Raising the rent is more than just adding more dollars to your income.
It’s about keeping your returns in line with the overall market conditions, without losing good tenants in the process, only if it is done right.
Here in NSW, there are clear rules on how and when rent increases can happen. Try missing a step, and you could upset tenants and worse, find yourself in breach of legislation.
If you’re managing a property in Hurstville, Bexley, or surrounding suburbs, here’s what to know about rent increase notice requirements in NSW, and how to raise rent the legal way.
When Should You Increase Rent?
Rent reviews shouldn’t be a “set and forget” task. You’ll want to consider a rent increase if:
- Market conditions have changed. If comparable properties in your area are renting for more, it’s worth reassessing.
- Your costs have risen. Strata fees, interest rates, and trades have all gone up; your rent should reflect that.
- It’s been 12 months since your last increase. In NSW, you must wait at least 12 months between rent increases, even if you switch lease types and the tenant stays.
Lease type matters, too:
- Fixed-term leases under 2 years can only include rent increases if it’s written into the lease and clearly states how the increase will be calculated.
- Periodic agreements and longer fixed terms allow increases, but only once per year and with proper notice.
Tip: Small, regular increases are easier for tenants to manage than large, sudden jumps. Don’t wait too long.
NSW Rent Increase Rules (As of 2025)
Rent increases in NSW come with strict conditions:
- 60 days written notice is mandatory.
The notice must include the new amount, effective date, and be signed and dated. - Rent can only be increased once every 12 months.
This applies regardless of lease type if the agreement is ongoing with the same landlord and tenant. - Market justification isn’t legally required, but it helps.
Providing tenants with a reason can ease tension and reduce pushback. - Rent bidding is illegal.
You can’t advertise a price range or invite offers above a listed price.
How to Communicate Rent Increases to Tenants
Getting the legal side right is important. But how you communicate is just as critical to keeping tenants onside.
- Be upfront. Avoid surprises. Give tenants time to budget and adjust.
- Explain the why. Point to rising maintenance costs, market trends, or upgrades.
- Stay human. A respectful tone builds trust. This is a partnership, not just a transaction.
- Offer value. If you’ve recently improved the property or maintained it well, remind them.
Example wording:
“We’ve reviewed market trends in Hurstville and nearby suburbs, and rents have increased by around 6–8% over the past year. To remain aligned with market conditions and rising maintenance costs, we’ll be adjusting the rent from $580 to $620 per week, effective from 1 October.”
What to Watch Out For
- Sharp increases lead to tenant turnover.
Losing a good tenant often costs more than a modest increase would have gained. - Neglecting maintenance kills credibility.
If you haven’t fixed that leaky tap, don’t expect a rent rise to go down well. - Timing matters.
Avoid raising rent during tough periods like Christmas or after major repair disruptions.
How We Handle Rent Reviews
At Mclaws Property, we do not make assumptions or come up with our own estimates when it comes to rent increases. Here’s how we support landlords in this aspect:
- Conduct regular market appraisals
- Ensure full compliance with NSW rent increase notice laws
- Draft and deliver professional notices
- Clear communication strategies with tenants to protect relationships
Rent Increases Done Right
Raising rent is part of growing your return, but it’s not something to take lightly. When you have the right timing, approach, and compliance, you can add more to your income without risking vacancy.
Want a second opinion before increasing rent? Contact Mclaws Property today for a free rent review and compliance check. We’ll help you make the right move, with confidence.