We would recommend you read this post and get complete information on New Zealand’s Rent Increase Notice 2024: How Much Will the Rent Increase This Year? How to Avoid?
Rent Increase Notice 2024
In New Zealand, house rentals are not cheap! In both periodic and fixed-term leases, landlords in New Zealand are only permitted to raise rent a single time every year. Reductions must occur at least a year after the tenancy begins.
For rent hikes, most landlords in New Zealand are required to give written notice at least sixty days in advance. The tenancy agreement specifies the method of communication that must be used to provide the written notice. You might send this by email, mail it in a PO Box or letterbox, or deliver it by hand.
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Every year, rental increases vary and are influenced by external economic factors. In this post, you will get complete details about Rent Increase Notice 2024 in New Zealand.
Average Rent Increase New Zealand
In New Zealand, rent is calculated on a weekly basis and is mostly location-specific. Approximately NZD 400 is the weekly average rent for a modest residence in New Zealand, while NZD 530 is the rent for an apartment or house with 2-4 bedrooms. The median weekly rent in New Zealand in February 1993 was $150. However, the median weekly rent as of October 2023 was $580.
Some sources state that between April 02 and April 22, the median rent in New Zealand increased from $200 to $550 per week. This translates to a 5.19% annual growth on average. When data is available, rent increases over the past thirty plus years have averaged 4.51% yearly.
How Much Will the Rent Increase This Year?
Rent costs in New Zealand have been steadily rising over the last 20 years or so. In New Zealand, both landlords and regular tenants are impacted by a sharp increase in prices, even if this is to be expected given inflation.
In New Zealand, there are no legal restrictions on the maximum amount of rent increases permitted by your landlord. It does specify how it needs to be done and what the renter may do in the event that they object to the increased rent.
The increase, however, cannot be much more than what a renter might rent for comparable houses. In order to bring the rent back to market value, a landlord may be able to legally raise it significantly if they haven’t raised it in a while.
How to Avoid?
Your landlord may only raise the rent on a fixed-term tenancy if both of you agree to it. Tenants who violate the regulations have two options: first, they can reject the rent increase; second, if that doesn’t succeed, they can appeal to the Tenancy Tribunal to have the increase reversed.
You can appeal to the Tenancy Tribunal to terminate the tenancy if the increase is significant, will put you through “serious hardship,” and you could not have reasonably anticipated that it would be that large. Tenancy Tribunal decisions will favor tenants if it is discovered that landlords are asking substantially more than for comparable premises.
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Final Words
Rent increases are an unavoidable reality, even though no renter wants to pay more. Landlord expenditures are rising because to factors such as fluctuating supply and demand, upkeep, higher rates, and new ring-fencing restrictions. But many Kiwis’ incomes aren’t keeping up with the rising cost of rent.
Using the Tenancy New Zealand market rent calculator, landlords may assess local rent prices in comparison. Maintaining your rental property to a high quality is a smart idea, and it will enable you to raise the rent gradually. Developing a strong rapport with your tenants might be achieved in this way. Your renters will be more receptive to a rent increase if you make their living area better since they can see the improvements.
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