Increasing Rents

From the MBIE site:

Landlords decide how much to increase the rent

The law doesn’t limit the amount of a rent increase, but does say how it must be done, and what can be done if the tenant doesn’t agree with the new rent amount.

If a landlord is charging significantly more than for other similar properties, the Tenancy Tribunal could make an order for it to be reduced. The tenant will need to provide evidence that their rent is substantially higher than rent for other houses in the area similar to the one they’re renting.

A landlord and tenant can agree to an increase of the rent (outside of the usual 180-day period) if the landlord has:

  • improved the property, which increases its value and benefits the tenant
  • improved facilities or services provided to the tenant
  • changed the tenancy agreement to benefit the tenant.

A landlord or a tenant may apply to the Tenancy Tribunal to review the rent increase if:

  • the tenant doesn’t agree to increase the rent when the landlord has improved the property or changed the tenancy agreement to benefit the tenant
  • the landlord has had unforeseen expenses since the rent was last increased.

If the Tenancy Tribunal increases the rent for these reasons, this doesn’t change the date the rent is normally reviewed or increased by the landlord.

Landlords and tenants should keep in contact with each other and discuss any possible changes to the amount of rent at an early stage.

Jonette 2011