RTA Q&A – applying the new 12 months limit on rent increases 

The legislation limiting rent increases to once every 12 months has raised several questions. REIWA’s Policy & Advocacy Team has reviewed the Act to provide you with answers.

This article was originally published prior to the announcement of the legislation date. Therefore, these scenarios assumed it would be 1 July 2024.

The legislation came into effect 29 July 2024 - read Understanding the new 12-month limit on rent increases for updated scenario examples.

Can my landlord still include a six-month rent review in a fixed-term lease I sign now?

Yes, six-month rent reviews can be included in new fixed-term leases, renewals and extensions signed before the legislation comes into effect. These increases will be enforceable.

If the legislation comes into effect on 1 July 2024 and I signed a lease in June but don’t move in until July, will the six-monthly increase by applicable?

The legislation suggests the increase would be applicable.

We have followed this up with DEMIRS. They have advised that leases agreed to prior to the legislation coming into effect are valid. It doesn’t matter when you move in.

Can a landlord grant a six-month lease, end it at the end of the term, sign a new lease with the same tenant and increase the rent every six months?

No. The 12-monthly limits to rent increases would apply.

Two or more fixed-term tenancy agreements for the same people (or even just one of the same people) and the same property will be treated as one continuous agreement under the legislation. 

Landlords can still use six-month leases, for example a tenant may only want a six-month lease because they are building or looking to buy, but they cannot use them in this way to circumvent the legislation. Should they try to do so, tenants will be able to lodge a complaint with Consumer Protection and the landlord could be prosecuted.

If I am on a periodic lease and the rent was increased in January can the landlord increase it six months later in July?

No, the 12-month limit applies to periodic leases as soon as the legislation comes into effect. You will only be able to increase the rent in January 2025.

What if I’ve already received a 60 days’ notice for a rent increase in July?

The legislation will void the increase, even if you have already received a notice.

However, as we do not know the date the legislation will apply, it is business as usual. Property Managers and landlords can still issue notices of rent increases for periodic tenancies.