Rising costs — maintenance, quit rent, assessment tax, loan servicing — eventually push most landlords to consider a rent increase. The question is less "can I?" and more "when, and how, without damaging a good tenancy?"
The short answer
During a fixed-term tenancy, you generally cannot increase rent unless the agreement itself allows it. A signed tenancy agreement is a binding contract for its stated term. Unless there's a specific rent-review clause, the rent stays fixed until the term ends or the agreement is renewed.
Between tenancy terms — at renewal — you can increase rent freely, subject to market conditions and, in rare cases, any rent-control provisions that may apply to specific older buildings or designated areas.
Where a rent-review clause exists
Some tenancy agreements include a clause allowing a rent increase mid-term, usually for longer leases (2+ years). If yours does:
- Follow the clause exactly — the percentage or formula it specifies, and the notice period required before the increase takes effect
- Increases must be reasonable and documented; unilaterally changing the number outside of what the clause permits is a breach on the landlord's side
- Give the increase in writing, referencing the clause, even if the agreement doesn't explicitly require written notice — it protects you if there's ever a dispute
Increasing rent at renewal
This is the normal path for most landlords:
- Time it early. Notify the tenant of your intended new rent 60–90 days before the current term ends, giving them time to decide and you time to find a new tenant if they decline.
- Benchmark it. Check comparable listings in the same building or immediate area. An increase that's noticeably above market will often just push a good tenant to leave, costing you a vacancy period plus re-letting costs — usually more expensive than a modest increase would have been.
- Frame it around value, not just cost. If you've made improvements (aircon servicing, repainting, appliance upgrades), mentioning them alongside the increase makes it land better.
- Negotiate, within reason. A tenant who's paid on time for two years and takes care of the unit is worth more than the marginal rent difference from a stranger. A smaller increase to retain them is often the better financial outcome.
What you cannot do
- You cannot raise rent as retaliation for a tenant making a legitimate complaint (e.g. reporting needed repairs) — this can be challenged and reflects badly if it ever reaches a tribunal
- You cannot increase rent mid-term simply because the market has moved, without a clause permitting it
- You cannot threaten eviction as leverage to force an increase the tenant hasn't agreed to — that's the wrong order of operations; the correct sequence is: notice of non-renewal at the old rate, followed by a new agreement at the new rate if they choose to stay
A practical middle ground: staggered increases
For long-term tenants you want to keep, consider smaller, more frequent increases (e.g. 3–5% each renewal) rather than a large jump after several years of flat rent. It's easier for tenants to absorb and reduces the chance of them shopping around and leaving.
A note on this article
Rent regulation can vary depending on the specific development, local council area, and whether the unit falls under any rent-control scheme. This is general guidance, not legal advice — check your own tenancy agreement's terms and any applicable local rules before acting.
TenancyDesk lets you track lease end dates and set reminders to review rent ahead of renewal, so increases never sneak up on you or your tenants.