When Can Landlords Increase Rent on Investment Properties?

25 March 2019

You can increase the rent you charge on your investment property regularly to achieve the highest possible return on your investment. This extra income will help cover the regular repair and maintenance costs incurred by the property. To legally increase the rent on investment properties, however, landlords must follow a process that is set out in New Zealand law.

When Can Landlords Increase Rent?

Landlords can increase rent in tenancy agreements provided that the agreement permits this.

In most cases, an increase is permitted provided that it has been at least 180 days since the initial agreement came into effect and at least 180 days since the last rent increase. Thus, most landlords can raise rent about twice a year if they choose to and the market will bear it.

However, there are exceptions to the 180-day rule. Landlords can increase rent within this window if they meet one of the following three conditions:

  • The landlord has made improvements to the property that add benefits and value for the tenant;
  • The landlord has improved facilities for the tenant (beyond routine maintenance);
  • The landlord has altered the tenancy agreement to the benefit of the tenant.

When increasing rent, landlords can also ask tenants to increase their bond by a proportionate amount. The bond increase must be for the same number of weeks’ rent as previously agreed.

What is the Process for Increasing Rent?

When increasing rent, landlords must first provide tenants with written notice of the increase. Boarding houses must notify tenants at last 28 days before the proposed rental increase, and tenants of all other building types must receive a minimum of 60 days’ notice.

Should a tenant refuse a written notice or the notice be sent improperly, landlords may serve a notice again and ask the tenant to extend the notice timeframe or they may apply to the Tenancy Tribunal for an extension of the notice timeframe.

By How Much Can Landlords Increase Rent?

There is no legislation in New Zealand that limits rental increases by landlords. However, New Zealand law does say how rental increases must be carried out and what the tenant can do if they don’t agree with the new rental amount.  For more information, please visit https://www.tenancy.govt.nz/rent-bond-and-bills/rent/increasing-rent/

For assistance with increasing rents in tenancy agreements or managing other aspects of your investment property, contact Sole Agents at 09-375 1488, we are happy to assist you.


Sole Agents Ltd. All rights reserved.

Information provided above is for general reference only. While every effort is made to ensure accuracy, Sole Agents Ltd disclaims any liability for any loss or damage whats0ever that may arise whether directly or indirectly as a result of any error, inaccuracy or omission.