How much can your rent increase in NSW?

There's no cap on how much rent can increase in NSW — but there are strict rules about how and when, and you can challenge an excessive increase. Rent can only be increased once every 12 months, you must receive at least 60 days' written notice, and you have 30 days from receiving a notice to apply to NCAT if you believe the increase is excessive. Details on all three rules: NSW Fair Trading — rent increases.

First: is the notice even valid?

Under the Residential Tenancies Act 2010 (NSW), an increase notice must be in writing, state the new amount and the day it takes effect, and give you at least 60 days. If the last increase was less than 12 months ago, or you're inside a fixed term that doesn't provide for an increase, the notice may simply not be enforceable. An invalid notice doesn't need to be challenged — it needs to be pointed out, in writing.

Challenging an excessive increase

If the notice is valid but the number is out of line, you can apply to NCAT within 30 days of receiving the notice for an order that the increase is excessive. The tribunal weighs, among other things, market rents for comparable properties, the state of the premises, and what's included. Evidence that helps:

• Current listings for comparable properties in your suburb, saved as PDFs with dates
• Your property's condition — outstanding repairs, aging fittings, anything that's got worse since you signed
• The increase as a percentage, against your rental history

Negotiating still works

Most increases are resolved by a letter, not a hearing. A written response that shows you know the rules — the 12-month limit, the notice requirements, the NCAT option — and counters with comparable listings often lands on a smaller number. The Tenants' Union rent increases factsheet is a good companion while you draft.