NZ Rent Increase Fixed Term Tenancy: Review Clauses and Periodic Conversion

The Default: No Increase During a Fixed Term

Under Section 24(1)(g) of the Residential Tenancies Act 1986, a landlord cannot increase rent during a fixed-term tenancy unless the written tenancy agreement expressly permits it. If the agreement is silent on rent reviews, the rent stays fixed for the entire duration of the term.

This catches landlords who signed a 12- or 24-month fixed-term agreement without checking whether a review clause was included. Without that clause, there is no legal mechanism to increase the rent until the term ends.

Rent Review Clauses: Provision A and Provision B

Schedule 1 of the RTA sets out two standard rent review clauses that can be included in a fixed-term agreement:

Provision A: permits the landlord to review the rent from time to time, with changes taking effect no less than 12 months from the commencement date (or the last increase), subject to 60 days' written notice.

Provision B: permits the landlord to review the rent on a specified recurring annual date, subject to 60 days' prior written notice.

Both clauses still require compliance with the full Section 24 procedure — the 12-month minimum interval and 60 days' notice. A custom clause that tries to allow increases every six months or with less than 60 days' notice is void and unenforceable.

How to Check Your Agreement

Open the tenancy agreement and look for:

1. A clause headed "Rent Review" or "Rent Increase"
2. Reference to Provision A or Provision B from Schedule 1
3. Any other clause that expressly permits rent adjustment during the term

If the agreement uses the standard MBIE template, the rent review section is typically near the bond and rent payment terms. If no review clause exists, the rent is locked for the term.

What Happens When the Fixed Term Ends

When a fixed-term tenancy expires, it automatically converts to a periodic tenancy under Section 60A — unless the landlord or tenant has given notice to end it, or a new fixed-term agreement is signed.

The conversion to periodic is treated as a continuation of the same tenancy, not a new one. This means:

• The rent history carries over — the 12-month clock runs from the last increase (or the commencement date), not from the date the tenancy became periodic
• The landlord can now increase the rent under the standard periodic rules (60 days' notice, 12-month interval) without needing a review clause
• Any existing rent amount continues at the rate that was in force when the fixed term ended

Common Scenario: 12-Month Fixed Term With No Clause

A landlord signs a 12-month fixed-term tenancy on 1 March 2026 at $500/week. The agreement has no rent review clause. On 1 March 2027, the tenancy rolls over to periodic.

The landlord can now serve a rent increase notice with 60 days' written notice. The earliest effective date is 12 months from the tenancy start (1 March 2027), and the notice must be served at least 60 days before that — so by late December 2026 at the latest (accounting for service buffer days).

In practice, many landlords in this position serve the notice shortly before the fixed term expires, with the effective date aligned to the first month of the periodic tenancy.

Renewing a Fixed Term vs Converting to Periodic

If both parties sign a new fixed-term agreement at the end of the first term, the tenancy history is preserved. Any rent increase still has to comply with the 12-month rule — a renewal does not reset the clock.

Restructuring a tenancy to evade the statutory frequency protections is an unlawful act under Schedule 1A, with penalties.

The Takeaway

Check the agreement before you serve notice. If a review clause exists, follow it and the Section 24 procedure. If not, wait for the fixed term to end and increase under periodic rules. The Rent Increases in New Zealand guide includes a fixed-term clause decision checklist that walks through this verification step by step.

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