Are you an Aussie renter wondering how much can a landlord increase rent over the duration of the rental agreement as you want to avoid overpaying?

If so, note that building owners can raise the rent once every six or 12 months to an unspecified amount, but they must notify their tenants beforehand.

However, the rules vary from state to state and from contract to contract.

Keep on reading to get all the details!

How Much Can a Landlord Increase Rent?

While there’s no law that states how much can a landlord increase rent you are paying, owners must still reveal the factors they use to calculate a rent hike, such as:

That said, government authorities consider an increase of 10% to 20% (varies from state to state) over the current inflation rate or average rent rise to be unjustified.

  • Increases in the consumer price index (CPI),
  • Rises in the average state rent prices,
  • Growth of the property value,
  • Renovations that have improved the quality of living,
  • Changes in the supply and demand of rental houses and units,
  • By a fixed percentage increase,
  • By a fixed dollar amount.

Below, you can see an overview of the year-on-year and quarter-on-quarter increase in rental costs as revealed by the Domain Group’s most recent quarterly report:

source: domain.com.au

Also, the latest housing statistics show that a third of Aussies rent their homes, and with the significant hikes in renting prices—an average of 12% YOY between June 2021 and June 2022—homeowners have been getting substantial returns on their investments.

Therefore, instead of wondering how much can rent increase per year, you should consider saving up for a home deposit while renting to become a property owner instead.

On the other hand, existing proprietors should look into ways to invest in property in Australia, thus taking advantage of the current changes in the real estate market.

How Often Can Rent Increase?

So how often can a landlord increase rent in Australia?

The answer to that question depends on the type of contract you have signed and your state’s laws regarding the regularity of rent increases.

In most cases, a rent increase can legally happen if tenants are on a periodic agreement and have been properly notified in advance, or their fixed-term agreement contains a stipulation as to any rent increases and how they are calculated.

Below, we take a closer look at the rental increase laws of each state and territory.

The obligatory notice provided by landlords must typically contain the rent increase amount, how it is calculated, and the date it comes into effect.

How to Negotiate Rental Increases?

You may be able to negotiate any rental increases with your landlord. However, you will need to be prepared first. Here are some tips that will help you negotiate better:

Related reading: If you want to settle down, read our article on the best locations to purchase or rent a residence in Australia and the documents you need.

  • Inform yourself of the rental laws in your state;
  • Keep up with the prices of your local rental market;
  • Provide links to properties similar to yours but with lower rent;
  • Bargain for a lower rental price hike;
  • Offer a compromise, such as signing a longer lease at the same price.

To improve your chances of getting favourable rent terms, remain calm and polite during the negotiation process, and be ready to provide all the evidence that supports your case.

Whom to Contact After an Unfair Rent Raise?

If your negotiation attempts fail and you still believe you will be overpaying an unfair amount or that your landlord is violating the state’s rental agreement laws, you can take the matter to your state’s civil and administrative tribunal institutions.

For questions such as: “Can a landlord increase the rent?” and “How much can the landlord increase rent under these circumstances?” courts look at the following factors:

Note: Most states require tenants to contest the issue with the relevant tribunal within 30 days of receiving the rent increase notice.

  • The existing contract terms,
  • The date of the last rent increase,
  • The current property value,
  • Whether or not the landlord improved the living conditions,
  • The rent prices of similar properties in the area,
  • The rent increase in percentages,
  • Whether or not the tenant has caused any property damages,
  • Whether or not the owner has paid any maintenance fees,
  • Any other relevant considerations.

For more information on opening a rental dispute, contact your state’s tribunal website:

  • New South Wales: NSW Civil & Administrative Tribunal (NCAT)
  • Victoria: Victorian Civil & Administrative Tribunal (VCAT)
  • Queensland: Queensland Civil and Administrative Tribunal (QCAT)
  • Western Australia: State Administrative Tribunal (SAT)
  • South Australia: South Australian Civil and Administrative Tribunal (SACAT)
  • Tasmania: Tasmanian Civil and Administrative Tribunal (TASCAT)
  • Northern Territory: Northern Territory Civil and Administrative Tribunal (NTCAT)
  • Australian Capital Territory: ACT Civil & Administrative Tribunal (ACAT)

Before Picking Up the Keys to the House

Before signing a rental lease In Australia, familiarise yourself with your state’s rental laws to get answers to questions like “Can your landlord increase your rent?” and “How often and how much can they do it?”. That way, you won’t be caught off guard if and when you receive the dreaded rent increase notice, and you can act accordingly.

1. Can a landlord backdate a rent increase?

Absolutely not, as every Australian state and territory requires landlords to provide a written notice of a rent increase, without which they cannot legally enforce the price hike.

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

If you believe your landlord has unjustly increased your rent, you can either attempt to negotiate a lower price or apply for a rental dispute with your state’s tribunal body.

If you wonder how much can a landlord increase rent legally, note that state governments do not enforce any regulations on the maximum allowed rent increase, but if the matter comes to court, they will rarely approve a hike of more than 10% above the inflation rate.