Australia’s rental market is tighter than it has been in years. With a national vacancy rate of just 1.3% as of March 2026, finding a new place if your lease ends can be a stressful scramble. That’s why more tenants are looking at staying put and requesting a rental extension instead of packing up. But asking your landlord to extend isn’t always straightforward — especially with new state laws changing how rent increases and notice periods work.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Rental reforms are rolling out differently in each state. Victoria has banned no-fault evictions and requires a 90-day minimum notice for terminations. Queensland has ended no-grounds evictions. New South Wales has banned rent bidding but hasn’t yet passed no-fault eviction laws. What works for a tenant in Melbourne might not apply in Sydney. Here’s what you actually need to know.
What a Rental Extension Actually Means for You
The first thing to understand is the difference between a fixed-term extension and rolling over to a periodic tenancy. A fixed-term extension means you and the landlord agree on a new end date, usually with the same or slightly adjusted terms. A periodic tenancy continues month-to-month after your lease ends, with no set finish date. Each has trade-offs.
What I tend to notice is that tenants often assume a periodic tenancy is safer because it’s flexible. But in a tight market, a fixed-term extension can protect you from sudden rent hikes or having to move when the landlord decides to sell. Worth weighing against your own situation.
What the New Rent Increase Rules Actually Cost You
The headline rent figure is only part of the story. Under the new rules, a rent increase must follow a specific process — and if the landlord gets it wrong, you may not have to pay the higher amount.
From 25 November 2025, Victoria requires at least 90 days’ notice for any rent increase. The notice must include a clear calculation method — for example, “increase by 1.8% in line with CPI September 2025.” Vague wording like “as per landlord instructions” or “same building price range” is invalid. If the notice is invalid, the increase doesn’t apply.
Queensland and NSW have similar rules. In NSW, rent increases are limited to once per 12 months, and the landlord must give 60 days’ notice. In Queensland, it’s 90 days’ notice and once per 12 months. The table below shows how the three most populous states compare.
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| State | Minimum notice for rent increase | Increases per 12 months | Can you challenge? |
|---|---|---|---|
| Victoria | 90 days | Once | Yes — VCAT |
| Queensland | 90 days | Once | Yes — QCAT |
| New South Wales | 60 days | Once | Yes — NCAT |
Here’s a scenario that catches people out. Say your fixed-term lease ends in June. The landlord wants to raise rent by $50 a week. Under Victorian law, they must give you 90 days’ notice. If they send the notice in May, it’s valid only if the increase takes effect after the 90-day period — which would be August. That means you could stay at the old rate for two months after your lease ends. Many tenants don’t realise they have that buffer.
If you’re unsure whether a proposed increase is fair, you can compare it against market data. A landlord-tenant law service can help you understand whether the increase is reasonable or if you have grounds to challenge it.
Common Mistakes Tenants Make When Asking for an Extension
Asking too late
Most landlords want certainty. If you wait until the last month of your lease to ask for an extension, they may already be marketing the property to new tenants. In a 1.3% vacancy market, they’ll likely find someone quickly. Ask at least 6–8 weeks before your lease ends. That gives both sides time to negotiate terms without pressure.
Not knowing your state’s notice rules
Each state has different rules about how and when a landlord can increase rent. In Victoria, the notice must include a specific calculation method. In NSW, the notice period is 60 days. If you don’t know the rules, you might agree to an increase that isn’t legally valid. Check your state’s tenancy authority before signing anything.
Assuming a periodic tenancy is always better
A periodic tenancy gives you flexibility to leave with proper notice. But it also means the landlord can change terms — including rent — with the required notice. In a rising market, that could mean multiple increases over a year. A fixed-term extension locks in the rent for the duration. What I tend to notice is that tenants who plan to stay for another 6–12 months are better off with a fixed-term extension.
Not documenting the request in writing
Verbal agreements are hard to enforce. If you ask for an extension over the phone and the landlord agrees, get it in writing. An email or formal letter creates a record. If the landlord later changes their mind, you have proof of the agreement. This is especially important if you’re negotiating a rent freeze or a specific increase amount.
How to Negotiate and Finalise Your Rental Extension
Timing your approach
Start the conversation 8 weeks before your lease ends. That gives you time to research market rents in your area, prepare your case, and negotiate. If the landlord says no, you still have time to look for a new place. If they say yes, you can finalise the paperwork without rushing.
What to include in your written request
Your request should be clear and professional. Include your current lease end date, the proposed new end date (e.g., 12 months from now), and any terms you want to keep the same — like the current rent. If you’ve been a good tenant (paid on time, no complaints), mention that. Landlords value reliable tenants, especially in a tight market.
Negotiating the rent
If the landlord proposes an increase, ask for the calculation method. In Victoria, they must provide it. Compare the proposed figure against median rents in your area. The national median weekly house rent is $620, and units are $530. If your proposed increase is above that, you may have grounds to challenge it. You can also propose a smaller increase in exchange for a longer lease term — landlords often prefer stability.
Finalising the paperwork
Once you agree on terms, the landlord should provide a new lease agreement or a formal extension letter. Read it carefully. Check that the rent amount, start and end dates, and any special conditions match what you agreed. If anything is unclear, ask for clarification before signing. Keep a copy for your records.
What happens if the landlord says no
If the landlord refuses an extension, you’ll need to vacate by the end of your lease or go periodic. In Victoria and Queensland, the landlord must have a valid reason to end the tenancy — no-fault evictions are banned. In NSW, no-fault eviction reforms haven’t passed yet, so the landlord can still end a periodic tenancy without giving a reason, as long as they follow the notice rules. If you’re unsure about your rights, a real estate law service can clarify what applies in your state.
Frequently Asked Questions
Can my landlord refuse to extend my lease? ▾
What if my landlord tries to increase rent more than once in 12 months? ▾
Do I have to sign a new lease for an extension? ▾
Can I negotiate a rent freeze in exchange for a longer lease? ▾
What happens if I stay past my lease end without signing anything? ▾
Can I challenge a rent increase if I’m on a periodic tenancy? ▾
Why Getting the Timing Right Matters More Than Ever
With a national vacancy rate of 1.3%, the balance of power still leans toward landlords in most areas. But the new rental reforms give tenants more tools than they’ve had before — longer notice periods, the right to challenge increases, and protection from no-fault evictions in some states. The key is knowing which rules apply where you live and acting early enough to use them. A well-timed, well-documented request is your best shot at staying put on fair terms.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Pros and Cons of Lease Renewal vs New Lease.
Sources and Further Reading
Renter Rights Down Under: What Every AU Tenant Needs to Know — A broader look at tenant protections across Australian states.
Tips for Apartment Lease Early Move-Out Notice in Australia — What to do if you need to leave before your lease ends.
Wealthworks.com.au (2026). New Rental Reforms & Tenant Protections Australia 2026 Guide. 🔗
Consumer Affairs Victoria (2025). Rent increases. 🔗
