Rent increase

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A rent increase is an adjustment to the rent payable under a tenancy, subject to strict limits on frequency and notice under the Residential Tenancies Act.

The rules

• Once every 12 months per tenancy
• At least 60 days' written notice
• The notice must be in the correct form and correctly served
• Rent cannot be increased during a fixed term unless the agreement expressly provides for it

Challenging an increase

A tenant can apply to the Tenancy Tribunal if the increase is substantially above market rent for comparable properties in the area. The Tribunal can reduce it.

Practical points for landlords

• A defective notice is invalid, and the increase does not take effect. Wrong form, wrong period, wrong service — all fatal.
• Evidence of market rent matters if challenged. Tenancy Services publishes bond-based market rent data by area.
• Retaliatory increases are unlawful and can attract exemplary damages.

Common misunderstanding

"Once every 12 months" runs from the last increase, not from the tenancy start date or the calendar year.

Under-renting is a real cost. A property $50/week under market costs $2,600 a year, and because increases are capped at annual, catching up takes years. Review annually even if you choose not to increase.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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