How Often Can Rent Be Increased NZ: The 12-Month Rule

Once Every 12 Months

Section 24(1)(d) and (e) of the Residential Tenancies Act 1986 set an absolute minimum: 12 consecutive months must pass between the tenancy start date (or the last increase's effective date) and the effective date of the next increase.

The rule is simple but the detail matters. The clock runs from the effective date — the date the higher rent actually started — not the date the notice was served.

First Increase on a New Tenancy

If a new tenancy started on 1 April 2026 at $550 per week, the first rent increase cannot take effect before 1 April 2027. You can serve the 60-day notice well before that date, as long as the stated effective date falls on or after the 12-month anniversary.

Subsequent Increases

The same 12-month interval applies. If the last increase took effect on 15 September 2026, the next increase cannot take effect before 15 September 2027.

What Does NOT Reset the Clock

Several events do not restart the 12-month timer:

• A temporary rent reduction expiring (Section 24A) — if you agreed a short-term reduction (for example, during renovations) and the rent reverts to the original amount, this does not count as a new increase and does not reset the clock
• A rent increase for substantial improvements (Section 28) — if you added a garage or improved facilities and agreed an increase with the tenant (or got a Tribunal order), the annual review clock is unaffected
• A Tribunal-ordered increase for unforeseen expenses (Section 28A) — same principle; the out-of-cycle increase is separate from the regular annual review
• A fixed-term tenancy rolling over to periodic (Section 60A) — the rent history carries over; the conversion does not create a new 12-month period

What DOES Start a New Clock

• A brand-new tenancy with entirely new tenants — new tenants = new agreement = rent set at whatever the market supports, and the 12-month clock starts from the new commencement date
• Each standard rent increase — the effective date of the new increase becomes the reference point for the next 12-month interval

Adding or removing a tenant via a variation under Section 13B preserves the existing tenancy. The clock keeps running from the previous effective date.

Can the 12-Month Rule Be Contracted Around?

No. A tenancy agreement clause that purports to allow increases every six months or on any shorter cycle is void. The 12-month minimum is a statutory protection that cannot be reduced by contract.

Before the 2020 amendment, the minimum interval was six months. The Residential Tenancies Amendment Act 2020 extended it to 12 months, effective 12 August 2020.

Practical Tip

Keep a simple log of every rent increase: the old rent, the new rent, the effective date, and the notice served date. Without clear records, you risk serving a notice that falls inside the 12-month window — which makes the notice invalid, regardless of how well the rest of the form is completed.

The Rent Increases in New Zealand guide includes a rent increase history log and a step-by-step compliance checklist that starts with the 12-month verification.

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