How to Increase Rent in NSW in 2026 — A Step-by-Step Guide for Self-Managing Landlords

If you're a self-managing landlord in NSW who's been thinking about raising the rent, there's something important you need to know first: the rules changed significantly in October 2024 — and a lot of landlords are still doing it the old way.

Getting it wrong doesn't just mean an awkward conversation with your tenant. It can mean the increase is legally invalid, your tenant doesn't have to pay it, and in some cases you're on the hook for a refund. This guide walks you through exactly what the current rules are, what you need to do, and what mistakes to avoid.

Quick Summary — NSW Rent Increase Rules 2026

You can only increase rent once every 12 months
You must give at least 60 days written notice before the increase takes effect
The notice must state the new rent amount and the date it starts
Renewing the lease or switching lease types does NOT reset the 12-month clock
There is no cap on how much you can increase — but tenants can challenge an 'excessive' increase at NCAT

What Changed in October 2024

Before 31 October 2024, the once-per-year rule only applied to periodic leases and fixed-term leases of two years or more. If you had a short fixed-term lease — say, six or twelve months — you could technically include multiple rent increases within that period if they were written into the agreement.

That loophole is now closed for standard private residential tenancies. The Residential Tenancies Amendment Act 2024 extended the 12-month limit across lease types in NSW — periodic agreements, fixed-term agreements and renewals. The practical rule for self-managing landlords is simple: do not increase rent more than once in any 12-month period.

Important: if you have a fixed-term lease that started before 13 December 2024 and has a term of less than two years, different transitional rules apply. Once that agreement ends and a new one begins, the standard 12-month rule applies from that point forward.

The 12-Month Rule — What It Actually Means Day to Day

A few scenarios that catch landlords out:

Your tenant has been in the property 10 months. You want to increase rent when you renew the lease at 12 months. That's fine — but the increase can't take effect until 12 months after the tenancy started, not the day you renew.

You increased rent in March 2025. You can't increase again until March 2026 at the earliest — and you'd need to give at least 60 days notice. For a 1 March 2026 start date, that means sending the notice by early January at the latest, and earlier if you are allowing for postal delivery or want a buffer.

Your tenant renews their lease or switches from a fixed-term to a periodic agreement. This does NOT reset the clock. The 12-month period runs from the last rent increase, regardless of what happens to the lease type.

How Much Notice Do You Need to Give?

At least 60 days written notice before the new rent takes effect. If you want rent to go up on 1 September, treat early July as the deadline and build in extra time if you are posting the notice or are not completely sure when it will be taken to have been served.

A few things that are easy to get wrong here:

Email can only be used where it is a valid method of serving notices for that tenancy — for example, where the tenant has agreed to receive notices by email, or the agreement or communication history clearly supports it. If in doubt, use the official form and a service method you can prove.
The notice must state the new rent amount, not the amount of the increase. '50 per week more' is not valid. '$650 per week from 1 September 2026' is valid.
The notice must also state the date from which the increased rent is payable.
Even if a rent increase is already written into your tenancy agreement, you still need to give formal 60-day written notice. Writing it into the lease doesn't remove that obligation.

What Form Do You Use?

NSW Fair Trading has an official Notice of Rent Increase form you can download for free from the NSW Government website. You don't have to use the exact form if your notice contains all required details, but using the official form reduces the risk of missing something important.

If you're writing your own, make sure it includes:

Your name and the property address
The current rent amount
The new rent amount (not the difference — the new total)
The date from which the new rent is payable
Your signature/name and the date

Is There a Cap on How Much You Can Increase?

No — for ordinary private residential tenancies, NSW does not set a fixed percentage or dollar cap on rent increases. You can propose the new rent you think is appropriate, but it still needs to be defensible if the tenant challenges it as excessive.

However, your tenant has the right to challenge the increase if they believe it's excessive compared to market rent. They can apply to NCAT (the NSW Civil and Administrative Tribunal) within 30 days of receiving your notice. If NCAT agrees the increase is excessive, it can set a different rent amount for the next 12 months.

The practical implication: if you're planning a significant increase, it's worth being able to point to comparable rentals in the area at a similar price. That's not a legal requirement — it's just sensible preparation in case it's ever challenged.

From 2 March 2026 — Centrepay Payment Option

One more change that came in recently: as of 2 March 2026, landlords are legally required to offer Centrepay as an approved rent payment method for all tenancies — new and existing. Centrepay is a free bill-paying service for people receiving Centrelink payments. If a tenant chooses to use it, you must set it up. You cannot opt out of offering it.

You cannot charge your tenant any fee or penalty for using Centrepay. This doesn't affect the rent amount itself — it's purely a payment method obligation, separate from rent increase rules.

Common Mistakes That Make Your Rent Increase Invalid

These are the situations that end up at tribunal:

Not enough notice — Sending the notice 45 days before the increase takes effect is invalid. You need at least 60 days.

Wrong amount in the notice — Writing '+ $50 per week' instead of the new total. The notice is invalid if it doesn't state the full new rent amount.

Increasing too soon — Trying to increase rent 10 months after the last increase. The increase won't stand.

Assuming lease renewal resets the clock — It doesn't. One increase per 12 months, measured from the date of the last increase, regardless of what happens to the lease.

Not giving notice at all — If a rent increase is written into a fixed-term agreement, you still need to give separate 60-day written notice. The lease entry alone doesn't satisfy the requirement.

Step-by-Step: How to Do It Correctly

Check the date of your last rent increase. If it's been less than 12 months, wait.
Decide on the new rent amount — research comparable properties in your area so you can justify it if challenged.
Count back 60 days from your intended start date. That's the latest you can send the notice.
Write the notice — use the NSW Fair Trading form or your own. Include the new amount and the start date.
Serve it properly — use a valid service method and keep proof of when and how you sent it. If using email, make sure email is a valid method for that tenancy.
Update your records — log the new rent, the notice date, and set a reminder for 12 months time.

Keeping Records in Case It's Ever Disputed

The situations where self-managing landlords get into trouble at tribunal are almost always about paperwork — notices sent without proof, rent increases applied too early, no record of when anything happened.

For a rent increase, the minimum you should be keeping on file is: a copy of the notice you sent, proof of when you sent it (forwarded email, screenshot), and the date the new rent took effect. That's your evidence if a tenant claims they weren't properly notified.

The Bottom Line

NSW rent increase rules are more straightforward than they used to be — generally, one increase per year, at least 60 days written notice, and the correct details in the notice. The late-2024 changes simplified things by making the rules more consistent across lease types.

The mistake most self-managing landlords make isn't deliberate — it's just doing it the old way without realising the rules changed, or sending the notice a few days too late and not realising that makes the whole increase invalid.

Get the process right once, log it, and set a reminder for next year. It's genuinely that straightforward — and PropEasy can handle all of it for you automatically.

This article is for general information only and reflects NSW tenancy law as at May 2026. It does not constitute legal advice. Laws change — always verify current requirements with NSW Fair Trading or a qualified solicitor.