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How to Challenge a Rent Increase in NSW (Tenant Guide 2025)

In this article we'll explore how renters can challenge a rental increase in NSW.

Leaso avatar
Written by Leaso
Updated over 2 weeks ago

Has your landlord just issued a rent increase that feels unfair? You're not alone — especially with the updated rental laws in NSW limiting how and when rent can be increased. The good news is, if you think the increase is unreasonable, you have the right to challenge it through NCAT (NSW Civil and Administrative Tribunal).

Here’s a clear, step-by-step guide for tenants in New South Wales.


What Are the New Rent Increase Rules in NSW?

From October 31, 2024, new rental laws came into effect, placing tighter restrictions on how often landlords can raise rent.

Key rules:

  • Rent can only be increased once every 12 months — this applies to both fixed-term and periodic agreements.

  • A landlord must give at least 60 days’ written notice.

  • The notice must clearly state:

    • The new rent amount

    • The date the new rent starts

📘 Ref: Sections 41–42, Residential Tenancies Act 2010 (NSW)


Can I Challenge a Rent Increase in NSW?

Yes! If you believe the increase is too high or not in line with the market, you can apply to the NSW Civil and Administrative Tribunal (NCAT) to review it.

You must apply within 30 days of receiving the rent increase notice.


How to Challenge a Rent Increase (Step-by-Step)

✅ Step 1: Review the Notice

Make sure it:

  • Was given in writing

  • Provides 60+ days' notice

  • Clearly states the increase amount and effective date

If the notice is invalid, you may already have grounds to challenge it.


✅ Step 2: Compare Rent to Market Rates

Gather evidence of similar properties in your area:

  • Listings from real estate websites (e.g., Domain, realestate.com.au)

  • Local rental price reports

  • Agent or valuation letters (optional but helpful)

The Tribunal will consider market rents and property condition when deciding.


✅ Step 3: Apply to NCAT

Apply online via NCAT’s website within 30 days of receiving the notice.

You'll need:

  • A copy of the rent increase notice

  • Your current lease agreement

  • Any evidence of market rates

There’s a small application fee, which may be waived in hardship cases.


✅ Step 4: Attend the Tribunal Hearing

Be ready to explain:

  • Why the increase is excessive

  • What similar properties charge

  • Any issues with the property that reduce its value (e.g., poor condition, repairs needed)


What Happens If NCAT Finds the Increase Excessive?

If NCAT agrees that the increase is excessive, it can:

  • Set a fairer rent

  • Order a rent refund for overpaid amounts (if already applied)

  • Prevent future increases for a set period (often 12 months)


FAQs About Challenging Rent Increases in NSW

Q: Can my landlord increase rent twice a year?
A: No. From October 31, 2024, rent can only be increased once every 12 months — even for periodic leases.


Q: What if my lease started before October 31, 2024?
A: If your agreement is less than 2 years and started before that date, the old rules may still apply. For newer or renewed leases, the new 12-month rule applies.


Q: What is a fair rent increase?
A: Fairness is judged based on comparable market rents. A big jump that exceeds typical rates for your area may be considered excessive.


Q: Do I still have to pay the new rent if I’m challenging it?
A: Yes, you must continue paying the increased rent unless and until NCAT rules otherwise.


Summary: Know Your Rights on Rent Increases

🔑 Rule

✅ Details

Frequency

Rent can only increase once every 12 months

Notice

Must give 60 days' written notice

Challenge Deadline

Apply to NCAT within 30 days of receiving notice

Grounds for Dispute

Unreasonably high increase or above market rates

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