Changes to limit rent increase frequency to once every 12 months came into effect for all new and existing tenancies on 1 July 2023. Rent cannot be increased unless it has been at least 12 months since the current amount of rent became payable by the tenant. More frequent rent increases written into tenancy agreements prior to 1 July 2023 do not apply.
It is an offense under the Residential and Rooming Accommodation Act 2008 (the Act) to increase the rent more frequently than once every 12 months.
As of 1 July 2023, the rent increase frequency changes apply to all new and existing tenancies. Any rent increase will only be valid if it has been 12 months or more since the current rent became payable by the tenant. More frequent rent increases written into tenancy agreements are unenforceable and do not apply.
Example 1: Tenants moved into a rental property in December 2022 and signed a 12-month agreement, which included a clause to increase the rent in June 2023. This rent increase still applies because it came into effect before the 1 July 2023 changes.
Example 2: Tenants moved into a rental property in February 2023 on a six-month agreement which ends in August 2023. In April 2023, the tenants and the property manager agreed to renew the tenancy agreement for a further 12 months at the end of the tenancy. They signed a new lease to start in August 2023 with a $20 rent increase. The new rent amount is invalid because it comes into effect after 1 July 2023 and it will have been less than 12 months since the tenants moved into the rental property and paid the current rental amount.