As a tenant you have rights under the Residential Tenancies Act 1987 and Residential Tenancies Regulation 2006. This factsheet explains the law in New South Wales about how rent can be increased.

Notice of a rent increase

If you have a continuing residential tenancy agreement (that is, an agreement with no fixed term, or where the fixed term has run out), the landlord/agent must give you at least 60 days written notice of a rent increase. The notice must include:

• the amount of the increased rent
• the date from which you have to pay the increase.

If notice is posted, an extra four working days must be allowed for this.

If you have a fixed-term agreement (e.g. 12 months) the rent cannot be increased during the fixed term, unless it says so in your agreement. Even then it can only be increased if the agreement states the amount of the increase or the method for calculating the increase. A separate 60 days written notice must also be given to you.

If you sign a new agreement at an increased rent, the new rent cannot be enforced unless you have been given 60 days written notice of the increase. The rest of the new agreement will remain valid.

If your landlord does not give you 60 days notice

You do not have to pay the increase. If the landlord/agent asks why you are not paying the increased rent, point out that their notice was invalid. They must start again and give you the correct notice.

If you think the rent increase is too much

You can:

• ask your landlord to lower or withdraw the increase
• apply to the Consumer, Trader and Tenancy Tribunal (CTTT) for an order that the rent is excessive. You must apply to the tribunal within 30 days of receiving notice of a rent increase.

Negotiating a lower rent increase

First, check that you have been given correct notice of the increase (see above).

Contact the landlord/agent and ask for a face-to-face meeting. Explain that you are a good tenant and that you want to stay but will not be able to if the rent goes up.

If this does not work, you could offer to pay a little extra, or to pay the increase gradually over a 6–12 month period. If the landlord/agent seems interested, put a proposal in writing.

While negotiating, you should apply to the CTTT within the 30-day time limit just in case you cannot come to an agreement.

Challenging an increase in the Consumer, Trader and Tenancy Tribunal

The tribunal is where tenants and landlords can take their disputes, including disputes about rent increases. (See Factsheet 11: Consumer, Trader and Tenancy Tribunal.)

When considering if a rent increase is excessive, the tribunal will consider:

• rents for similar premises in a similar area ('market rent')
• the value of the premises
• the cost of any services provided by the landlord or the tenant under the agreement
• the value and nature of any fittings, appliances or other goods and services provided with the premises
• the state of repair and general condition of the premises
• any work done to the premises by the tenant with the consent of the landlord
• any other relevant matter.

While all these factors are important, the main consideration for the tribunal is the market rent for similar premises.
To prepare a strong case, you can:

• look at similar properties in your area (at least three), take photos, and gather evidence of the rent for the properties (through real estate agent listings or statutory declarations from the current tenants)
• get the latest Rent and Sales Report from the Housing NSW website (www.housing.nsw.gov.au), which has information about average rents in every local government area in New South Wales
• make a list of repairs done by the landlord (if any) and all other rent increases over the time that you lived there
• gather receipts for any work you have had done to the premises that the landlord has agreed to
  
• take photos showing the condition of the property
• contact your local council and local water board to find out if council and water rates have increased over the last few years – get this in writing if possible.

Newspaper clippings advertising similar premises will not be sufficient evidence for the tribunal.

For more advice about preparing a rent increase case, contact your local Tenants Advice and Advocacy Service.

Social housing tenants

Social housing providers (such as Housing NSW) do not have to give 60 days notice of a rent increase, but they must still give notice in writing.

If you get a rent rebate can not apply to the CTTT against a change in your rebated rent.

Updated: June 2008

Further help

Tenants NSW website: www.tenants.org.au
Tenants Hotline: 02 8117 3750 or 1800 251 101
Tenants Advice and Advocacy Services: see the Tenants NSW website or call the Tenants Hotline to find your local general or Aboriginal service Renting Services (NSW Office of Fair Trading): 133 220

Other factsheets

This is one of a series of factsheets on tenancy issues. Other factsheets are available from www.tenants.org.au/publish/factsheets/ or your local Tenants Advice and Advocacy Service.