You may be able to increase the rent during a tenancy, but there are rules governing when an increase can occur, how often rent can be increased and how much notice must be given.
These rules vary between states and territories and can also depend on the type of tenancy agreement.
Before increasing the rent:
- Check when the rent was last increased: Most jurisdictions restrict how frequently rent can be increased.
- Check the tenancy agreement: Different rules may apply to fixed-term and periodic agreements and to increases already provided for in an agreement.
- Research the current market: Compare similar rental properties in the area when deciding on a new rent.
- Give the required notice: Rent increases generally need to be communicated formally and within the required notice period.
- Use the correct notice or form: Follow the requirements for your state or territory and clearly state the new rent and when it will take effect.
- Keep records: Retain a copy of the notice and evidence of when and how it was provided to the tenant.
Tenants may have the right to challenge a rent increase they believe is excessive or does not comply with the applicable tenancy laws.
Because the frequency, notice periods and procedures for increasing rent differ across Australia and can change, check the current requirements of the government tenancy authority for the state or territory where your property is located before issuing an increase.
For more information, see our Rent Collection and Record Keeping and Preparing a Residential Tenancy Agreement guides.