When (and How) Should You Increase the Rent on Your Rental?
Quick answer: In New Zealand, you can increase rent once every 12 months, with at least 60 days’ written notice. There’s no legal cap, but the new rent needs to hold up against the market. And for most Christchurch landlords, the bigger risk isn’t raising the rent. It’s never reviewing it.
Most landlords are comfortable talking about pricing when a property goes to market. The conversation they avoid is the one with a tenant already in place. Rent reviews feel awkward, so they get skipped. And a skipped review quietly costs more than almost any other pricing decision you’ll make.
The rules in plain English
Rent increases in New Zealand are governed by the Residential Tenancies Act, and the rules are simpler than most landlords expect:
Once every 12 months - the 12 months runs from the date the last increase took effect (or from the start of the tenancy), not from when you give notice.
60 days’ written notice, minimum - the notice must be in writing, state the new rent, and state the date it takes effect. A conversation at the letterbox doesn’t count. You can serve notice before the 12-month mark, as long as the increase itself takes effect after it.
No cap, but a market test - the law doesn’t limit how much rent can increase by. It does give tenants the right to challenge an increase they believe is above market rent, through Tenancy Services and ultimately the Tenancy Tribunal. Which is exactly why the number needs evidence behind it.
Fixed-term tenancies - rent can only be increased during a fixed term if the tenancy agreement specifically allows it.
The real cost of never reviewing
In our recent article on pricing your Christchurch rental , we showed that a $20/week under-pricing compounds to $1,040 a year. The same maths applies to a sitting tenancy, with one difference: drift gets worse every year you leave it.
A rent set in 2023 and never touched isn’t 5% below market. By now it could be 10–15% below, because Christchurch medians have kept moving while your number stood still. And today’s rent sets the baseline for every future negotiation: the further it drifts, the harder the correction becomes, for you and for your tenant.
Most landlords don’t skip reviews because they’ve run the numbers. They skip them because the conversation feels uncomfortable.
How to raise rent without losing a good tenant
A fair, well-evidenced increase rarely loses a good tenant. An unexplained one can. Three things make the difference:
Lead with evidence, not gut feel - comparable listings from the last 30 days, suburb medians for your property type, days-on-market in your area. When the number is clearly the market’s number rather than the landlord’s, the conversation changes completely.
Give fair notice and frame it properly - 60 days is the legal minimum, not the gold standard. Pairing the notice with a short explanation of what comparable properties are renting for shows respect, and respect is what keeps good tenants in place.
Weigh tenant quality against the last $10–20/week - a reliable, long-term tenant at $600/week is almost always a better outcome than a marginal applicant at $620. If your tenant looks after the property and pays on time, price the relationship, not just the room count.
What if the rent is well below market?
If the gap is around 5%, a single adjustment at the next review usually makes sense, clearly explained and well evidenced.
If the rent has drifted 10–15% below market, a one-step correction can feel like a shock even when it’s justified. In those cases we often recommend stepping the increase over two annual reviews, and being upfront with the tenant about the destination. You trade a little short-term income for a much better chance of keeping a tenant you value, and a rental history that shows steady, defensible pricing rather than long freezes and sharp jumps.
Timing helps too. A rent review lands better alongside a renewal conversation, when both sides are already thinking about the year ahead.
How we handle rent reviews at Birds Nest
Every property we manage gets an annual, evidence-based rent review. We pull current comparables, check days-on-market for the suburb, weigh tenant quality, and recommend a number we can stand behind. Then we handle the notice and the conversation, so you never have to.
Your rent stays at market. Your tenant gets a fair, well-explained process. And the awkward conversation stops being yours to have.
Wondering if your rent has drifted? Contact us for a free, no-obligation rental appraisal.
