Rent increase rules in NZ: notice, timing, and review

Under the Residential Tenancies Act 1986, rent increases are allowed — but timing, written notice, and documentation are tightly controlled. This guide covers the legal rules, the Tenancy Services notice form, fixed-term vs periodic differences, and how to run a market-based rent review before you issue notice.

Always check current guidance on tenancy.govt.nz before you serve a notice — details can change.

Core legal rules

• Once every 12 months — for both periodic and fixed-term tenancies (where an increase is allowed). The 12-month clock runs from the tenancy start date or the date the last increase took effect — not from when you decided to increase.
• 60 days' written notice — required before the increase takes effect. The period cannot be shortened, even by agreement.
• Use the prescribed Tenancy Services rent increase form so the notice includes the mandatory fields and creates a clear paper trail.

What the notice must include

A valid rent increase notice should state:

• Current rent (and payment frequency — weekly or fortnightly)
• New rent amount
• Exact calendar date the increase takes effect
• That 60 days' notice is being given
• Full property address

Common failures: wrong start date for the 60-day count, omitting payment frequency, or serving during a fixed term when the agreement does not allow an increase.

Periodic vs fixed-term

• Periodic — you may increase rent (with 12-month gap and 60 days' notice) at any eligible time.
• Fixed-term with no rent-increase clause — rent stays locked for the term. At renewal you can negotiate a new amount in a fresh agreement, or follow the standard 60-day process if the tenancy becomes periodic.
• Fixed-term with a clause — only as the agreement specifies (amount or calculation method).

See also fixed-term vs periodic tenancy.

Running a market rent review first

A rent review is the homework before the notice: gather comparable evidence so the new rent is defensible if challenged at the Tenancy Tribunal. There is no statutory cap in most situations, but the Tribunal can look at whether the new rent aligns with market rates for similar properties.

• Asking rents for comparable homes nearby (bedrooms, condition, amenities)
• Regional rental reports (e.g. Trade Me Property, MBIE)
• Improvements, Healthy Homes upgrades, or rising rates/insurance since the last change

Keep that file with the notice — listings, photos, cost receipts, and your calculation of the new weekly rent.

Timing, communication, and retention

• Prefer modest, regular reviews over long freezes followed by large jumps.
• Align review dates with the tenancy anniversary so the 12-month gap is easy to track.
• Consider an informal heads-up before formal notice: explain market movement or improvements, and stay open to a smaller increase if it retains a good tenant.
• Vacancy maths matter — a few weeks empty while re-letting can wipe out months of a small weekly uplift.

Delivery: hand-deliver, post, or email if agreed in writing — and keep proof of service.

Before you issue (checklist)

• Confirm tenancy type and whether a fixed-term clause allows an increase
• Confirm 12 months since start or last effective increase
• Complete the official Tenancy Services form with current rent, new rent, and effective date
• Count 60 days from proper delivery, not from the day you drafted the notice
• File market evidence, the notice copy, and proof of service together

Common mistakes

• Miscalculating the 12-month window when previous increases were poorly tracked
• Insufficient notice because the 60 days were counted from the wrong start point
• Using an outdated or non-prescribed form
• Attempting an increase mid fixed-term without a contractual right
• No proof of delivery or supporting market evidence if challenged

Record-keeping

Keep a timeline with issued date, effective date, notice copy, delivery confirmation, market research, and any tenant correspondence. That pack is what you need if the increase is disputed later.