Rent is typically paid by a tenant/resident to managing parties in exchange for living at a rental property.  When a property is advertised for rent, the rent amount must be stated in the advertisement for the property at a fixed price. If there are any planned or scheduled rent increases, the RTA recommends that they are included in the advertisement to ensure a prospective tenant is aware of what rent may be increased to within their tenancy agreement period.

Rent increases

Rent cannot be increased unless it has been at least 12 months since the current amount of rent became payable. The 12-month period applies even if the last rent increase was related to a different tenancy agreement with another tenant or by a previous managing party of the property.

It is an offence to increase rent within 12 months of the last rent increase, and the RTA undertakes proactive monitoring to ensure compliance with rent increase limits are complied with.

Learn more on the rent increases webpage.

Advertising

A rental property must be advertised at a fixed price – failing to do so is an offence. Managing parties do not have to display the price on a ‘for rent’ sign at the property, but any other advertisement must include a fixed price.

Customers may complete the online Report a rental advertised at no fixed price form to anonymously report noncompliant advertising to the RTA.

Visit the Rent bidding webpage for more.

Advertising rent increases

While the law does not specify any obligations for managing parties to advertise/notify prospective tenants about a rent increase during a tenancy, it is best practice to include planned rent increases in advertisements and lease agreements.

This information allows prospective tenants to make an informed decision when choosing to apply for a tenancy and can also help avoid disputes during a tenancy.

Example scenarios

Scenario 1

The previous tenant signed a 12-month lease from July 2024 – June 2025, for a property that last had a rent increase in May 2024. This means the previous tenant may have experienced a rent increase in May 2025.

The previous tenant broke their lease in November 2024 and the incoming tenant signs an 18-month lease from December 2024 – May 2026.

This means the incoming tenant may experience a rent increase in May 2025, the seventh month of their new tenancy.

Analysis: In this scenario it is recommended the advertisement to relet the property include details of the possible rent increase in May 2025, so the incoming tenant is aware.

Scenario 2

The previous tenant signed an 18-month lease from July 2024 – December 2026, for a property that last had a rent increase in March 2024. This means the previous tenant may have experienced a rent increase in March 2025 and March 2026.

The incoming tenant signs a 12-month lease from December 2026 to November 2027.

This means the incoming tenant may experience a rent increase in March 2027 the fourth month of their new tenancy.

Analysis: In this scenario it is recommended the advertisement to relet the property include details of the possible rent increase in March 2027, so the incoming tenant is aware.