Can my landlord increase rent during a fixed term lease in NSW?
No, your landlord generally cannot increase the rent during a fixed-term lease in NSW unless the tenancy agreement specifically sets out the amount of the increase or the exact method of calculation. For fixed-term agreements of less than two years, the increase must be clearly written into the contract when you first sign it.
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How it works in practice
Rules for Fixed-Term Agreements
In New South Wales, the rules regarding rent increases depend largely on the length of your fixed-term lease. If you are on a fixed-term agreement that is less than two years, your landlord cannot arbitrarily increase the rent.
The only way a landlord can legally raise the rent during a short fixed-term lease is if the original tenancy agreement contains a specific clause. This clause must clearly state either the exact amount of the increase or the precise method that will be used to calculate it.
Leases of Two Years or More
If your fixed-term lease is for two years or longer, the rules change. A landlord can increase the rent during the fixed term, even if it is not written into the agreement. However, they are legally restricted to increasing the rent only once in any 12-month period.
Notice Requirements
Regardless of the lease type, your landlord must give you at least 60 days written notice before the rent increase takes effect. This notice must state the proposed new rent amount and the exact date it will commence. If you believe an increase is excessive, you have the right to apply to the NSW Civil and Administrative Tribunal (NCAT) for an assessment.
Important exceptions
There are a few notable exceptions to the standard rent increase rules in New South Wales.
If you are renting public housing, community housing, or living in Aboriginal Housing Office properties, different regulations and calculation methods may apply to your tenancy based on your income rather than market rates.
Additionally, if you mutually agree with your landlord to add new inclusions or services to the property, such as installing a new air conditioner or adding a parking space, the rent may be increased by mutual consent without waiting for the standard notice periods or fixed-term restrictions to expire.
What you should do now
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Review your current tenancy agreement to check the length of your fixed term and look for any specific clauses detailing rent increases.
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Check the written notice provided by your landlord to ensure they have given you the legally required minimum of 60 days warning.
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Verify that you have not already had a rent increase in the past 12 months, as landlords are restricted to one increase per year.
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Contact your landlord or property agent directly to negotiate the proposed rent increase if you believe it is too high for the current market.
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Apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the notice if you consider the rent increase to be excessive.
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