Is my rent increase legal?

Can I challenge a rent increase in NSW and how do I start?

Short answer: you can challenge a rent increase you believe is excessive, but you must act quickly and follow the rules. Since 31st October, 2024 rent can only be raised once every 12 months and you must be given at least 60 days written notice. If you think the increase pushes your rent well above market rates you can apply to the NSW Civil and Administrative Tribunal to have it reviewed.

Receiving a rent increase notice often feels personal and sudden. It can unsettle your household budget and leave you wondering whether there’s anything practical you can do. That frustration is real, and the law now gives tenants clearer procedural protections — plus a pathway to challenge an increase without a lawyer.

The problem tenants face

Most tenants don’t know three things that matter: how often rent can be increased, how much notice a landlord must give, and that NCAT can review increases it finds excessive. That lack of knowledge turns a solvable problem into an urgent panic. We see tenants wait too long, or simply pay an increase they could have challenged.

How people usually handle a rent increase

Most tenants respond in one of three ways:

• Accept the increase and adjust their budget.
• Try to negotiate directly with the landlord or property manager.
• Refuse to pay the higher rent without following the formal review process — which risks breaching the tenancy agreement.

None of those responses is wrong in every case. Negotiation is reasonable and often effective. But negotiation without understanding the legal deadlines and evidence that matters can leave you at a disadvantage.

The better approach — a simple framework you can follow

Start with three clear steps: check, gather, act. The reason is practical. The law sets firm deadlines and the tribunal makes decisions based on evidence. If you miss the deadlines or turn up without evidence, you reduce your chances of a favorable outcome.

Check: confirm the notice is valid and that the timing fits the once‑per‑12‑months rule and the 60‑day notice requirement. Gather: assemble comparable rental listings and any other evidence that shows market rent for similar properties in your area. Act: if you still believe the increase is excessive, lodge an application with NCAT within the time limit.

What the rules actually say

Below is a concise comparison of the key time and notice requirements you need to check on any rent increase notice.

What counts as excessive

NCAT looks at whether the proposed rent is significantly higher than what comparable properties in the area are renting for. The tribunal considers practical evidence: current listings, recent lettings for similar properties, and the property’s condition. NCAT can reduce or set aside an increase it finds excessive after comparing market rents.

Note: there is no legislated percentage cap on increases in NSW. That means the comparison to market rents is the decisive test, not a fixed formula. NSW Fair Trading

How to challenge a rent increase – step by step

If you decide to challenge, follow these numbered practical steps. They’re written so you can act straight away.

1 Check the notice date and the proposed start date. Confirm whether the landlord has complied with the once‑per‑12‑months rule and the 60‑day written notice requirement. NSW Fair Trading

2 Gather evidence of comparable rents. Take screenshots or print listings from major platforms and note suburb, property type, number of bedrooms and any features that affect value. Aim for at least three close comparables.

3 Record any relevant facts about your property that affect rent – recent repairs, included utilities, or unique features. NCAT looks at the whole context.

4 If you still believe the increase is excessive, prepare and lodge an application with NCAT within 30 days of receiving the rent increase notice. Include your comparables and a short statement explaining why you think the increase is too high. NCAT tenancy disputes

5 Keep paying the current rent amount while the application is being considered unless NCAT or a court directs otherwise. Refusing to pay the new amount without a tribunal order risks breaching your tenancy agreement.

Practical tip: keep communication to the point and in writing. If you negotiate with your property manager, follow up verbal discussions with an email outlining what was said and agreed.

What NCAT will consider at a hearing

NCAT balances several factors. They include market evidence from comparable properties, the landlord’s reasons (for example increased costs), the condition and type of your property, and any special circumstances you present. NCAT will not automatically favour the tenant or the landlord; it looks for a fair market outcome.

What you cannot do

• Refusing to pay the increased rent without applying to NCAT or getting an order. That can put you at risk of breach and potential eviction action.
• Assuming there is a fixed percentage cap on increases in NSW. There is not; the test is market comparability.
• Missing the 30‑day window to apply to NCAT. If you wait too long you lose the tribunal avenue.

How we can help

We see tenants in Lake Macquarie who want clarity and a calm way forward. We can help you gather local comparables, explain what counts as similar stock in our suburbs, and point you to the correct NCAT forms and guidance. That doesn’t replace the tribunal process, but it gives you a clearer view of the evidence you’ll want to present.

If you’re on the fence, the most important thing is not to wait. Check the notice, assemble your comparables, and decide whether to lodge with NCAT before the 30‑day deadline.

Wrap up

Getting a rent increase notice is stressful. The law now gives you clear notice and timing protections, and NCAT provides a path to challenge increases that look out of step with local market rents. Know the deadlines, gather good evidence, and use the tribunal if you need an impartial review. That’s how you turn a sudden rent increase into a manageable process.

General information only: this article summarises current rules and typical tribunal practice. It is not legal advice. For formal legal questions contact a qualified professional or NSW Fair Trading and NCAT. NSW Fair Trading | NCAT