Rent Increase Rules NZ: The 12-Month and 60-Day Rules Explained

The Two Rules That Govern Every Rent Increase

Section 24 of the Residential Tenancies Act 1986 sets two non-negotiable conditions for any rent increase in New Zealand:

1. 12-month minimum interval — rent cannot increase within 12 months of either the tenancy start date or the date the last increase took effect.
2. 60 days' written notice — the landlord must serve written notice stating the new rent and effective date at least 60 calendar days before the new rent starts (Section 24(1)(a)–(c)).

Break either rule and the notice is legally invalid. The tenant can ignore it and keep paying the old rent.

How the 12-Month Rule Works

The clock runs from the effective date of the last increase, not the date the notice was served. If your last increase took effect on 15 March 2026, the earliest your next increase can take effect is 15 March 2027 — regardless of when you send the notice.

The same rule applies to the first increase on a new tenancy. If the tenancy started on 1 June 2026, the first increase cannot take effect before 1 June 2027.

Events that do not reset the 12-month clock:

• A temporary rent reduction expiring under Section 24A
• A rent increase for substantial property improvements under Section 28
• A Tribunal-ordered increase for unforeseen expenses under Section 28A
• A fixed-term tenancy rolling over to periodic under Section 60A

The 60-Day Notice Period

The 60-day count uses calendar days (not working days), starting the day after the tenant is deemed to have received the notice. Deemed receipt depends on the delivery method:

• Hand delivery: same day
• Email (if the tenancy agreement allows electronic service; sent before 5 PM on a working day): same day
• Email (if the tenancy agreement allows electronic service; sent after 5 PM or on a non-working day): next working day
• Letterbox or door attachment: 2 working days after
• Post: 4 working days after posting

Working days exclude weekends and public holidays (including provincial anniversary days). The distinction matters: service buffer days are working days, but the 60-day notice period itself is calendar days.

What Changed in 2024

The Residential Tenancies Amendment Act 2024 (enacted 17 December 2024, with provisions commencing in stages from 30 January 2025) updated several tenancy rules, but the core rent increase mechanics stayed the same. The 12-month minimum interval and 60-day notice period under Section 24 were not changed.

What did change:

• Termination notices: 90-day no-cause termination for periodic tenancies was reinstated (30 January 2025)
• Notice modernisation: updated service delivery mechanics (20 March 2025)
• Pet bonds: statutory pet bond framework took effect 1 December 2025

Media coverage of these changes created confusion between termination rules and rent increase rules. The rent increase rules have been stable since the 2020 amendment extended the frequency from six months to 12 months.

Fixed-Term Tenancies: An Extra Rule

Under Section 24(1)(g), a fixed-term tenancy cannot have a rent increase during the term unless the written tenancy agreement contains an express rent review clause. If the agreement is silent on rent reviews, the rent stays fixed for the entire term.

The standard review clauses (Provision A and Provision B in Schedule 1 of the RTA) allow annual reviews with 60 days' notice. A clause that purports to allow more frequent increases or shorter notice is void.

What Happens If the Notice Is Invalid

An invalid notice does not oblige the tenant to pay more. If you discover the error, you can:

• Serve a fresh Form T190 notice with a full new 60-day notice period
• Get the tenant's written agreement to correct the effective date
• Apply to the Tenancy Tribunal for an order validating or extending the notice

Do not treat the unpaid increase as rent arrears — a defective notice gives the tenant a valid defence if you attempt to terminate the tenancy over the shortfall.

The Full Process

The rules are straightforward, but the practical execution — counting service buffer days around public holidays, checking fixed-term clauses, aligning the effective date with the payment cycle — is where mistakes happen. The Rent Increases in New Zealand guide sets out the full process with a service buffer worksheet and a compliance checklist dated to the current rules.

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