RTA Sections 24 and 25: Rent Increase Law NZ Explained

The Two Sections That Control Rent Increases

All rent increase rules for private residential tenancies in New Zealand flow from two sections of the Residential Tenancies Act 1986:

• Section 24 sets the conditions a landlord must meet before increasing rent
• Section 25 gives tenants the right to challenge the rent amount at the Tenancy Tribunal

Everything else — the notice form, the service rules, the bond top-up — connects back to these two sections.

Section 24: The Conditions for Increasing Rent

Section 24(1) lists the requirements:

(a) and (b) Written notice and details: the landlord must give written notice of the increase, specifying the new rent amount and the day it becomes payable.

(d) and (e) 12-month interval: rent cannot increase within 12 months of the tenancy commencement date or the date the last increase took effect.

(c) 60 days' notice: the increase must take effect at least 60 days after notice is given. For boarding house tenancies, Section 24(1)(c) sets the minimum at 28 days.

(g) Fixed-term restriction: during a fixed-term tenancy, rent cannot be increased unless the written agreement expressly permits it (with a rent review clause).

(h) Tribunal order: while a Section 25 market rent order remains in force, rent cannot be increased above the amount specified in the order.

A notice that fails any of these conditions is invalid and has no legal effect.

Section 25: The Market Rent Challenge

Section 25 allows a tenant to apply to the Tenancy Tribunal if the rent "substantially exceeds" market rent for comparable premises in the same locality.

Under Section 25(3), market rent is defined as what a willing landlord might reasonably expect to receive and a willing tenant might reasonably expect to pay, considering the condition and facilities of the property and local rental trends. Personal circumstances are excluded.

If the Tribunal agrees the rent is excessive, it can order a reduction under Section 25(4). The order typically lasts 12 months. Under Section 27, any rent collected above the ordered amount is irrecoverable.

There is no percentage cap on increases — Section 25's "substantially exceeds" test is the only constraint on the amount.

Related Sections

Section 24A — covers the expiry of temporary rent reductions. When a negotiated reduction ends and rent reverts to the base rate, this is not treated as a new increase and does not reset the 12-month clock.

Section 28 — allows an out-of-cycle rent increase for substantial property improvements (not routine maintenance), by written agreement or Tribunal order. Does not reset the annual review clock.

Section 28A — allows the Tribunal to order an out-of-cycle increase for unforeseen expenses. Requires a formal application; the landlord cannot act unilaterally.

Section 136 — prescribes the service delivery methods for notices and the deemed receipt dates.

Section 136A — sets the rules for calculating working days and calendar days in notice periods.

Schedule 1 — contains the standard rent review clauses (Provision A and Provision B) for fixed-term tenancies.

Schedule 1A — lists the maximum exemplary damages for unlawful acts, including demanding bond above the 4-week limit ($1,500), requiring advance rent above 2 weeks ($1,500), and rent bidding ($1,500).

The 2024 Amendments

The Residential Tenancies Amendment Act 2024 (enacted 17 December 2024) made changes to termination notices, service rules, and pet bonds. The rent increase mechanics under Section 24 were not changed. The 12-month interval and 60-day notice period remain as set by the 2020 amendment.

Key 2024 changes that affect landlords but are not rent-specific:

• 30 January 2025: 90-day no-cause termination notices reinstated for periodic tenancies
• 20 March 2025: modernised notice delivery mechanics
• 1 December 2025: pet bond provisions (up to 2 weeks' rent) took effect

When media covers "tenancy law changes," it is usually these provisions — not rent increase rules. The core rent framework has been stable since the 2020 amendment extended the frequency from six months to 12 months.

Reading the Act

The full text of the Residential Tenancies Act 1986 is free at legislation.govt.nz. Tenancy Services at tenancy.govt.nz publishes plain-language guidance on each section, along with the official Form T190 notice template.

For a practical step-by-step walkthrough of how Sections 24 and 25 apply to an actual rent increase — from checking the 12-month rule through serving notice to handling a market rent challenge — see the Rent Increases in New Zealand guide.

See more New Zealand guides →