Rent increases in New Zealand: 60 days’ notice and the 12-month rule

The rules

• At least 60 days’ notice, in writing (28 days in a boarding house).
• The increase can take effect only 12 months after the last increase took effect, and 12 months after the tenancy started.
• The notice can be given before the 12 months are up, as long as the increase itself does not start until they are.
• During a fixed term, rent can go up only if the tenancy agreement allows it.
• A bond top-up can be asked for when the rent goes up.

Where it goes wrong

• Notice given less than 60 days before the new rent starts.
• An increase that starts less than 12 months after the last one.
• An increase during a fixed term the agreement does not allow.
• An increase served after the tenancy has already been given notice to end.

Checked before it is served

Propex checks a proposed rent increase against these rules before the notice is produced, and says why when it cannot go ahead: too soon, notice too short, served too late, or not an increase at all. On the day the new rent starts, it is applied to the tenancy; if it no longer can be, the person who proposed it is told.