Can a Landlord Increase Rent in NSW? The Rules for 2026
- Posted by Future Nexus Legend Real Estate in Landlord Guides
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Can a landlord increase rent in NSW? Yes, but only within clear rules. NSW tightened them in recent years, and a rent increase that ignores them is not valid, which means your tenant does not have to pay it. This guide explains how often you can increase the rent, how much notice you must give, how to write the notice, and how to set an increase your tenant is likely to accept.
How often can a landlord increase rent in NSW?
Since 31 October 2024, rent can be increased no more than once every 12 months for all residential tenancies in NSW, whether the lease is fixed-term or periodic (month to month). You also cannot increase the rent within the first 12 months of a tenancy.
The 12 months is counted from the date the last increase took effect, not from the date you sent the notice. If the rent last went up on 1 March, the next increase cannot take effect before 1 March the following year.
How much notice must a landlord give?
You must give the tenant at least 60 days written notice before the new rent starts. A written notice can be sent by email. If you post the notice, allow extra days for delivery so the full 60 days is still met.
A valid notice must:
- state the new amount of rent, not just the amount of the increase
- state the date the new rent starts
- be signed, dated and properly addressed to the tenant
You can write your own notice or use the notice of rent increase form published by NSW Fair Trading.
Can rent be increased during a fixed-term lease?
Only if the lease allows it. For fixed terms of less than two years, the agreement must set out the increased rent or how it will be calculated, and the 12-month and 60-day rules still apply to every lease. Vague wording such as “in line with the market” is not enough. If the lease is silent, you will need to wait until the fixed term ends, or agree a new lease with the tenant.
Is there a limit on how much rent can increase?
NSW has no fixed cap on the amount of a rent increase. However, a tenant can apply to the NSW Civil and Administrative Tribunal (NCAT) if they believe an increase is excessive. The Tribunal looks at things like rents for similar properties nearby, the condition of the property, and how much the rent has changed recently. A tenant generally has 30 days from receiving the notice to apply.
In practice, the best protection is evidence. Before you set a new rent, compare recent leases for similar properties in your suburb, and keep a copy of that comparison with your records.
| Rule | What it means for landlords |
|---|---|
| Frequency | Once every 12 months, for fixed-term and periodic leases |
| First year | No increase in the first 12 months of a tenancy |
| Notice | At least 60 days, in writing |
| Notice content | New rent amount, start date, signed and dated |
| Amount | No cap, but tenants can challenge an excessive increase at NCAT |
What happens if the notice is wrong?
If the notice is too short, not in writing or missing key details, the increase is invalid and the tenant can keep paying the old rent. If a tenant pays an invalid increase, they can apply to NCAT to have the extra amount repaid. Getting the paperwork right the first time protects both your income and your relationship with a good tenant.
Can I end a tenancy if the tenant won’t accept the increase?
Not simply because of the increase. Since 19 May 2025, NSW landlords need a reasonable ground to end a tenancy, including at the end of a fixed term, and “the tenant didn’t like the new rent” is not one of them. That makes it even more important to set a fair, well-supported increase that a good tenant will accept.
How to set a rent increase tenants accept
- Check the market first. Look at what similar properties in your suburb have leased for in the last few months, not what they are advertised at.
- Consider the cost of vacancy. A few weeks without a tenant can wipe out a whole year of a small increase.
- Keep the property in good condition. Tenants are more willing to accept an increase when repairs are handled promptly.
- Explain the change. A short, polite note with the notice goes a long way.
Let us handle rent reviews for you
At Future Nexus Legend Real Estate, rent reviews are included in our fixed fee property management. We check the local market, recommend a fair new rent, prepare a compliant notice and manage the conversation with your tenant. Our fee is one fixed monthly amount, from $69 a month ex GST, so it doesn’t go up when your rent does. Not sure what your property should be earning? Get a free rental appraisal.
Frequently asked questions
Can a landlord increase rent every 6 months in NSW?
No. Since 31 October 2024, rent can only be increased once every 12 months for all NSW residential tenancies.
Can a landlord increase rent when renewing a lease?
Yes, a new lease can start at a higher rent, but the 12-month rule still applies. The new rent cannot take effect less than 12 months after the last increase.
Does a rent increase notice have to be on a form?
No. You can write your own notice as long as it includes the new rent, the start date, and is signed, dated and addressed to the tenant. NSW Fair Trading also publishes a form you can use.
Need help with your rental property?
Future Nexus Legend Real Estate manages rental properties across Western and Northern Sydney, including Parramatta, Blacktown, Norwest and Rouse Hill. Every property is managed for one fixed fee from $69 a month + GST, with leasing, inspections, repairs and rent collection included. Book a free rental appraisal or see how our property management works.
This article is general information about NSW rules as at November 2026, not legal advice. Always check the latest rules with NSW Fair Trading.
