South Australia Rent Increase Rules
Understand SA rent increase laws, including the once-per-12-months limit (from March 2024) and the mandatory 60-day written notice period.
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South Australia Rent Increase Rules
Rent Increase Process in south australia
Confirm 12-Month Gap
Ensure at least 12 months have passed since the previous rent increase.
Prepare Written Notice
Draft a written notice specifying the new amount and effective date.
Serve Required Notice Period
Deliver the notice to the tenant at least the required number of days before it takes effect (check Residential Tenancies Act 1995).
Tenant Challenge Window
The tenant may apply to South Australian Civil and Administrative Tribunal (SACAT) if they believe the increase is excessive.
South Australia's rent increase laws were significantly tightened as part of the 2024 reforms. While there is no cap on the amount a landlord can increase rent, the frequency and process are now strictly controlled.
The Once-Per-12-Months Rule (From March 2024)
Since 1 March 2024, rent can only be increased once within any 12-month period. This applies regardless of whether the tenancy is fixed-term or periodic, and even if the landlord and tenant mutually agree to a more frequent increase—it is simply not permitted by law.
The 12-month clock starts from either:
- The date the tenancy agreement commenced, OR
- The date the last rent increase took effect.
No Rent Control, But "Excessive Increase" Challenge
South Australia does not have rent control—there is no statutory percentage limit on how much a landlord can raise the rent. However, a tenant has the right to challenge an increase they believe is excessive by applying to SACAT within 90 days of receiving the notice.
When assessing whether an increase is excessive, SACAT considers:
- The prevailing market rent for comparable properties in the area.
- The general condition and age of the premises.
- The amenities available.
- Whether the increase is disproportionate to the previous rent.
If SACAT agrees the increase is excessive, it can set a lower, fairer rent amount.
Notice Period: 60 Days
All rent increases require at least 60 days' written notice to the tenant. This applies to both periodic and fixed-term tenancies.
Fixed-Term Agreements
Rent can only be increased during a fixed-term agreement if the tenancy agreement specifically includes a condition that:
- Allows for a rent increase during the term.
- States precisely how the increase will be calculated (e.g., a fixed dollar amount, a percentage, or an increase based on the Consumer Price Index/CPI).
Even if such a clause exists, the 60-day written notice requirement still applies, and the increase cannot take effect until 12 months after the start of the tenancy or the most recent rent increase.
Periodic Tenancies For a periodic (month-to-month or week-to-week) tenancy, the landlord can increase the rent at any time, provided:
- At least 12 months have elapsed since the last increase (or the start of the tenancy).
- At least 60 days' written notice is given.
Common Misconceptions in
Don't fall for these common myths. Know what the law actually says.
"I can increase rent every 6 months if the market has moved significantly."
Since 1 March 2024, rent can only be increased once within any 12-month period. This is absolute — even mutual agreement to a more frequent increase is not permitted by law.
"Once I serve a 60-day notice, the tenant must accept the new rent."
The tenant has 90 days from receiving the notice to apply to SACAT to challenge the increase as excessive. SACAT can set a lower rent based on comparable market evidence.
"I can include any automatic rent increase clause I want in a fixed-term agreement."
A fixed-term agreement can only include a rent increase clause if it specifies both the permission to increase AND the precise calculation method (e.g., CPI or a fixed dollar/percentage amount). A vague clause permitting increases at will is void.
Best Practices for SA Landlords
- Track the 12-Month Anniversary: The most common compliance error is attempting to raise rent before the 12-month window has reopened. Use property management software to track this precisely.
- Reference Comparable Market Rents: When drafting your 60-day notice, have evidence of comparable property rents in the area available. This will be your primary defense if the tenant challenges the increase at SACAT.
- Put CPI Clauses in Writing: If you want automatic annual increases, ensure the fixed-term agreement clearly states how the CPI increase is calculated to avoid disputes.
Frequently Asked Questions:
The 12-month clock starts from either the date the tenancy agreement commenced or the date the last rent increase took effect — whichever is more recent. For example: if a tenancy started on 1 February 2024 and the first rent increase took effect on 1 August 2024, the landlord cannot increase the rent again before 1 August 2025. Use compliance software to track this date precisely to avoid a costly SACAT application.
SACAT primarily looks at: (1) Current asking rents for comparable properties in the same suburb or area (ideally evidenced by current real estate listings or a market appraisal); (2) The age and condition of the premises; (3) The amenities available (parking, air conditioning, dishwasher); (4) Whether the proposed new rent is disproportionate to what the tenant has been paying. Having a current market appraisal from a licensed agent is the best defence against a successful challenge.
CPI (Consumer Price Index) clauses are most common in fixed-term agreements, where they provide a predictable annual increase. For periodic tenancies, they are less common but not prohibited. The key requirements are still the same: 12 months between increases and 60 days written notice. Note that Adelaide CPI data is published quarterly by the Australian Bureau of Statistics (ABS).
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