Rent increase timing
Question from sam updated on 15th January 2016:
Just a quick question regarding this: "Landlords can only increase rent after the first 180 days of the tenancy."
Does this mean the 60 days notice period needs to be served on day 181? Or does it mean the 60 day notice period can be given on day 121, with the increase taking effect on day 181 of the tenancy?
Our expert Craig Ironside responded:
Under the Residential Tenancies Act, landlords can increase the rent by giving a minimum of 60 day’s written notice of the increase, or a minimum of 28 days’ written notice in the case of a boarding house tenancy. In the case of a fixed-term tenancy (a tenancy with an agreed start and finish date), there must be a provision in the tenancy agreement allowing the rent to be increased during the term of the tenancy. Any such notice cannot take effect within 180 days of the start of the tenancy, or within 180 days of the last rent increase.
A notice may be given at any time providing the actual increase does not come into effect within the time-frames stated above. For example, a landlord may serve 60 days’ written notice on day 121 of the tenancy, which will take effect on day 181 of the tenancy. The landlord does not have to wait until day 180 to serve the notice. However, the notice cannot come into effect within that time frame.
Information regarding rent increases and service times that need to be applied, and a copy of a letter that can be used to notify the tenants of an increase in the rent, can be viewed at https://www.tenancy.govt.nz/rent-bond-and-bills/rent/increasing-rent/.
If you need any further assistance or advice please visit our website at www.tenancy.govt.nz or call our Tenancy Advice line on 0800 TENANCY (0800 836 262).
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