of two years or less, a landlord can only implement a rent increase if said increase is included within the tenancy agreement. The agreement must state when the rent will increase and by how much it will increase or how any rent increase will be calculated (e.g. a percentage increase).
If a landlord wishes to increase the rent on the expiry of a fixed-term rental agreement and sign a new lease with the same tenant, they must give that tenant 60 days' of specific notice of a rent increase. A new contract that includes a rent hike isn't sufficient notice.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 60 days' notice | Once per year |
| Fixed term of two years or more | With 60 days' notice | Once per year |
| Fixed term of less than two years | As per tenancy agreement (if rent increase term is included) | |
| No written agreement | After the first six months | |
Excessive rent increases can be reported to the NSW Civil Administrative Tribunal (NCAT).
If a tenant isn't given sufficient, written notice of a rent increase, they are not obliged to pay the higher rent.
When can a landlord increase rent in Victoria?
Whether a rent increase is allowed under Victorian law depends on the type of tenancy agreement entered into.
For fixed term tenancy agreements (for instance, a 12-month agreement), a landlord cannot increase the rent during the fixed term. That is, unless a rental increase term is included in the tenancy agreement, specifying when the rent will go up and how much by.
For periodic arrangements, landlords can only increase the rent once per year and must provide 60 days' written notice of any increase.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 60 days' notice | Once per year |
| Fixed term | As per tenancy agreement (if rent increase term is included) | Once per year, only if included in tenancy agreement |
Tenants have 30 days after a rent increase takes effect to challenge an excessive increase with the Victorian Civil and Administrative Tribunal (VCAT).
If correct notice isn't provided, a tenant might be eligible for a refund of any additional rent paid.
When can a landlord increase rent in Queensland?
Following changes to Queensland's rental laws, landlords in the Sunshine State now cannot increase the rent charged for a property more than once a year.
That's the case even if a new tenancy agreement is being entered into with new tenants. Ergo, the limitation on rent increases is now tied to the property, not the tenancy.
If a new rental agreement is being entered into and it has been 12 months or more since the rent on a property was increased, a landlord doesn't need to give a tenant any additional notice other than the new rental agreement.
In the case of periodic agreements, two months' notice must be given for a rent hike (only four weeks' notice of a rent hike must be given to tenants in rooming accommodation agreements).
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With two months' notice | Once per year |
| Fixed term | As per tenancy agreement (if rent increase term is included) | Once per year, only if included in tenancy agreement |
The Queensland Civil and Administrative Tribunal (QCAT) serves as the deciding body for disputes on excessive rents.
When can a landlord increase rent in Western Australia?
In Western Australia, landlords must give tenants 60 days' notice before a rent increase, with increases limited to once every 12 months.
If a fixed-term tenancy agreement is in place, any rent increase must be specified in the rental agreement to be legally enforceable.
Rental increases remain limited to once every 12 months, even if the tenant signs a new tenancy agreement for less than 12 months (for example, if they enter into a second six-month fixed-term agreement).
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 60 days' notice | Once per year |
| Fixed term | As per tenancy agreement (if rent increase term is included) | Once per year, only if included in tenancy agreement |
Tenants can apply to the state's Magistrates Court for the rent to be changed if they deem it excessive.
When can a landlord increase rent in South Australia?
Like those in the majority of the nation, landlords in South Australia can only increase rent once per year and typically need to give 60 days' notice of an increase.
For fixed-term agreements, the timing and details on how a rent increase will be calculated must be included in the tenancy agreement, and a rent increase cannot occur before the agreement has been in place for at least 12 months.
Tenants on periodic agreements must be given 60 days' notice of any rent increase, and no rent increase can occur until said tenants have been renting a property for at least 12 months.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 60 days' notice | Once per year |
| Fixed term | As per tenancy agreement (if rent increase term is included) | Once per year |
The South Australian Civil & Administrative Tribunal (SACAT) handles tenant issues regarding excessive rent.
When can a landlord increase rent in Tasmania?
Property owners in Tasmania must give tenants 60-days' written notice of any increase in rent and can't up the rent within the first 12 months of a tenancy agreement.
For that reason, rent can typically only be increased at the start of a tenancy agreement or on renewing or extending a tenancy agreement.
Though, if the tenancy agreement spans more than 12 months, the rent can be increased after its first year.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 60 days' notice | Once per year |
| Fixed term | With 60 days' notice | Once per year |
Tenants can file a dispute against an excessive increase with the Residential Tenancy Commissioner (RTC) within 60 days of implementation.
When can a landlord increase rent in the Northern Territory?
Those who own a rental property in the Northern Territory can't increase rent charged on said property during a fixed-term tenancy agreement, unless the rent increase is written into the tenancy agreement.
Outside of a fixed-term agreement or on the expiry or extension of one, landlords in the Northern Territory need to give tenants 30 days' notice of a rent increase and can only increase rent once every six months.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With 30 days' notice | Once every six months |
| Fixed term | As per tenancy agreement (if rent increase term is included) | Once every six months |
The Northern Territory Civil and Administrative Tribunal (NTCAT) is tasked with reviewing and taking action on any tenant complaints regarding rent increases.
When can a landlord increase rent in the ACT?
Those who own investment properties in the ACT are typically limited as to when they can increase rent and how much by.
Landlords in the ACT are required to give eight weeks' notice to tenants of any increases in rent, which can only be done once every 12 months on a periodic lease.
Under fixed-term agreements, rent hikes are not allowed unless the timing and amount is specified in the contract.
Further, rent mightn't be able to be increased by more than the prescribed amount - which is 110% of the rate of national rent inflation, as assessed by the Australian Bureau of Statistics (ABS). The ACT Government provides this handy calculator to help landlords figure out the prescribed amount they can increase rent by.
Landlords can up the rent by more than the prescribed amount if the tenant agrees. If the tenant doesn't agree, the landlord can apply to ACT Civil and Administrative Tribunal (ACAT) for a review of a proposed increase.
| Type of Agreement | Rent Can Be Increased | How Often Can Rent Be Increased |
|---|---|---|
| Periodic | With eight weeks' notice | Once every 12 months |
| Fixed term | As per tenancy agreement (if rent increase term is included) with eight weeks' notice | Once every 12 months |
Tenants who believe that they have been handed an excessive increase can apply for it to be reviewed by ACAT.
Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.34% p.a. | 6.38% p.a. | $3,108 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
6.29% p.a. | 6.20% p.a. | $3,092 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.39% p.a. | 6.53% p.a. | $3,124 | Principal & Interest | Variable | $10 | $450 | 80% | |||||||||||||
6.40% p.a. | 6.43% p.a. | $2,667 | Interest-only | Variable | $0 | $98 | 80% | |||||||||||||
6.44% p.a. | 6.50% p.a. | $3,141 | Principal & Interest | Variable | $0 | $835 | 80% | |||||||||||||
6.49% p.a. | 6.52% p.a. | $3,157 | Principal & Interest | Variable | $0 | $null | 80% | |||||||||||||
6.43% p.a. | 6.78% p.a. | $3,137 | Principal & Interest | Variable | $375 | $0 | 60% | |||||||||||||
6.54% p.a. | 6.54% p.a. | $3,174 | Principal & Interest | Variable | $0 | $0 | 60% | |||||||||||||
6.64% p.a. | 6.65% p.a. | $3,207 | Principal & Interest | Variable | $0 | $100 | 90% | |||||||||||||
6.44% p.a. | 6.44% p.a. | $3,141 | Principal & Interest | Variable | $0 | $160 | 70% | |||||||||||||
7.29% p.a. | 7.31% p.a. | $3,424 | Principal & Interest | Variable | $null | $400 | 90% | |||||||||||||
7.49% p.a. | 7.46% p.a. | $3,121 | Interest-only | Variable | $8 | $350 | 90% | |||||||||||||
7.64% p.a. | 7.96% p.a. | $3,183 | Interest-only | Variable | $0 | $0 | 90% | |||||||||||||
6.19% p.a. | 6.53% p.a. | $3,059 | Principal & Interest | Variable | $0 | $530 | 90% | 90% LVR |
| Disclosure |
Photo by Jakub Żerdzicki on Unsplash
Article originally written by Gerv Tacadena. Last updated by Brooke Cooper on 26 August 2024.
Collections: Property Investment
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