5 Signs It’s Time for a Rental Price Review (Without Scaring Off Good Tenants)
Increasing rent is essential for safeguarding your long-term investment and ensuring your property's continued performance, not a sign of greed. However, we understand the reluctance to risk losing excellent tenants due to an ill-timed or poorly managed increase.
Regular rent reviews are so important because the market is constantly changing, and your returns should too. Deciding when to increase rent in NSW requires a balance of timing, adherence to legislation, and practical judgment.
Let’s break down five signs it’s time to take a closer look at your rent, without putting your tenant relationships at risk.
Why Rent Reviews Matter
Costs are going up. Council rates, insurance premiums, strata levies. It’s all part of owning an investment property. Add in inflation and market shifts, and suddenly that rent you set 18 months ago might not be doing your bottom line any favours.
Regular rent reviews are essential for protecting your returns and preventing your property from falling behind market rates. When managed carefully, these increases also help maintain your property's competitiveness and appeal.
5 Signs It’s Time for a Rent Review
1. Market Rents Have Shifted
Take a look at similar properties in your suburb. If they’re commanding more rent than yours, and offering the same or less value, it’s time to reassess. Use rental comparison tools or speak with your property manager to get up-to-date insights.
2. Your Expenses Have Increased
If you’ve recently seen hikes in council rates, insurance premiums or strata levies, a rent review can help offset those rising costs. Your investment needs to remain viable, and sustainable.
3. You Haven’t Reviewed Rent in 12+ Months
According to NSW Fair Trading, “rent cannot be raised within the first 12 months of a tenancy. After an increase, the landlord must wait at least 12 months before another increase.” Even if you choose not to increase the rent after a year, a review keeps you informed and ready to act when the timing is right.
4. Your Property Has Improved
Have you renovated the kitchen, replaced old carpet, or added air conditioning? Even small improvements can justify a modest rent increase. You’ve added value, and the rental price should reflect that.
5. High-Demand Period is Approaching
In the Northern Beaches, February is notoriously busy for rentals. If your lease is ending just before the surge, it’s a golden opportunity to adjust your rent in line with demand. Reviewing pricing before re-listing gives you a clear edge in attracting the right tenant, at the right price.
How to Approach a Rent Increase (Without Losing Great Tenants)
Increasing rent doesn't have to be a source of tension or discomfort. The key lies in clear communication, fairness, and demonstrating your appreciation for your tenants.
Base it on real data: Share comparable market rents with tenants to justify the increase.
Keep it reasonable: A modest rise (in line with legislation) is often easier for tenants to absorb than a sudden large jump.
Offer added value: Timely maintenance, great communication and a well-managed property can go a long way in helping tenants understand the worth of their rental.
If your tenant pushes back, remember they can dispute excessive increases. NSW Fair Trading explains, “you can apply to the NSW Civil and Administrative Tribunal (NCAT) within 30 days of receiving the rent increase notice if you believe that the rent increase is excessive.”
How Greycliffe Property Helps Landlords Thrive
At Greycliffe Property, we don’t leave rent reviews to chance. As part of our ongoing service, we:
Conduct regular rent reviews based on local market conditions
Use current rental data and property insights to guide recommendations
Help you balance rental increases with tenant retention
Ensure all increases comply with NSW tenancy law
Time to Take a Fresh Look at Your Rent
Raising rent in NSW requires careful strategy, not just good timing. Regular rent reviews are essential to safeguard your investment, offset increasing expenses, and maintain your property's profitability.
Not sure if your rent is keeping pace with the market?
Contact us for a free rental health check. We’ll review your property to ensure you're maximising its financial potential.