Rent Increases and Reductions
Rent increases are limited to once every 12 months and 8 weeks notice in writing is required.
Excessive rent increases can be disallowed and rent reductions can be ordered.
The law in the ACT
Rent increases are covered by the Residential Tenancies Act 1997 (‘RTA’). The terms of every tenancy are set out in the RTA and Standard Lease and are known as the ‘standard terms’. Regarding rent increases, the standard terms specify that:
- The rent may only be increased at intervals of at least 12 months from either the beginning of the agreement for the first increase, or after that, from the date of the last increase (cl 35);
- The landlord (or agent) must give the tenant 8 weeks notice in writing of their intention to increase the rent. The notice must include the amount of the increase, and the date on which the increase will occur (cl 38);
- If the tenant believes the increase is excessive they may apply to the ACT Civil and Administrative Tribunal (ACAT) for a rental rate review (this process is detailed below);
- If the tenant remains in the premises without applying for a review, the increase takes effect from the date specified in the notice (cl 40); and
- The restriction on increases applies provided that at least one of the tenants remains in occupation from the time of the last increase (cl 37).
Information supplied courtesy of the Tenants Union of ACT
Further information and advice for ACT tenants can be sourced from