Notice of rent increase

Under section 41 of the Residential Tenancies Act 2010 a landlord must give the tenant at least 60 days' written notice of a rent increase. Rent cannot be increased within 12 months of the start of a tenancy or more than once in any 12 months (s 41(1A)). Fair Trading says these limits apply to periodic and fixed term agreements, with special rules for fixed terms of less than 2 years that began before 13 December 2024. A renewed or replaced agreement counts as the same tenancy if the landlord is the same, at least one tenant stays and the tenant occupies the premises immediately before and after (s 41(2)). The notice must specify the increased rent and the day from which it is payable (s 41(1)); Fair Trading adds that it should give the new rent, not just the amount of the increase, and be signed, dated and addressed to the tenant. Landlords can write their own notice, send an email, or use this Fair Trading form.

When you need it

• You are a landlord or agent increasing the rent on a NSW residential tenancy.
• At least 12 months have passed since the tenancy started or the rent was last increased.
• The increase is set out in the agreement: a notice is still required (s 41(5)).

1. 1

   Tenant and premises

   Write the tenants' names and the address and postcode of the premises, in black pen and block letters.

2. 2

   New rent and start date

   Insert the date the increase takes effect, at least 60 days after the notice is given, and the new rent per week or fortnight.

3. 3

   Service method

   Tick how the notice is given: in person at the premises, by post (allow 7 working days), in the tenant's letterbox in an addressed envelope, to a person apparently 16 or over at the premises, or by email to an address the tenant has specified for service of notices (s 223).

4. 4

   Sign and date

   The landlord or agent signs, writes the date the notice was delivered, posted or emailed, and gives their name and contact phone number.

• The notice is given to the tenant, not lodged with Fair Trading.
• Count the 60 days from service, and allow for postal delivery time if posting.
• If the tenant thinks the increase is excessive, they can apply to the NSW Civil and Administrative Tribunal within 30 days after the notice is given (s 44(2); Residential Tenancies Regulation 2019 cl 39(1)). The Tribunal can order a maximum rent for a period of up to 12 months (s 44(6)).

• A tenant can negotiate. If the landlord agrees to a smaller increase, the landlord can reduce or cancel it by a further written notice, which takes effect from the original date, so no new 60-day notice is needed (s 41(6)).
• Both sides can use the NSW Government's Rent Check tool to compare the proposed rent with the median for the postcode.
• A tenant on a fixed term of 2 years or more can end the agreement early without penalty during the notice period, by giving 21 days' written notice before the increase starts (s 99).
• The 12-month limits do not apply to a social housing agreement if the increase is only the result of a change in the tenant's rent rebate (Residential Tenancies Regulation 2019 cl 36B).