Increasing rent is one of the most common decisions landlords face — and one of the most mishandled. Done wrong, it costs you a good tenant and triggers vacancy. Done right, it increases your yield without disrupting your income.

Victoria Rent Increase Rules 2026

• Rent can only be increased once every 12 months per tenancy
• 60 days written notice is required before any increase takes effect
• The increase must reflect current market rent — excessive increases can be challenged at VCAT
• Fixed-term leases: rent cannot be increased mid-term unless the lease specifically allows it

When to Increase Rent

• Your current rent is more than 5% below the suburb’s median rent for similar properties
• Your tenant has been in place for 12+ months without an increase
• Vacancy rates in your suburb are below 2% (strong tenant demand)
• You have recently renovated or improved the property

When to Hold Rent

• You have an excellent long-term tenant who looks after the property
• Vacancy rates in your suburb are above 3% (tenants have choices)
• The increase would push rent above current market (risk of tenant departure)
• Your tenant is on a fixed term with no increase clause

The Tenant Retention Calculation

Vacancy cost: typically 4-6 weeks lost rent + letting fee (1-2 weeks rent) + advertising + cleaning = approximately 8-10 weeks rent. On a $450/week property that is $3,600-$4,500 in vacancy costs. A $20/week increase over 12 months = $1,040 gain. It takes 3-4 years of the increase to recover one vacancy. Retaining a good tenant is almost always worth moderating the increase.

Ask GeeVee: Market Rent Analysis for Your Property

GeeVee can pull current median rents for your suburb and property type to tell you exactly where your rent sits relative to the market.

Access free: collings.com.au/portal