Sydney has recovered well from the rental fall caused by the COVID-19 outbreak. We still have vivid memories of landlords lowering rentals by 20-30% to avoid having empty properties. But, by 2023, the rental market has changed dramatically. Property managers are witnessing a market they haven't seen in years, with huge queues for rental inspections and enthusiastic tenant enquiries.

With this transition and the frequent interest rate hikes, landlords are questioning how to boost their rent in order to maximise their investment return.

When increasing the rent on a residential property in New South Wales, landlords must follow specified criteria. These regulations are intended to protect tenants from unreasonable and unjustifiable rent hikes. In this post, we will look at how much a landlord can raise the rent in New South Wales and the legal conditions that must be met.

A landlord cannot increase rent more than once every 12 months under the Residential Tenancies Act 2010 (NSW). In addition, the landlord must provide at least 60 days written notice of the increase, which must be reasonable and justifiable.

• The landlord may raise the rent once every 12 months.

• The landlord must provide at least 60 days' notice.

• The rise must be market-based and justifiable; nonetheless, there is no limit to the increase.

• If the renter has a fixed lease, the landlord cannot raise the rate.

• The landlord can show that the requested rent increase is justified by considerations like repairs, property improvements, and market changes.

The increase will take effect from the effective date once the rent increase notification has been issued to the tenants. To take effect, the landlord does not require the tenant's acknowledgment or acceptance of the increase. The tenant may, however, negotiate the extra sum with the landlord.

It's also worth noting that tenants have the right to contest the rent increase if they believe it's exorbitant or unwarranted, and they can do so through their landlord or the NCAT.

In conclusion, Sydney has made a significant recovery from the rental decline caused by the COVID-19 outbreak. With the market shift and interest rate increases, many landlords are currently reconsidering their rentals. While assessing rents, keep in mind that landlords can only raise the rent once every 12 months with 60 days' notice.

Please contact our award-winning property management team for assistance in reviewing your rent and developing a strategy that maximizes your investment return while adhering to all applicable requirements. To learn more, please contact us immediately.