{"id":135863,"date":"2025-02-28T11:30:51","date_gmt":"2025-02-28T00:30:51","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=135863"},"modified":"2025-02-28T08:51:25","modified_gmt":"2025-02-27T21:51:25","slug":"how-much-and-how-often-can-i-increase-the-rent-of-my-investment-property","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/how-much-and-how-often-can-i-increase-the-rent-of-my-investment-property\/","title":{"rendered":"How much and how often can I increase the rent of my investment property?"},"content":{"rendered":"

We all know that rents are skyrocketing around Australia.<\/p>\n

So a question every landlord seems to be asking themselves at present is:<\/p>\n

How often, and by how much, can I increase the <\/em>rent on my investment property<\/em><\/a> or properties?<\/em><\/p><\/blockquote>\n

There are actually two parts to the answer \u2013 how often you can increase the rent<\/a>, and how often you should.<\/p>\n

\"Rent<\/p>\n

On one hand, there are legal limits you\u2019ll need to be aware of, and on the other hand, you need to use your market knowledge and common sense to ensure planned increases are in line with local medians and supply.<\/p>\n

And, as a property investor, you also need to avoid lengthy periods of vacancy or losing your reliable tenant<\/a>.<\/p>\n

It sure is a minefield, and there is no \u201cone size fits all\u201d answer \u2013 but the insights below should help guide you to make the best decision.<\/p>\n

How much can the rent be increased?<\/span><\/h2>\n

In most states, there isn\u2019t legislation in place to regulate how much rent can be increased, so any price hike is generally determined by what is \u2018reasonable\u2019.<\/p>\n

<\/div>\n

Unfortunately, there also isn\u2019t a nationwide definition of a \u201creasonable\u201d rent increase, so prices are generally influenced by local supply and demand.<\/p>\n

Rental properties exist within the context of their local market, which will have a median rent being achieved for comparable properties.<\/p>\n

When there is more demand than supply, such as in the current rental market, landlords have more power when it comes to rent negotiations.<\/p>\n

And when there is more supply and less demand the opposite rings true, with renters holding all the power, as happened a few years ago.<\/p>\n

But in the extremely low vacancy rate environment we\u2019re experiencing landlords are increasing their rents, some for the first time in many years.<\/p>\n

However, in all states and territories, if tenants find the proposed rental increase unreasonable they can challenge it with the local tribunal where a state government inspector will assess its fairness.<\/p>\n

\"Sad<\/p>\n

How often can a landlord increase the rent?<\/span><\/h2>\n

How often a landlord can increase rent depends on what type of tenancy agreement you have - fixed or periodic - and also what state you\u2019re in.<\/p>\n

Generally speaking, it can\u2019t be done during a fixed tenancy, unless an increase is already written into your tenancy agreement.<\/p>\n

Here\u2019s a breakdown of the rules in each Aussie state and territory:<\/p>\n

New South Wales<\/h3>\n

In New South Wales<\/a>, unless it is specifically written into your agreement, rent can only be increased once every 12 months<\/strong> and the landlord needs to provide a 60-day' notice<\/strong>.<\/p>\n

If the tenant is on a fixed-term lease, this can only occur at the end of the lease.<\/p>\n

There is no cap on how much rent can be increased in New South Wales.<\/p>\n

Victoria<\/h3>\n

In Victoria<\/a>, unless it is specifically written into your agreement, rent on fixed-term tenancies of less than 5 years can only be increased at the end of the agreement<\/strong>.<\/p>\n

If it is written into the agreement, rent increases can occur every 6 months <\/strong>for agreements that started before 19 June 2019, or every 12 months <\/strong>for agreements that started after this date and require a 60-day\u2019 notice<\/strong>.<\/p>\n

Rent on periodic tenancies or fixed-term tenancies of 5 years or more can only be increased once every 12 months<\/strong> and require a 60-day\u2019 notice<\/strong>.<\/p>\n

There is no cap on how much rent can be increased in Victoria but you need to be able to show how the rise has been calculated.<\/p>\n

\"Brisbane2\"<\/p>\n

Queensland<\/h3>\n

In Queensland<\/a>, changes to limit rent increase frequency for periodic tenancies to once every 12 months came<\/strong> into effect for\u00a0all new and existing tenancies on 1 July 2023. nce an increase and a 60-day\u2019 notice<\/strong> has been issued.<\/p>\n

There is no cap on how much rent can be increased in Queensland.<\/p>\n

Western Australia<\/h3>\n

In Western Australia<\/a>, rents cannot be increased more than every 12 months<\/strong> with a 60-day\u2019 notice<\/strong>.<\/p>\n

You can find out the details here<\/a>.<\/p>\n

For fixed-term agreements, rent cannot be increased unless it is written into the agreement.<\/p>\n

There is no cap on how much rent can be increased in Western Australia.<\/p>\n

South Australia<\/h3>\n

In South Australia<\/a> rent for periodic tenancies can be increased once every 12 months<\/strong> and requires a 60-day\u2019\u00a0notice<\/strong>.<\/p>\n

Rent for fixed-term agreements cannot be increased unless it is specifically written into the agreement, with an explanation for how the increase has been calculated.<\/p>\n

Rent can be increased with an offer for a lease extension, provided it\u2019s been 12 months<\/strong> since the agreement started, or the rent was last increased.<\/p>\n

There is no cap on how much rent can be increased in South Australia.<\/p>\n

\"Canberra\"<\/p>\n

ACT<\/h3>\n

In the ACT<\/a>, unless it is specifically written into your agreement with a calculation, rent can only be increased once every 12 months<\/strong> and the landlord needs to provide an 8-week' notice<\/strong>.<\/p>\n

If the tenant is on a fixed-term lease, this can only occur at the end of the lease with an 8-week\u2019 notice<\/strong>.<\/p>\n

The ACT is the only state or territory in Australia which puts a cap on rent increases<\/strong> of up to 10%<\/strong> above the Consumer Price Index (CPI) for Canberra.<\/p>\n

Rent increases of more than 10% above Canberra\u2019s CPI will be considered excessive and can be refused by the ACT Civil & Administrative Tribunal (ACAT).<\/p>\n

Tasmania<\/h3>\n

In Tasmania<\/a>, unless it is specifically written into your agreement, rent can only be increased once every 12 months<\/strong> and requires a 60-day\u2019 notice<\/strong>.<\/p>\n

If the tenant is on a fixed-term lease, this can only occur at the end of the lease.<\/p>\n

There is no cap on how much rent can be increased in Tasmania.<\/p>\n

Northern Territory<\/h3>\n

In the Northern Territory<\/a>, unless it is specifically written into your agreement with a calculation, rent can only be increased once every 6 months<\/strong> and requires a 30-day\u2019 notice<\/strong>.<\/p>\n

There is no cap on how much rent can be increased in the Northern Territory.<\/p>\n

\"Notice\"<\/p>\n

How to issue a notice of increase in rent<\/span><\/h2>\n

If you decide to give notice of a rent increase but still want the current tenant to stay on, you must advise them in writing with at least a 60-day' notice.<\/p>\n

In some states, there is an official form that you must complete in order to provide the tenant with the required a 60-day' notice of a rent increase, and tenants have the right to seek a rental assessment from the relevant governing authority, such as the Director of Consumer Affairs Victoria if they feel the increase is unfair or excessive.<\/p>\n

They must do so in writing within 30 days of receiving the notice for a rent increase and it will then be up to the Tribunal as to whether or not the landlord has the right<\/a> to put up the rent.<\/p>\n

If you are renting out a property on a periodic basis, there is no need to give a lease renewal notice to the tenant.<\/p>\n

If you are renting your investment property out under a fixed-term agreement and want to move to another fixed-term lease with a rent increase then you\u2019ll need to organise and send the tenant a letter of notice to increase the rent AND a lease renewal notice at least 60-days before the lease is due to end.<\/p>\n

This can be done via email or by personally delivering the letter.<\/p>\n

At this point, a landlord can also notify the tenant of any proposed changes to the terms of the lease.<\/p>\n

For example, if the landlord is proposing to increase the rent, or to change some other terms of the lease, these changes can be summarised within this letter.<\/p>\n

It\u2019s worth noting that the new agreement can include different terms and conditions from the first agreement.<\/p>\n

The lease renewal letter must;<\/p>\n