Understanding Rent Increases Under Property & Leasing Law
In Australia, rental arrangements are primarily governed by the Residential Tenancies Acts of each state and territory. These laws fall under the broader umbrella of Property & Leasing Law, setting out when and how a landlord can legally increase rent.
The key principle is fairness and transparency. A rent increase must:
The frequency of rent increases depends on the type of tenancy agreement and jurisdiction.
Fixed-term agreements: Rent generally cannot be increased unless a clear clause in the contract allows it.
Periodic agreements: Landlords can increase rent, but they must provide proper notice.
For example:
NSW: Rent increases are limited to once every 12 months for periodic agreements.
VIC: Rent increases can occur every 12 months for periodic agreements, with stricter rules around fairness.
QLD: Rent increases are limited to once every 12 months and must be justified.
WA, SA, TAS, ACT & NT: Similar rules apply, with notice requirements varying between 60 and 90 days.
Notice Periods for Rent Increases
Property & Leasing Law requires landlords to provide tenants with written notice before a rent increase takes effect. Notice periods are typically:
60 days in most states and territories (NSW, VIC, QLD, SA, ACT).
90 days in WA.
60–90 days in other regions depending on tenancy type.
Failure to provide sufficient notice can make the rent increase invalid, allowing tenants to challenge it.
What Makes a Rent Increase “Fair”?
Even if a landlord complies with the law, tenants can dispute a rent increase if it seems excessive. Factors considered by tenancy tribunals include:
Rental rates for similar properties in the area.
The property’s condition and facilities.
Recent improvements made by the landlord.
The state of the rental market.
If a tenant believes a rent increase is unreasonable, they can apply to their local tribunal, such as the NSW Civil and Administrative Tribunal (NCAT) or Victorian Civil and Administrative Tribunal (VCAT).
Can Rent Be Increased During a Fixed-Term Lease?
Generally, landlords cannot increase rent during a fixed-term lease unless the tenancy agreement includes a specific rent review clause. This clause must clearly state:
When the rent will increase.
How the new rent will be calculated (for example, a fixed percentage or CPI adjustment).
Without such a clause, rent increases during a fixed-term tenancy are not permitted.
Tenants’ Rights and Options in 2025
Tenants in Australia have several rights when facing a rent increase:
Right to notice: Tenants must receive written notice within the correct timeframe.
Right to dispute: Tenants can apply to their state tribunal if they believe the increase is excessive.
Right to transparency: Rent increase clauses in fixed-term agreements must be clear and enforceable.
Right to negotiate: In many cases, tenants can negotiate with landlords to reach a fair outcome.
Landlords’ Rights and Responsibilities
While tenants are protected, landlords also have legal rights. They are entitled to:
Receive market rent that reflects current property values.
Review rents periodically, provided they comply with notice and fairness requirements.
Defend their rent increases if challenged, by showing evidence of market trends and property costs.
However, landlords must avoid unconscionable conduct, such as dramatically increasing rent to force a tenant out.
How Tribunals Handle Rent Increase Disputes
If disputes arise, tenants and landlords may need to attend a hearing at the local tribunal. The tribunal will examine:
The validity of the notice.
The reasonableness of the increase.
Market data on comparable properties.
The tribunal can either approve the increase, reduce it, or reject it entirely.
Practical Tips for Tenants in 2025
Always check your tenancy agreement for rent review clauses.
Compare the proposed increase with similar properties in your area.
Seek advice from Fair Trading or legal experts before disputing.
Keep records of all landlord communications.
Practical Tips for Landlords in 2025
Provide written notice using the correct form and timeframe.
Base rent increases on market data, not arbitrary amounts.
Consider making property improvements before increasing rent.
Keep communication transparent to avoid disputes.
Conclusion
So, can a landlord legally increase rent in 2025? Yes—but only within the limits set by Australian Property & Leasing Law. Tenants are protected from unfair increases, while landlords retain the right to adjust rent in line with the market. Both parties benefit from understanding their rights, obligations, and the dispute resolution process.
At New South Lawyers, we specialise in Property & Leasing Law.
Whether you’re a landlord seeking to increase rent lawfully or a tenant questioning a rise in 2025, our expert team can provide tailored advice and representation.
Contact New South Lawyers today to protect your rights and ensure compliance with Australian rental laws.
