As a tenant you have rights under the Residential Tenancies Act 1987 and Residential Tenancies Regulation 2006. This factsheet explains the law in NSW 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 the notice is posted, an extra 4 working days must be allowed for delivery.

If you have a fixed-term agreement (e.g. for 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 you do not get 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 within 30 days of receiving notice of a rent increase.

Negotiating a smaller 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 6–12 months. 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 CTTT

The CTTT is where tenants and landlords can take their disputes about rent increases. (See Factsheet 11: Consumer, Trader and Tenancy Tribunal.) When considering if a rent increase is excessive, the CTTT 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 CTTT is the market rent. To prepare a strong case, you can:

• look at similar properties in your area (at least 3), take photos, and gather evidence of the rent for the properties (through real estate agent listings or statutory declarations from the current tenants)
• refer to 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 NSW
• 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 enough evidence for the CTTT.

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

Social housing tenants

Housing NSW and the Aboriginal Housing Office do not have to give written notice of rent increases if you get a rent rebate.

You cannot challenge a change to your rent rebate in the CTTT. However, you may appeal to the Housing Appeals Committee (see Factsheet 12: Social housing).

A social housing provider can increase the rent during a fixed-term social housing tenancy agreement without special terms written into the agreement.

Contact your local Tenants Advice and Advocacy Service if you have any questions or problems with social housing rent increases or rebates.

Updated: June 2009

Further help

Tenants Advice and Advocacy Services: see www.tenants.org.au/publish/contact-us to find your local general or Aboriginal service
Tenants NSW website: see www.tenants.org.au/publish/factsheets for other factsheets and sample letters
NSW Fair Trading Information Centre: 133 220

The information in this factsheet:
• is intended as guide to the law and should not be used as a substitute for legal advice
• applies to people who live in, or are affected by, the law as it applies in New South Wales, Australia.
© Tenants' Union of NSW.