Rent Increase Notice (New Zealand)

A Rent Increase Notice in New Zealand gives the formal written notice required to end a tenancy and states the move-out date and grounds relied upon, in the form required by the Property Law Act 2007.

The Residential Tenancies Act 1986 imposes two primary restrictions on rent increases in New Zealand. First, a landlord must give the tenant at least 60 days' written notice before a rent increase takes effect. This notice period was extended from 42 days to 60 days by the Residential Tenancies Amendment Act 2020, giving tenants more time to assess the new rent and, if necessary, find alternative accommodation. The notice must be in writing and must state the new rent amount and the date from which it takes effect. Second, a landlord may only increase the rent once in any 12-month period, calculated from the date of the last rent increase or, if there has been no previous increase, from the commencement of the tenancy.

The Tenancy Tribunal, established under Part 3 of the RTA, has jurisdiction to hear applications by tenants who believe a rent increase is excessive or does not comply with the Act. The Tribunal considers the market rent for comparable properties in the area when assessing whether an increase is excessive. If the Tribunal finds an increase is excessive, it may set the rent at the market rent level. Applications to the Tribunal can be made through the Tenancy Services website (tenancy.govt.nz) or at any District Court registry. Free mediation services are also available through Tenancy Services (a division of the Ministry of Business, Innovation and Employment) as an alternative to a formal Tribunal hearing.

A compliant rent increase notice under the RTA must include the current rent amount, the new rent amount, the effective date of the increase (at least 60 days from the date of service), and the date on which the notice is given. While the Act does not require the landlord to provide a reason for the increase, including a brief explanation — such as rising rates, insurance premiums, maintenance costs, or market rent comparisons — can help maintain a positive relationship with the tenant and reduce the likelihood of a dispute or Tribunal application.

The notice must be served on the tenant in accordance with the service provisions of the RTA. Personal delivery, post (allowing additional days for postal delivery under the Interpretation Act 1999), or email (if the tenant has consented to receive notices electronically) are all acceptable methods of service. An oral or verbal notice of a rent increase does not satisfy the statutory requirements of section 24 of the RTA. If the landlord gives less than 60 days' notice, the effective date of the increase is automatically delayed until 60 days after the notice was properly served, which protects tenants from short-notice rent hikes.

The rent increase restrictions apply equally to fixed-term and periodic tenancies in New Zealand. For fixed-term tenancies, the landlord can only increase the rent during the fixed term if the tenancy agreement contains a rent review clause that permits increases, and the 60-day notice and 12-month restrictions still apply. At the expiry of a fixed-term tenancy (when it converts to a periodic tenancy), the landlord may serve a rent increase notice with the required 60 days' notice and in compliance with the 12-month rule.

A Rent Increase Notice is required whenever a landlord wishes to increase the rent for a residential tenancy in New Zealand. Under section 24 of the Residential Tenancies Act 1986, a landlord cannot simply increase the rent without proper written notice — doing so would be unlawful and the purported increase would have no effect. Any increase in rent that is not accompanied by a compliant written notice at least 60 days before the effective date is void, meaning the tenant is entitled to continue paying the old rent amount until a proper notice is served.

You need to use a rent increase notice in all of the following situations: when the current rent has not been increased for at least 12 months and you wish to bring the rent in line with market rates; when operating costs for the property (such as rates, insurance premiums, maintenance costs, or mortgage payments) have increased and you need to adjust the rent to reflect those costs; when a fixed-term tenancy is coming to an end and you wish to increase the rent when the tenancy converts to a periodic arrangement; when a new tenant has taken over an existing tenancy and you wish to adjust the rent to market levels (subject to the 12-month rule); or when you have conducted a market rent review and determined that the current rent is below the going rate for comparable properties in the area.

The notice must be given separately from any other notices or communications — a rent increase cannot be tucked into a routine email or incorporated into a lease renewal letter. The notice must clearly state the current rent, the new rent, and the effective date, and must be served at least 60 days before the new rent takes effect. If the notice does not satisfy all the statutory requirements, it will not be effective and the landlord will need to serve a fresh notice.

A rent increase notice is particularly important for landlords who use property management companies, as the property manager must confirm that the notice complies with section 24 of the RTA and that the 12-month restriction has been properly observed before issuing the notice. Landlords who manage their own properties should keep records of the date of each rent increase notice, the amount of the increase, and the effective date, to confirm they do not breach the 12-month restriction.

The notice is also important for tenants who receive it, as it triggers their right to apply to the Tenancy Tribunal if they believe the increase is excessive or does not comply with the Act. Tenants who do not exercise this right within the applicable time limits may lose their ability to challenge the increase. For this reason, the notice should clearly inform the tenant of their right to apply to the Tenancy Tribunal and the availability of free mediation services through Tenancy Services (MBIE).

A legally compliant Rent Increase Notice for New Zealand must contain certain key elements to satisfy the requirements of section 24 of the Residential Tenancies Act 1986 and to effectively communicate the change to the tenant.

The parties and property section must correctly identify the landlord (including any authorised property manager) and all tenants by their full legal names, and must state the full address of the rental premises. If there are multiple tenants, all names listed in the tenancy agreement should be included as addressees. The property address should include the unit number (if applicable), street address, suburb, city, and postcode, to confirm there is no ambiguity about which property is affected by the increase.

The rent details section is the core of the notice and must include: (1) the current rent amount and payment frequency (weekly, fortnightly, or monthly); (2) the new rent amount at the same payment frequency; and (3) the effective date from which the new rent is payable. The effective date must be at least 60 days from the date the notice is served on the tenant. The notice should also record the date of the last rent increase (or the commencement date of the tenancy if there has been no previous increase) to demonstrate that the 12-month interval has been observed.

The notice date section records when the notice is issued and served. This is important because it establishes the start of the 60-day notice period. If the notice is sent by post, allowance must be made for postal delivery time under the Interpretation Act 1999 (generally 3 to 7 working days depending on the destination). If notice is sent by email, the email must be sent to an address the tenant has previously consented to use for receiving notices.

The reason for increase (while optional) is good practice and should briefly explain why the rent is being increased — for example, increased operating costs, rates, insurance, maintenance expenditure, or alignment with current market rents. Including a reason demonstrates transparency and may reduce the likelihood of the tenant challenging the increase before the Tenancy Tribunal.

The statutory compliance statement is an important element that confirms the notice complies with section 24 of the RTA, that at least 60 days' notice is being given, and that the 12-month interval has been observed since the last rent increase or tenancy commencement. This statement protects the landlord by demonstrating that the notice was issued in good faith and in compliance with the law.

The payment instructions section should confirm how rent should be paid after the increase takes effect, including the payment method and the landlord's bank account details. This avoids any confusion about where the new rent should be directed.

Finally, the tenant rights section must inform the tenant of their right to apply to the Tenancy Tribunal if they believe the increase is excessive or does not comply with the RTA. This section should also mention the availability of free mediation services through Tenancy Services (MBIE) and advise the tenant to seek advice from Citizens Advice Bureau or a community law centre if they are unsure about their rights. The notice should include signature lines for the landlord and an acknowledgment of receipt by the tenant. The forms-legal.com Rent Increase Notice (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.