Rent (increases or getting behind)

Failure to pay rent is a breach of your obligations as a tenant.

Your landlord can commence taking steps to terminate your tenancy agreement as
soon as you fall into rent arrears.

There are two different processes that your landlord may take to terminate your
lease.

The processes are set out in our Factsheet: Rent Arrears

If you receive notification from your landlord that you are behind on your rent, you
should try to pay the arrears before your landlord takes any further action.

If you cannot pay the arrears, you may wish to speak with a financial counsellor
about your situation. Financial counsellors may be able to assist you with working
out a budget, entering a payment plan or assisting you with finding any emergency
relief that might be available to you. To find your local financial counsellor call the
Financial Counsellors Association on 1800 007 007.

Your landlord cannot remove you from the property without a court order.

The notice

If your landlord wants to increase your rent, you must be given not less than 60 days’ notice of any rent increase on a Form 10. 

The same notice is required for rent increases in all circumstances.  

Your rent can only be increased once every 12 months.   

Note, if you entered into a fixed term tenancy agreement prior to 29 July 2024, your landlord may be able to increase your rent once every 6 months.  If you are unsure about the notice you have received, you should seek legal advice.  

If you are in a fixed term agreement 

Your rent can only be increased using the above method during the fixed term period if the amount of the increase, or a method of calculating the increase is included in your tenancy agreement. 

If your fixed term agreement is for longer than 12 months, your tenancy agreement may contain further rent increases.  You should check your tenancy agreement. 

If you are renewing a fixed term agreement (or signing a new agreement that will commence after your current fixed term expires) 

Your landlord can increase the rent when you are signing a new fixed term tenancy agreement.  You are still required to receive the required notice. 

If you are on a periodic agreement (an agreement with no fixed end date) 

Your landlord can increase the rent by providing you the above notice. 

If you are entering into a new fixed term tenancy, renewing a fixed term tenancy or are in a periodic tenancy, there is no limit to how much your landlord can increase your rent by. 

When you are in a fixed term tenancy agreement, your landlord can only increase your rent in accordance with any amount, or method of calculation that is set out in your tenancy agreement. 

Your landlord cannot require you to be more than two weeks in advance.  

Sometimes you may choose to pay more than two weeks in advance, for example, if you get paid monthly and pay your rent for the month at one time.  However, this cannot be an enforceable term of your contract, and your landlord can only ask you to be two weeks in advance.

There are limited circumstances when you may be able to argue that the rent is excessive. These include where there has been a significant reduction in the facilities in the property after you entered into the agreement, or where rent has been increased excessively. 

If you think a rent increase is excessive, you can: 

• Negotiate with the lessor to lower or withdraw the increase; or 
• Apply to the Magistrates Court for an order that the new rent is excessive (the application must be made within 30 days of receiving the rent increase notice). 

The Court will take into account: 

• Rents for similar premises in the same or a similar area 

• The estimated capital value of the premises at the date of the application 

• The lessor’s outgoings in respect of the premises 

• The estimated costs of any services provided by the lessor or tenant under the agreement 

• The value and nature of furnishings, fixtures and facilities provided with the premises for use by the tenant 

• The accommodation provided in the premises 

• The general condition and state of repair of the property 

• Any other relevant matter. 

If you decide to make an application to Court you will need to bring evidence about each of these factors. A Court may not make a rent reduction order simply because the market has declined, and surrounding rents have dropped.