How much can your landlord increase your rent by and can you negotiate?

Rent increases can be a fact of life for most tenants but it pays to know what your landlord can and can’t do.

With the rental market competition getting worse in many areas around the country it’s now more important than ever to know your rights as a tenant.

But how much can a landlord increase the rent by exactly? And when can they do it? Do tenants have a right to negotiate or complain? Here’s everything you need to know.

What’s a reasonable rent increase?

How often can it be raised?

How much notice is required?

Can rent increases be backdated?

Can tenants negotiate rent increases?

What if you feel the rent increase is unfair or unreasonable?

What’s a reasonable rent increase?

While there isn’t a nationwide definition of a “reasonable” rent increase, they’re generally influenced by local supply and demand as well as the availability of a substitute.

Rental properties exist within the context of their local market, which will have a median rent amount for comparable properties.

For example, for those looking to rent a three-bedroom house in Northcote, Victoria, they’d be able to look at the Northcote suburb profile page and compare the advertised price for any property against the median rental amount of $724.

For those tenants who are already on a lease they can also look up their suburb profile page and see how their situation compares to what the current market rate is and whether the trend is going up or down.

This can give an insight into the likelihood of your landlord asking for more money each week. ie, if your rent is considerably lower than the median rent then you may be in the position of being asked for more.

For those tenants who have already been asked to pay more, they can compare the new amount to the median to see whether the new amount is reasonable compared with the local market.

When there is more demand than supply, landlords have more power when it comes to rent negotiations.

The availability – or not – of an exact comparison also has a big influence; that is to what extent can a tenant find an equivalent, suitable property? If there aren’t many options, again the landlord has more negotiation power.

Lisa Adaway, a property manager at Queensland-based Hugo Alexander Property Group, said what is deemed “reasonable” can change case-by-case. It’s influenced by a number of factors.

“Typically in Queensland, over the past couple of years, if a property is going to see an increase, we would normally see an increase of between 2% and 10%,” she said.

“We have had an increase on nearly every property in our portfolio over the past 12 months. The largest increase we have had was 25%.”

How often can a landlord increase your rent in your state?

The regularity that a landlord can increase rent depends on whether you’re on a tenancy agreement or not – and the rules can change depending on which state you’re in.

Generally speaking, it can’t be done during the tenancy, unless it’s by agreement or the lease allows for it upfront. In other words, it needs to be written into your tenancy agreement.

Jump to your state:

NSW

Victoria

Queensland

Western Australia

South Australia

ACT

Tasmania

Northern Territory

Most states now have rules around the minimum period within which an increase can occur and the rent amount stated on the lease agreement usually remains the same for the life of the lease, whether that’s six or 12 months.

NSW

Periodic tenancies: Rent can only be increased every 12-months and landlords need to provide 60 days notice.

Fixed-term tenancies: Agreements less than 2yrs will need to have any increases stated upfront.

For agreements lasting more than two years the landlord will need to provide 60-days notice of the increase, which can only occur once every 12-months.

For more information see the NSW Fairtrading website.

Victoria

Periodic tenancies:

Rent can only be increased every 12-months and landlords need to provide 60 days notice.

Fixed-term tenancies

Agreements less than five years will need to have any increases stated upfront and then can only occur every six months.

For agreements lasting more than five years the rent can only increase every 12-months and 60-days notice is to be provided.

Agreements pre-dating 19 July, 2019: Rents can be increased every six months (provided this is stated upfront).

Agreements made after 19 July, 2019: Rents can be increased every 12 months (provided this is stated upfront).

For more information see the Victorian Consumer Affairs website.

Queensland

Periodic tenancies

Rents can be increased every six months as long as the landlord gives 60-days notice.

Fixed term tenancies

Rents cannot be increased within a fixed-term agreement unless stated upfront.

For more information see the QLD government website.

Western Australia

Periodic tenancies

Rents can be increased every six months as long as the landlord gives 60-days notice.

Fixed term tenancies

Rents cannot be increased within a fixed-term agreement unless stated upfront.

For more information see the WA Department of Housing website.

South Australia

Periodic tenancies

Rents can be increased every six months as long as the landlord gives 60-days notice.

Fixed term tenancies

Rents cannot be increased within a fixed-term agreement unless stated upfront.

For more information see the SA Government website.

ACT

Rents can only go up, when allowable, by a ‘prescribed amount’, which is 10% of Canberra’s Consumer Price Index.

Periodic tenancies

Rents can be increased every 12 months as long as the landlord gives 60-days notice.

Fixed term tenancies

Rents cannot be increased within a fixed-term agreement unless stated upfront.

For more information see the ACAT website.

Tasmania

Rents can only go up if the lease states that it will upfront and the landlord provides 60-days warning.

In most cases rents cannot be raised during a tenancy agreement.

For more information see the Tasmanian government website.

Northern Territory

Rents cant be increased provided landlord and tenant agree and it has been stated in the lease that rent increases can occur.

Rents can be increased every six months as long as the landlord gives 30-days notice.

For more information see the NT Consumer Affairs website.

The amount of rent usually lasts the entire length of the lease agreement. Picture: realestate.com.au

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How much notice is required?

Kasey McDonald, the head of leasing at property management agency :Different said when it comes to notice, the rules also differ state-to-state.

In Victoria, for example, if the agreement allows for an increase, the landlord has to give 60 days’ notice in writing, she said. The rules in New South Wales and Queensland are similar.

Can a landlord backdate a rent increase?

No, a rent increase cannot be backdated, Ms McDonald said. That’s because in every state, the landlord has to provide notice of some kind.

How to negotiate rental increases

Tenants can go into negotiations with their landlord when a rent increase is proposed, but they should be prepared, Ms McDonald said.

Here are some steps to take during a rental increase negotiation according to Ms McDonald:

• Keep abreast of what is happening in your local rental market
• Provide links to properties that are currently advertised to justify why you believe the rent increase suggested might not be fair
• Weigh up the pros and cons of potentially moving house if you’re not happy to pay more each week in rent
• If the landlord persists with the request then consider negotiating on price, for example, the landlord may have requested a rise of $20 per week, but you might be happy to pay $10 per week.
• Consider other ways to compromise, like offering to sign a longer lease at the existing rent
• Always have evidence ready, remain calm and be polite when approaching and negotiating with your property manager

It’s important for tenants to keep an eye on rental prices within their market. Picture: realestate.com.au/rent

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What can you do if you think your rent increase isn’t reasonable?

No one wants to have to pay more money for something they already get, but if you’re convinced the request is unfair then you should speak to your landlord or property manager.

If you don’t have luck pushing back on the request there are official channels open to tenants too, Dr Mardiasmo said, including state government civil and administrative tribunal bodies.

In determining whether or not the increased cost is unfair these bodies look at the range of market rents usually charged for comparable properties; the difference between the proposed and current rent; the state of repair of the property; term of the tenancy and the period since the last rent increase, if any.

For more information on civil and administrative tribunals, visit the relevant one: