Interest Rates Went Up Again. Can You Put the Rent Up?

Short answer: in WA you can raise the rent once every 12 months with 60 days' written notice. Whether you should depends on what your place would re-let for today. The rules, the Mandurah numbers, and a quick way to decide.

Short answer: yes, if it's been 12 months since the last increase, you can. In WA a landlord can raise the rent once every 12 months, with at least 60 days' written notice on the official form. Whether you should is a different question, and it comes down to one number: what your place would rent for if it were empty today.

The Reserve Bank lifted the cash rate again on 29 September, to 4.60 per cent. The banks are passing it on this month. If you've got a loan on an investment property in Mandurah, your repayments are going up and you're wondering whether the rent should follow. Here's how to think it through.

What just happened to rates · The WA rules on rent increases · Should you raise it? · How much is fair · If you're thinking of selling instead · FAQs

1) What just happened to rates

On 29 September 2026 the RBA raised the cash rate by 0.25 percentage points to 4.60 per cent, saying inflation "remains elevated" and that a further tightening was needed to bring it back to target. It's the fourth increase this year.

What that means in dollars: every 0.25 per cent adds about $104 a month in interest for each $500,000 you owe. Add up this year's increases and the same loan costs roughly $415 a month more than it did in January. That's before the bank's own margin changes.

So the pressure is real. But a rent increase isn't a reflex. It's a decision, and the rules shape it.

2) The WA rules on rent increases

Consumer Protection WA sets these out, and they apply to every residential tenancy in the state:

Once every 12 months. The rent can go up no more than once in any 12-month period, whether the tenancy is periodic or fixed-term.
60 days' written notice. At minimum. The notice has to state the new amount and the day it starts.
On the official form. Form 10, "Notice to tenant of rent increase". A text message or a line in an email doesn't count.
Fixed-term leases: you can only increase the rent during the term if the lease already says how, either a set amount or a set method (a percentage, a dollar figure, or tied to inflation). If the lease is silent, the rent is fixed until it ends. The 60 days still applies.

Get any of that wrong and the increase doesn't stand. That's the most common reason a rent rise fails: not the amount, the paperwork.

3) Should you raise it?

Your repayments going up isn't, on its own, the reason to raise the rent. The market is. Three things to check, in order:

What would it rent for today? REIWA's Mandurah profile (as at 7 October 2026) puts the median rent at $550 a week, up 4.4 per cent on a year ago. That's the whole suburb; a three-bedroom in Dudley Park and a four-bedroom in Halls Head sit either side of it. Look at what's actually listed near you with the same bedrooms and condition. If your rent is well under that, there's room. If it's at or above it, an increase mostly buys you a vacancy.
When did it last go up? If it's been under 12 months, the answer is no, by law. If it's been two or three years, you're probably behind the market and your tenant half expects it.
Who's the tenant? A good tenant paying $20 a week under market is worth more than a new tenant paying full price. Two weeks empty at $550 a week is $1,100 gone, plus the leasing cost and the risk of who comes next. A $20 increase takes a whole year to earn that back.

If the first check says there's room and the second says you're allowed, go ahead. If the third makes you hesitate, that's useful information too.

4) How much is fair

There's no cap on the amount in WA, but a tenant can challenge an increase they think is excessive, and a big jump is the surest way to lose a good tenant. What works:

Move towards market, not past it. If you're $40 a week under, two steps a year apart land better than one.
Explain it. One line in the notice or a call from your property manager: here's what similar homes are renting for, here's where you'll be. Tenants accept increases they understand.
Time it with the renewal. Renewal is the natural moment to review the rent, and it means a new fixed term with the new amount written in.
Don't tie it to your loan. Your tenant doesn't set your interest rate, and "my repayments went up" isn't an argument they can do anything with. Market rent is.

5) If you're thinking of selling instead

Some owners will look at the fourth rate rise and decide the maths doesn't work any more. Fair enough. The number to know: REIWA has Mandurah's median house price at $701,000 as at 7 October 2026, up 20.9 per cent on the year, with houses taking a median of 27 days to sell. Rates have gone up four times and the market hasn't flinched yet. Whether that holds through summer, nobody can promise. If selling is on the table, the honest first step is a rent or sell check and a conversation, not a decision.

FAQs

Can I raise the rent in the middle of a fixed-term lease?
Only if the lease already says how much or how it's calculated. Otherwise the rent is fixed until the term ends.

How much notice do I have to give?
At least 60 days, in writing, on Form 10. Count the days from when the tenant receives it, not when you send it.

Can my tenant refuse?
They can't simply refuse a lawful increase, but they can challenge one they believe is excessive. Keeping the increase in line with what similar homes rent for is your protection.

Can I ask for more bond when the rent goes up?
The bond can be topped up to match the new rent, and if the tenant has a pet, the pet bond can be requested at the next rent increase (the maximum pet bond is $350).

Does my property manager do all this?
They should: the rent review, the comparables, the form, the notice period, the conversation with the tenant. If yours hasn't reviewed your rent in a long time, that's one of the signs it might be time to switch.

Not sure what yours would rent for?

We'll tell you, with the comparables, for free. Start with a free rental appraisal or call us on 08 9521 9090.

Sources: Reserve Bank of Australia, Monetary Policy Decision, 29 September 2026. Consumer Protection WA, rent increases and WA rent reforms. REIWA, Mandurah suburb profile, data as at 7 October 2026. Loan figures are interest on the rate change only and don't include fees or principal.