What is a rent review clause and is it enforceable in New South Wales?

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Yes, a rent review clause is enforceable in New South Wales. It is a specific term in a lease agreement outlining when and how rent will increase. For fixed-term agreements of less than two years, landlords can only increase rent during the term if this clause explicitly details the exact amount or calculation method for the increase.

Residential Tenancies Act 2010 (NSW) - Section 42
Last UpdatedApril 30, 2026

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How it works in practice

What is a Rent Review Clause?

A rent review clause is a legally binding provision written into your residential tenancy agreement. It allows the landlord to increase the rent while you are still within the fixed term of your lease. It must be clear and specific to be valid.

Enforceability in NSW

In New South Wales, the enforceability of these clauses depends heavily on the length of your lease. If you are on a fixed-term agreement of less than two years, the landlord cannot increase your rent during that term unless a rent review clause is included. This clause must explicitly state either the exact amount of the increase or the precise mathematical method used to calculate it.

Notice Requirements

Even if a valid rent review clause is included in your agreement, the landlord cannot simply start charging more. They are still legally required to give you at least 60 days' written notice before the rent increase takes effect. This ensures you have adequate time to prepare or dispute the increase if it does not match the agreed-upon calculation.

Important exceptions

For fixed-term agreements of two years or more, rent can be increased once every 12 months without needing a specific calculation method written into the lease, provided 60 days' written notice is given.

Additionally, if you are on a periodic (rolling) agreement, a rent review clause is not necessary for a rent increase. The landlord simply needs to provide 60 days' written notice, and they are legally limited to imposing only one rent increase within any 12-month period. Social housing providers also have different specific rules regarding rent calculations and review processes.

What you should do now

  1. Read your tenancy agreement carefully to see if a specific rent review clause is included.

  2. Check the length of your fixed term to understand which specific rent increase rules apply to you.

  3. Verify that the proposed rent increase matches the exact amount or calculation method stated in your lease.

  4. Confirm that your landlord has provided the legally required minimum of 60 days' written notice before the increase.

  5. Contact NSW Fair Trading or the Tenants' Union of NSW if you believe the rent increase is invalid.

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