Rent Increase Rules NZ 2026: Your Legal Compliance Guide
Under the Residential Tenancies Act 1986 (RTA), specifically section 24, landlords in New Zealand must follow strict rules when increasing rent. This guide covers the current law as of April 2026, including the 12-month rule, 60-day written notice requirements, how to determine market rent, and the process for challenging an increase at the Tenancy Tribunal.
Key Rules at a Glance
- 12-month rule: Rent cannot be increased more than once every 12 months (RTA s24(1)).
- 60 days written notice: Landlord must give at least 60 days' written notice before the increase takes effect (RTA s24(2)).
- Market rent only: The new rent must be comparable to similar properties in the area (RTA s24(3)).
- No increase during fixed term: Unless the tenancy agreement allows it (RTA s24(4)).
1. The 12-Month Rule (RTA s24(1))
Under section 24(1) of the RTA, a landlord cannot increase the rent more than once in any 12-month period. This applies to both periodic and fixed-term tenancies. The 12-month period is calculated from the date the last increase took effect, not from the date of notice. For example, if you increased rent on 1 March 2025, the next increase cannot take effect before 1 March 2026.
2. 60 Days Written Notice (RTA s24(2))
Section 24(2) requires the landlord to give the tenant at least 60 days' written notice of the proposed increase. The notice must:
- Be in writing (email or physical letter).
- State the new rent amount and the date it will take effect.
- Be served at least 60 days before the effective date.
- Comply with the 12-month rule (i.e., no increase within 12 months of the last one).
If the notice is less than 60 days, it is invalid. The tenant can refuse to pay the increase until the correct notice period is met.
3. Market Rent Definition (RTA s24(3))
Section 24(3) states that the rent must be no more than market rent for similar properties in the same area. Market rent is defined as the amount a willing landlord and willing tenant would agree on, considering:
- Location, size, and condition of the property.
- Number of bedrooms and bathrooms.
- Amenities (e.g., parking, garden, heating).
- Recent comparable rentals in the area.
Landlords should use objective evidence, such as rental appraisals or market reports, to justify the increase. If the rent is deemed excessive, the Tenancy Tribunal can reduce it.
4. Tenancy Tribunal Challenge Process
If a tenant believes a rent increase is excessive or invalid, they can apply to the Tenancy Tribunal under section 25 of the RTA. The process is:
- Step 1 – Talk to the landlord: Attempt to resolve the issue informally. The tenant can request evidence of market rent.
- Step 2 – Apply to the Tribunal: File an application with the Tenancy Tribunal (fee applies, but may be waived for low-income tenants). The application must be made within 28 days of receiving the increase notice.
- Step 3 – Mediation: The Tribunal may refer the case to mediation first. If no agreement is reached, a hearing is scheduled.
- Step 4 – Hearing: Both parties present evidence. The Tribunal can confirm, vary, or cancel the increase. If the rent is found to be above market, the Tribunal can order a reduction and refund of any overpaid rent.
Important: The tenant must continue paying the current rent until the Tribunal makes a decision. They cannot withhold rent.
5. Special Rules for Fixed-Term Tenancies
Under section 24(4), rent cannot be increased during a fixed-term tenancy unless the tenancy agreement expressly allows it. If the agreement is silent, the landlord must wait until the fixed term ends and the tenancy becomes periodic. Even then, the 12-month rule applies from the last increase.
6. 2026 Updates and Compliance Tips
As of April 2026, no major amendments to s24 have been enacted. However, landlords should note:
- The Healthy Homes Standards (introduced 2024) may affect market rent if the property is non-compliant.
- Tenants can request a rent review if the property deteriorates.
- Always keep written records of notices and market evidence.
Common Mistakes to Avoid
- ❌ Increasing rent within 12 months of the last increase.
- ❌ Giving less than 60 days' notice.
- ❌ Increasing rent during a fixed term without a clause.
- ❌ Setting rent above market without evidence.
7. Frequently Asked Questions
Can I increase rent if the tenant is on a benefit?
Yes, but you must still follow the same rules. The Tenancy Tribunal can reduce the increase if it is above market rent.
What if the tenant refuses to pay the increase?
The tenant must pay the current rent until the increase takes effect. If they refuse after the effective date, you can apply to the Tenancy Tribunal for arrears.
Can I increase rent for a new tenant?
Yes, the 12-month rule applies only to existing tenancies. A new tenancy can start at any rent agreed upon.
Need to manage your tenancy?
Use our online portal to generate compliant rent increase notices, track deadlines, and access Tenancy Tribunal forms.
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Frequently asked questions
How often can a landlord increase rent in NZ?
Under RTA s24(1), rent can only be increased once every 12 months. The 12-month period is calculated from the date the last increase took effect.
How much notice is required for a rent increase?
The landlord must give at least 60 days' written notice before the increase takes effect (RTA s24(2)). The notice must state the new rent and effective date.
Can a tenant challenge a rent increase?
Yes. A tenant can apply to the Tenancy Tribunal under RTA s25 within 28 days of receiving the notice. The Tribunal can reduce the increase if it is above market rent.
What is market rent in NZ?
Market rent is the amount a willing landlord and tenant would agree on for a similar property in the same area, considering location, size, condition, and amenities (RTA s24(3)).
Can rent be increased during a fixed-term tenancy?
Only if the tenancy agreement expressly allows it (RTA s24(4)). Otherwise, the landlord must wait until the fixed term ends and the tenancy becomes periodic.