Rent Increase VIC: Guide for Landlords

This guide is about residential rent increases in Victoria for landlords, rental providers, and renters. It does not cover rent repayment orders, compensation claims, tribunal penalty orders, rent arrears, bond claims, or non-Victorian rent increase rules.

As a rental provider in Victoria, you have the right to increase the rent on your property — but the Residential Tenancies Act 1997 sets strict rules about when you can do it, how much notice you must give, what form you must use, and what information you must include. Get any of these wrong and your rent increase is invalid. The renter only has to pay the higher amount if you follow the rules.

The November 2025 reforms changed the minimum notice period from 60 to 90 days, and from 31 March 2026, both Consumer Affairs Victoria and VCAT now consider additional prescribed factors when assessing whether a proposed rent increase is excessive. These changes make it more important than ever to get your rent increase right the first time.

This guide covers everything you need to know: the legal rules, the correct form, valid and invalid calculation methods, how often you can increase rent, what happens if your renter challenges the increase, and common mistakes that make a rent increase invalid.

If you’re changing rent during an existing tenancy, it helps to review the VIC lease agreement guide and the broader VIC residential tenancies act guide first. If money is later disputed at the end of the tenancy, our VIC rental bond guide guide is the other page you’ll most often need.

The Rules for Increasing Rent in Victoria

The starting point is Section 44 of the Residential Tenancies Act 1997. A rent increase that does not comply with this section is invalid — the renter is not required to pay it, and you cannot enforce it.

To validly increase the rent, you must give the renter at least 90 days’ written notice using the prescribed Notice of Proposed Rent Increase form. The notice must state the amount of the increase, the method by which you calculated it, and a statement informing the renter of their right to apply to the Director of Consumer Affairs Victoria for an investigation within 30 days.

You cannot increase the rent to penalise a renter. If your rental agreement includes a clause saying the renter must pay more rent for breaching a term of the agreement, that clause is void.

A rent increase in contravention of Section 44 is invalid. This is stated explicitly in the Act — there is no discretion, no exception, and no workaround.

How Often Can You Increase Rent?

How often you can increase the rent depends on when the agreement was signed and whether it is fixed-term or periodic.

For agreements that started on or after 19 June 2019, rent cannot be increased more than once in any 12-month period. This applies regardless of the type of agreement. Even if the rental agreement specifies a rent increase before 12 months, that clause is overridden by the Act.

For agreements that started before 19 June 2019, the limit is once every 6 months.

For fixed-term agreements of 5 years or less, the rental provider must wait until the end of the fixed term to increase the rent, unless the agreement specifically allows for an increase during the term. If it does, the agreement must state how the increase will be calculated — either a specific amount or a specified method. The increase cannot exceed the amount or the amount calculated using that method.

For periodic agreements, you can increase the rent at any time provided you comply with the 90-day notice requirement and the 12-month minimum interval.

How Much Can You Increase the Rent?

Victoria does not have a hard rent cap — there is no legislated maximum percentage or dollar amount. However, the law does require you to specify the method by which you calculated the increase, and both Consumer Affairs Victoria and VCAT can declare an increase excessive if it does not withstand scrutiny.

The Calculation Method Must Be Specific

Your rental agreement should state how rent increases will be calculated. The prescribed lease forms (Form 1 for agreements of 5 years or less, and Form 2 for agreements over 5 years) offer four standard options: CPI adjustment (Consumer Price Index — All Groups Melbourne), Statewide Rent Index adjustment, a fixed percentage increase, or a fixed dollar amount increase. You choose one of these when the agreement is signed, and your rent increase must follow that method.

Your Notice of Proposed Rent Increase must then include the specific calculation — not just a reference to the method, but the actual working showing how you arrived at the new amount.

Examples of Valid and Invalid Wording

The following examples come from Consumer Affairs Victoria’s official guidance and illustrate the difference between a valid and invalid rent increase notice.

Invalid wording (the increase will not be valid): “Rent increased by dollar amount.” “Based on the rental market valuation.” “As per rental provider’s instructions.” “All properties in the same building are leased between [price range].” “CPI” (without any further detail).

Valid wording: “The next rent increase will be by 1.8% in line with the Consumer Price Index increase as reported by the Australian Bureau of Statistics for the September 2025 quarter.” “The next rent increase will be by $20 in line with the statewide rent increase for the June 2025 quarter.”

The key distinction is specificity. You must give the renter enough information to independently verify both the method and the resulting amount. If a renter cannot work out from the notice how you arrived at the new figure, the notice is likely invalid.

What If You Use a Property Manager?

If an estate agent manages your property, they will typically prepare the Notice of Proposed Rent Increase on your behalf. However, the agent needs clear instructions from you, because they must accurately complete the form — including the specific calculation method and working. If the agent gets it wrong, the notice may be invalid, and the agent may also be in breach of their Professional Conduct obligations.

The Prescribed Form: Notice of Proposed Rent Increase

You must use the official prescribed form — the Notice of Proposed Rent Increase to Renter of Rented Premises. This is Form 5 under Regulation 21 of the Residential Tenancies Regulations 2021. If you do not use the correct form, the rent increase is not valid and the renter is not required to pay the higher amount.

The form requires you to provide the address of the rented premises, the renter’s details, the rental provider’s full name (this cannot be an agent’s name — it must be the actual rental provider), the rental provider’s address for service (which can be the agent’s address), the current rent amount and payment frequency, the new rent amount, the start date of the increase, the method used to calculate the increase with details of the process and calculation, and the delivery date and method.

The form also includes a section the renter can use to request a rent increase investigation from Consumer Affairs Victoria. This is a built-in feature of the form — you cannot remove it or modify it.

You can download the current form from Consumer Affairs Victoria.

The 90-Day Notice Period

Since 25 November 2025, the minimum notice period for a rent increase in Victoria is 90 days. This was changed from 60 days by Section 11 of the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025, which amended Section 44(1) of the Residential Tenancies Act 1997.

The 90-day period begins when the renter receives the notice — not when you send it. If you send the notice by post, you must allow for delivery time on top of the 90 days. If you send it by registered post, keep evidence of the delivery method. If you send it by email, this is only valid if the renter has consented to receiving notices electronically in the rental agreement.

If you do not give enough notice, the increase is invalid. There is no mechanism to retrospectively validate a short notice period.

What Happens If Your Renter Challenges the Increase

Renters have two avenues to challenge a rent increase they consider excessive.

Step 1: Free Investigation by Consumer Affairs Victoria

The renter can apply to the Director of Consumer Affairs Victoria within 30 days of receiving the notice for a free rent increase investigation (also called a “rent assessment”). The Director will investigate the proposed increase and provide a written report to both the renter and the rental provider.

Since 31 March 2026, the Director’s report must take into account the matters listed in Section 47(3) of the Act — the same factors VCAT uses — plus the additional prescribed matters set out in Regulation 21A of the Residential Tenancies Regulations 2021. These prescribed matters include: the proposed rent compared to the current rent, the rate of increase having regard to the annual inflation rate (CPI — All Groups Melbourne), relevant similarities and differences between the property and comparable properties (including location, facilities, size, state of repair, and number of bedrooms), and whether the rental provider is in breach of the minimum rental standards with a relevant order or infringement notice against them.

That last point is significant. If you have an outstanding VCAT order, infringement notice, or court order for breaching the minimum rental standards, this will now count against you in a rent assessment.

Step 2: Application to VCAT

After receiving the Director’s report, the renter can apply to VCAT within 30 days for an order declaring the proposed rent excessive. Alternatively, if the renter did not request a Director’s investigation, they can apply directly to VCAT with leave — but only after 30 days have passed since the notice was given, and only if VCAT is satisfied there are reasonable grounds for the renter’s failure to request a Director’s investigation first.

VCAT must declare the rent excessive if it is satisfied the proposed rent is more than what should reasonably be paid, having regard to: the rent for comparable properties in the same locality let by non-government rental providers, the state of repair and general condition of the property, the cost of goods, services and facilities provided with the property, any charges the rental provider is liable for, the cost of goods, services and facilities provided by the renter under the agreement, any charges payable by the renter under the Act or any other Act or the agreement, any work the renter has done with consent, any changes in rent and condition since the agreement started or since the last increase, the number of rent increases in the preceding 24 months (including their amounts and timing), any valuation of the property, and any prescribed matters.

Since 31 March 2026, the prescribed matters that VCAT must additionally consider are set out in Regulation 21B and mirror the Director’s prescribed matters above — including the inflation rate comparison and minimum standards compliance.

If VCAT makes an order declaring the rent excessive, the rental provider cannot require the renter to pay more than the amount specified in the order for 12 months.

Importantly, a challenge does not freeze the increase. The renter is required to pay the increased rent from the date specified in the notice unless VCAT orders otherwise. This means that while a challenge is pending, the higher amount is payable — the renter cannot simply refuse to pay the increase because they have lodged an application. If VCAT ultimately declares the increase excessive, the renter may be entitled to a refund of the difference.

Rent Complaints Without a Rent Increase Notice

There is a separate ground for a renter to complain about rent that does not involve a rent increase at all. Under Section 45(1)(a), a renter can apply to the Director if they consider the rent excessive because the rental provider has reduced or withdrawn services, facilities, or other items that were previously provided with the property — without reducing the rent accordingly.

For example, if you previously included a gardening service, communal laundry access, or car parking as part of the tenancy and you remove or reduce that service without lowering the rent, the renter can complain that the unchanged rent is now excessive relative to what they are receiving. This can trigger the same Director investigation and VCAT pathway described above. The practical lesson: if you withdraw a service, consider whether a corresponding rent reduction is appropriate to avoid a complaint.

Changes to the Bond When Rent Increases

When rent increases, you may be entitled to a proportionate increase in the bond — but only in specific circumstances.

For standard agreements (5 years or less), the maximum bond is one month’s rent. If you increase the rent and the existing bond is now below one month’s rent at the new rate, the Act does not automatically entitle you to top up the bond mid-tenancy for these agreements. The higher bond amount applies to the next new agreement.

For agreements over 5 years, Section 34A of the Act allows a rental provider to require an additional bond payment proportionate to the rent increase, but only after the first 5 years of continuous occupation, with 120 days’ written notice in an approved form, and no more than once in any 5-year period.

Setting the Rent Increase Method in Your Lease Agreement

The best time to think about rent increases is when you sign the lease. The prescribed rental agreement forms (Form 1 and Form 2) require you to choose a method for adjusting rent over the period of the agreement. The four standard options are:

Option 1 — CPI adjustment. Rent can be adjusted annually by the Consumer Price Index — All Groups Melbourne, based on the most recent quarterly release from the Australian Bureau of Statistics. You must still give 90 days’ written notice.

Option 2 — Statewide Rent Index adjustment. Rent can be adjusted annually by the Statewide Rent Index (SRI) Annual Percentage Change for Victoria, published in the quarterly Rental Report by the Victorian Department of Families, Fairness and Housing. You must still give 90 days’ written notice. If this index is discontinued, the agreement automatically defaults to Option 1.

Option 3 — Fixed percentage increase. You specify a fixed percentage at the time of signing (for example, 3%). Rent can be adjusted annually by that percentage. You must still give 90 days’ written notice.

Option 4 — Fixed dollar amount increase. You specify a fixed dollar amount at the time of signing (for example, $20 per week). Rent can be adjusted annually by that amount. You must still give 90 days’ written notice.

Whichever option you choose, remember: choosing a method in the agreement does not mean the increase happens automatically. You must still issue the prescribed Notice of Proposed Rent Increase at least 90 days before the increase takes effect, every time.

Rent Bidding Is Now Banned

Since 25 November 2025, rental providers and agents are banned from accepting unsolicited offers of rent higher than the advertised amount. You must advertise your property at a fixed rent amount — not a range — and you cannot accept an offer to pay more than that amount or to pay more than one month’s rent in advance, even if the prospective renter volunteers it.

This is separate from the rent increase rules, but it is worth noting because it means you cannot recover a below-market starting rent by encouraging prospective tenants to bid above the advertised price at the start of the tenancy. The rent you advertise is the rent you charge.

If a rent dispute ends with the tenancy changing or ending, pair this page with our VIC notice to vacate guide and VIC break lease guide guides. For the evidence that often sits behind later claims, our VIC condition report guide guide is worth keeping handy as well.

Common Mistakes That Invalidate a Rent Increase

These are the errors we see most often. Any one of them can make your entire rent increase invalid, meaning the renter is legally entitled to keep paying the old amount.

Not Using the Prescribed Form

A rent increase notice must be issued on the official Notice of Proposed Rent Increase form. A letter, email, text message, or verbal conversation is not sufficient — even if it contains all the required information. If you don’t use the form, the notice is invalid.

Not Giving 90 Days’ Notice

The 90-day period runs from when the renter receives the notice, not when you send it. If you post the notice, you need to add delivery time. If you hand-deliver it, the 90 days starts on the day of delivery. Getting this wrong by even one day makes the notice invalid.

Vague or Missing Calculation Method

Writing “market rent adjustment” or “CPI” without specifying the actual percentage, the relevant quarter, or the resulting dollar amount is not sufficient. The notice must contain enough detail for the renter to independently verify the calculation. If it doesn’t, the notice is invalid.

Increasing Rent During a Fixed Term Without Authority

You cannot increase rent during a fixed-term agreement unless the agreement explicitly allows it and states how the increase will be calculated. If the agreement is silent on mid-term increases, you must wait until the fixed term ends.

Increasing Rent More Than Once in 12 Months

For agreements starting on or after 19 June 2019, rent cannot be increased more than once every 12 months. This is a hard legal limit — a clause in the agreement cannot override it.

Using the Rent Increase as a Penalty

If a renter has breached the agreement — say, by keeping an unauthorised pet or being late with rent — you cannot respond by increasing the rent. A rent increase must be a genuine adjustment to the amount of rent, not a punitive measure. Any clause in the agreement that purports to allow punitive rent increases is void.

Attempting to Schedule Multiple Increases in One Notice

Each Notice of Proposed Rent Increase may provide for one rent increase only. You cannot issue a single notice that schedules two increases — for example, “$20 now and another $20 in 6 months.” If you need to increase the rent again after the first increase takes effect, you must issue a separate notice with a fresh 90-day notice period each time.

Frequently Asked Questions About Rent Increases in VIC

How much notice do I need to give for a rent increase in Victoria? At least 90 days. This changed from 60 days on 25 November 2025. The notice period runs from when the renter receives the notice, not when you send it. If you post the notice, add delivery time.

Is there a maximum rent increase in Victoria? No. Victoria does not have a hard rent cap — there is no legislated maximum percentage or dollar amount. However, your increase must be calculated using the method specified in the lease agreement and the Notice of Proposed Rent Increase. If a renter considers the increase excessive, they can request a free investigation by Consumer Affairs Victoria or apply to VCAT for an order capping the rent.

Can I increase rent during a fixed-term lease in Victoria? Only if the lease agreement specifically allows it and states either a specific amount or the method by which the increase will be calculated. If the agreement is silent on mid-term increases, you must wait until the fixed term ends.

How often can I increase rent in Victoria? For agreements starting on or after 19 June 2019, no more than once every 12 months. For agreements that started before 19 June 2019, no more than once every 6 months.

What form do I use for a rent increase in Victoria? The prescribed Notice of Proposed Rent Increase to Renter of Rented Premises, which is Form 5 under Regulation 21 of the Residential Tenancies Regulations 2021. You can download it from Consumer Affairs Victoria. If you don’t use this form, the increase is invalid.

What happens if my renter challenges the rent increase? The renter can apply to the Director of Consumer Affairs Victoria within 30 days for a free rent assessment. The Director investigates and provides a written report. After receiving the report, the renter can apply to VCAT within 30 days for an order declaring the increase excessive. If VCAT agrees, it will cap the rent at a specified amount for 12 months.

What are the new prescribed matters VCAT considers from 31 March 2026? Since 31 March 2026, both the Director and VCAT must additionally consider: the proposed rent compared to the current rent, the rate of increase relative to the annual inflation rate (CPI — All Groups Melbourne), detailed similarities and differences with comparable properties (location, facilities, size, condition, bedrooms), and whether the rental provider is currently in breach of the minimum rental standards with a relevant enforcement action against them.

Can I increase the bond when I increase the rent? For standard agreements (5 years or less), the maximum bond is one month’s rent, but you generally cannot require a mid-tenancy bond top-up just because the rent has increased. The higher bond applies to the next new agreement. For agreements over 5 years, Section 34A allows a proportionate bond increase after 5 years of continuous occupation with 120 days’ notice.

What if my property manager gets the rent increase notice wrong? If the notice is defective — wrong form, insufficient detail, vague calculation method, or insufficient notice period — the increase is invalid regardless of who prepared it. The rental provider is ultimately responsible for ensuring the notice complies with the Act. An agent who prepares a defective notice may also breach their Professional Conduct obligations.

Can I increase the rent to cover increased costs like rates or insurance? Yes, but only through the proper process. You must still use the prescribed form, give 90 days’ notice, and state the calculation method. The fact that your costs have increased does not exempt you from any of the procedural requirements. If challenged, VCAT will consider whether the increase is reasonable having regard to all the factors in Section 47(3) — not just your costs.

Summary

Increasing rent in Victoria is your right as a rental provider, but it comes with strict procedural requirements that cannot be shortcut. You must use the prescribed form, give at least 90 days’ notice, specify the calculation method in sufficient detail for the renter to verify it, comply with the 12-month minimum interval, and not increase rent during a fixed term unless the agreement expressly authorises it.

Since the November 2025 and March 2026 reforms, the scrutiny on rent increases has intensified. The extended notice period gives renters more time to challenge, and the new prescribed matters mean both Consumer Affairs Victoria and VCAT now compare your increase against the inflation rate and consider your compliance with the minimum rental standards. A rent increase that might have passed without challenge two years ago may now face formal scrutiny.

Landlord Wise handles the complexity for you: automatic notice generation using the prescribed form, built-in calculation validation, correct notice period calculations with postal delivery allowances, and AI-powered assistance at every step.

Related guides for VIC landlords

If you are building out the full landlord workflow for this state, these guides connect this page to the rest of the tenancy process.

Same-state guides

• VIC lease agreement guide
• VIC rental bond guide
• VIC condition report guide
• VIC notice to vacate guide
• VIC break lease guide

Compare rent increase guides in other states

• WA rent increase guide
• NSW rent increase guide
• QLD rent increase guide
• SA rent increase guide
• Tasmania rent increase guide
• ACT rent increase guide