Rent increases

For both fixed-term and periodic tenancies, landlords can only increase rent:

For both fixed-term and periodic tenancies, landlords can only increase rent:

• 12 months after the tenancy start date
• if the increase is not within 12 months from the last rent increase
• for fixed-term tenancies, landlords can increase rent if the tenancy agreement allows this.

Landlords must give the correct notice and meet certain conditions.

Guidance for rent negotiation discussions 

Landlords must give notice to increase rent

A landlord must give their tenant at least 60 days’ written notice of a rent increase. Boarding house landlords must give their tenant at least 28 days’ written notice.

The 60 days’ written notice can be given in advance of the 12-month period. The rent increase can only take effect 12 months after the date the last rent increase took effect and 12 months after the date the tenancy started.

The notice must be served in writing, say how much the rent is increasing to and the day the increased rent is due. The landlord should keep a copy of the notice. If the landlord does not give the correct notice they can:

• serve it again correctly
• ask the tenant to let them extend the notice time so it is correct, or
• apply to the Tenancy Tribunal to extend the notice if the tenant will not allow the landlord to extend it.

Serving notices

Landlords decide how much to increase the rent

The law does not limit how much landlords can increase rent by. It does say how it must be done, and what the tenant can do if they do not agree with the new rent amount. 
Our Market Rent online tool gives an indication of rental prices for similar properties in the same area.

Market rent

There is financial support available from Work and Income if you are struggling with rent payments. You may be eligible for the financial support if you meet the criteria.

Accommodation Supplement  – Work and Income New Zealand 

Rent increases can be agreed in some circumstances

A landlord and tenant can agree to an increase in rent outside the 12-month period restriction if the landlord has done one of the following:

• improved the property, which increases the value and benefits for the tenant. For example, adding a garage the tenants can use for storage and off-street parking
• improved facilities or services for the tenant. For example, an apartment building has a new pool facility available for tenant use. General or necessary repairs are not considered improvements
• changed the tenancy agreement to benefit the tenant. For example, allowed an extra occupant.

A landlord may apply to the Tenancy Tribunal to increase the rent if:

• the tenant does not agree to increase the rent (and the landlord has improved the property other than general or necessary repairs or changed the tenancy agreement to benefit the tenant).
• the landlord has had unforeseen expenses since the rent was last increased.

If the Tenancy Tribunal increases the rent for these reasons, this does not change the normal date the rent is reviewed or increased.
Landlords and tenants should keep in contact and discuss any possible changes to the rent.

Landlords can also increase the bond

When a landlord increases the rent, they can ask the tenant to pay extra bond money. The additional bond must be lodged digitally using our Bond Lodgement webform – ‘Top up an existing bond’

Lodge your bond online 

Tenants should pay the extra bond amount to the landlord when the rent increase takes effect. This must be lodged digitally within 23 working days.

Charging a bond

Rent reductions

The rent can also be reduced in certain situations.

For a specified period or event

A landlord and a tenant may agree to a temporary reduction of the rent for a set period. For example, if a room is being repaired and cannot be used for a while.

This agreement should be in writing with the specified period and end date.

Once the period has ended or the work has finished, the rent goes back to the original amount. This is not a rent increase and does not need notice.

If the rent is too high

If a landlord is charging a lot more than what is being charged for similar properties in the area, tenants should speak to the landlord to negotiate a reduction in rent. The tenant will need to have evidence that their rent is a lot higher than rent for similar houses in the same area. If the landlord declines the rent reduction request, the tenant can apply to the Tenancy Tribunal.

If you have a fixed-term tenancy, you can only apply to the Tenancy Tribunal for a market rent review within:

• 3 months of the beginning of the tenancy, or
• 3 months of the date of the last rent review.

Making an application to the Tenancy Tribunal

If your tenant is struggling with living expenses such as power, gas, food and rent, Work and Income have support available for tenants even if they are working.

Helping with living expenses  – Work and Income New Zealand