Is my rent increase legal in NSW?

Test 1: the 12-month rule

This is the biggest change from the May 2025 reforms and the one most landlords are still getting wrong. Section 41 was amended to say: a landlord can only increase the rent once every 12 months, regardless of whether the tenancy is fixed-term or periodic.

Pre-reform, periodic tenancies could be hit with increases at six-month intervals. That's gone. The new rule applies to every NSW residential tenancy from May 2025 onward, including tenancies that started before the reform.

How to apply it to your situation:

· Look at the date of your last rent increase, or the start of your tenancy if there hasn't been one.
· Count 12 months forward from that date.
· The notice you've received must propose a new rent that takes effect on or after that 12-month anniversary.
· If it takes effect earlier, the notice is invalid. Don't pay the new rent.

Worked example: your tenancy started 1 March 2024. Rent was increased 1 March 2025. The next lawful increase can take effect no earlier than 1 March 2026. A notice asking for an increase from 1 December 2025 is invalid on its face.

Test 2: the 60-day notice rule

Section 42 requires at least 60 days written notice before any rent increase takes effect. Counted from the date you receive the notice (not the date the landlord wrote it) to the date the new rent kicks in.

Notice has to be in writing. Verbal increases aren't valid. Email is valid only if you nominated an electronic address for service in your lease. If you didn't, it has to be served in person or by post to the rented address.

How to count it:

· Day 0: the date you received the notice (postmark, email date, or in-person delivery date).
· Count 60 calendar days (not business days) from there.
· The new rent can take effect on day 61 at the earliest.

If your notice gives you 30, 45, or 50 days, it's defective. The landlord has to re-serve a fresh notice with the proper period. The increase doesn't take effect on the original date.

Test 3: not excessive

This is the test most renters don't know they have access to. Even if the notice is procedurally perfect (12 months apart, 60 days' written notice), you can still challenge the amount as excessive under section 44 by applying to NCAT.

What “excessive” means in the Act isn't a single percentage. NCAT considers a basket of factors:

· General market rents for comparable properties in the same area.
· The state of repair of the premises.
· Any services or facilities included or removed.
· The period since the last rent increase.
· Any work the landlord has done that improves the property.
· Any work the landlord has failed to do that the tenant has had to live with.

In practice, NCAT looks at whether the proposed rent is meaningfully above local comparable properties. An increase that brings you to roughly the market median is usually upheld. An increase that puts you 10-15%+ above comparable nearby properties, especially without corresponding improvements, is often reduced or set aside.

The 30-day clock for an NCAT challenge

This one bites a lot of renters. To challenge an increase as excessive under s. 44, you must apply to NCAT within 30 days of receiving the notice. Not 30 days from when the increase takes effect. Not 30 days from when you decide to challenge it. 30 days from receipt.

If you miss the 30-day window, you lose the ability to challenge the amount as excessive. You can still object to procedural defects (the 12-month rule, the 60-day rule) at any time, but the excessive-amount path is time-barred.

Practical advice: the moment a rent increase notice arrives, mark a calendar reminder for 25 days later as your latest day to either negotiate it down with the landlord OR file the NCAT application. Don't wait.

How to gather market-comparable evidence

If you're going to NCAT on the excessive-amount path, your evidence is going to be a small portfolio of comparable nearby properties currently listed for rent. NCAT calls these “comparables.”

What to collect:

· 5-10 current listings for similar properties (same suburb or directly adjacent, same number of bedrooms, similar age and condition, similar features like parking and outdoor space).
· Screenshots with the URL and date visible. realestate.com.au and Domain are both accepted by NCAT.
· A table summarising address, weekly rent, beds/baths, key features.
· If possible, sold history (recent rentals that actually went, not just asking prices).
· The average and median of your comparables. This is the figure you put in front of NCAT as the “real” market rent.

If your proposed new rent is above the median of your comparables by more than ~10%, you have a real argument. If it's right at or below the median, NCAT is unlikely to reduce it on excessiveness grounds (though the procedural tests still apply).

Template objection letter

Send this BEFORE you go to NCAT. Most landlords back down once they see you know the law, especially if you cite the section numbers. Copy, fill in the brackets, send by email and post.

Template — rent increase objection letter

[Date]

[Landlord or agent name]
[Agency name]
[Address]

Re: Rent increase notice dated [notice date] — [property address]

Dear [name],

I'm writing in response to the rent increase notice you served on [date], proposing to increase the weekly rent from $[current] to $[proposed], effective [date].

After reviewing the notice against the Residential Tenancies Act 2010 (NSW), I have the following concerns:

[Pick whichever apply — delete the others:]

1. The proposed effective date does not comply with section 41 as amended in May 2025. A rent increase can only take effect at least 12 months after the previous increase or the start of the tenancy. My last increase took effect on [date], so the next lawful increase cannot take effect before [date + 12 months].

2.The notice does not provide the minimum 60 days' written notice required under section 42. I received the notice on [received date] and it proposes the increase to take effect on [effective date], which is only [X] days. The notice is therefore invalid and the new rent does not take effect on the stated date.

3.The proposed amount of $[proposed] per week is excessive compared to current market rents for comparable properties in [suburb]. Based on [X] current listings I've reviewed, the median weekly rent for comparable [bedrooms]-bedroom properties in the area is approximately $[median]. The proposed increase is [%] above this median, which I consider excessive within the meaning of section 44.

I'd prefer to resolve this directly. I'm willing to discuss a more moderate increase that reflects market conditions. If we can't reach agreement within [14 / 21] days, I will apply to NCAT for review of the increase under section 44. Please note the section 44 deadline of 30 days from receipt of notice applies, so my application timeline is constrained.

Kind regards,
[Your name]

Template for educational use. Send by email and post. Keep evidence of delivery.

If the landlord won't budge — the NCAT path

Apply to NCAT Consumer and Commercial Division for an order setting aside or reducing the rent increase. The application is online at ncat.nsw.gov.au or by paper form.

· Filing fee: approximately $55, waivable on hardship grounds.
· Deadline: within 30 days of receiving the notice (for the s. 44 excessive-amount path).
· Evidence: the original notice, your written objection letter, your comparables table with screenshots, photos of the property condition (especially anything in disrepair).
· What you ask for: an order that the increase be set aside, OR reduced to a specific amount you propose.
· Timeline: hearing typically within 4-8 weeks of lodgement. Decisions are usually issued the same day.

While the NCAT application is pending, you continue paying the old rent. Don't pay the disputed increase. If the landlord tries to terminate for non-payment, the pending NCAT application is a defence (the increase isn't in force while it's being disputed).

Renterprise rent increase tool

Got a notice on your kitchen table?

Upload it. We'll run all three tests against the Act, build the market-comparables analysis from your suburb, and draft the objection letter and the s.44 NCAT application. Free.

Check my increase — free

Common landlord arguments and why they fail

“The lease says I can increase rent every 6 months.”

You can't contract out of statutory protections (section 19 of the Act). A lease clause that allows increases more often than the Act permits is void. The 12-month rule applies regardless.

“The reform doesn't apply because your tenancy started before May 2025.”

Wrong. The 12-month rule applies to every NSW residential tenancy from May 2025 forward, regardless of when the tenancy began. Pre-existing tenancies are covered.

“The market has gone up, so this increase is reasonable.”

Maybe, maybe not. NCAT will look at YOUR specific comparables, not generic market sentiment. If the market has truly moved and your comparables confirm it, the increase will likely be upheld. If it hasn't, the landlord can't lean on vibes.

“If you don't accept the increase, I'll end the tenancy.”

Empty threat in most cases. Since the 2025 reforms, the landlord can't end a periodic tenancy without a prescribed reason and evidence (see our no-grounds eviction article). Threatening termination in retaliation for exercising a tenancy right (like challenging a rent increase) may also itself be unlawful under section 115.

Written by Mya Bertolini, USYD Law and paralegal at Turks Legal. Educational only, not legal advice. For complex matters, contact the Tenants' Union of NSW on 1800 251 101. Section numbers verified against the Act as at May 2026.