How often should your rent actually go up?
Some owners never touch the rent because the tenant is lovely and the money arrives. Others want it moved every chance the law allows. Both instincts cost money in different ways. Here is what NSW law actually permits, what the market rewards and how we handle rent reviews across our own portfolio.
What the law allows in NSW
The rules come from the Residential Tenancies Act 2010, and they are stricter than many owners realise.
- Once every 12 months. For periodic agreements and fixed terms of two years or more, rent can only be increased once in any 12 month period.
- 60 days written notice. Every increase needs a proper written notice stating the new amount and the day it starts, served correctly. Get the notice wrong and the increase does not apply.
- Fixed terms under two years. Rent can only rise during the term if the agreement itself sets out the increase, either the amount or the method of working it out. No clause, no increase until renewal.
- Tenants can challenge an excessive increase. A tenant may apply to NCAT if they believe an increase is excessive. An increase backed by comparable market evidence rarely gets there, one plucked from the air sometimes does.
That is the legal floor. Everything after this point is judgement, which is where a manager earns their keep.
The cost of never reviewing
Skipping reviews feels generous, but the arithmetic is unkind. Let rent drift $40 a week below market and you are forgoing about $2,080 a year. Do it for three years and the gap compounds, because the next increase has to be large, and large increases are exactly the ones that strain good tenancies and end up contested.
Small and regular beats big and rare. A modest, evidence-backed adjustment at each renewal keeps the property at market without ever presenting the tenant with a shock.
Not sure how this plays out for your property? A quick call gives you a straight answer.
The cost of pushing too hard
The opposite mistake is dearer. Push a good tenant out over $25 a week and the changeover bill arrives at once: vacant days, letting costs, advertising. One vacant week on an $850 property is $850, and most changeovers cost more than a week. A reliable tenant who pays on time and cares for the place is a financial asset, and the review should price their tenancy, not just the four walls.
How we run reviews
- Every renewal gets a review. No property drifts by default. We check every tenancy against live comparable evidence before the renewal conversation.
- Evidence first. The proposed figure comes with the comparables that justify it, for the owner and for the tenant. It keeps everyone honest, including us.
- The recommendation weighs the tenant. Payment history, care of the property and length of tenancy all belong in the decision, not just the median.
- Notices are done properly. Right form, right notice period, right service. An increase that fails on paperwork is worse than no increase.
A note. This is general information for NSW, not legal or financial advice. Notice requirements and prescribed forms matter, and individual situations differ. Check current NSW Fair Trading guidance or ask us about your specific tenancy.
When did your rent last get reviewed?
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