propetspassion Blog. 2024 Rent Increase Notice: Anticipating and Mitigating This Year’s Rise{2024}

2024 Rent Increase Notice: Anticipating and Mitigating This Year’s Rise{2024}

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2024 Rent Increase Notice: Anticipating and Mitigating This Year’s Rise{2024}

Check out this post for all the details on New Zealand’s Rent Increase Notice 2024: What’s the expected hike this year, and tips on avoiding it!

Rent Increase Notice 2024

Renting a house in New Zealand doesn’t come cheap! Whether it’s a periodic or fixed-term lease, Kiwi landlords can only bump up the rent once a year, and any reductions can only happen a year after the tenancy begins.

If your rent is on the rise, most landlords in New Zealand have to give you a heads up at least sixty days before the increase kicks in. The method of communication is usually outlined in your tenancy agreement – it could be via email, snail mail to a PO Box or letterbox, or even a hand-delivered notice.

Every year, changes in rent can be unpredictable, shaped by external economic factors. Dive into this post to get the full scoop on the Rent Increase Notice 2024 in New Zealand.

Average Rent Increase New Zealand

Rent in New Zealand is figured out on a weekly basis, often varying based on location. For a basic dwelling, you’re looking at an average weekly rent of around NZD 400. If you’re eyeing a 2-4 bedroom apartment or house, the rent typically hovers around NZD 530 per week. To put things in perspective, back in February 1993, the median weekly rent was a mere $150. Fast forward to October 2023, and the median weekly rent has surged to $580. Times are changing!

Between April 2 and April 22, sources indicate that the median rent in New Zealand skyrocketed from $200 to $550 per week. That’s an average annual growth rate of 5.19%. Looking back over the past thirty-plus years, when the data is available, rent has been climbing at an average yearly rate of 4.51%. The numbers tell quite a story of the evolving rental landscape.

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How Much Will the Rent Increase This Year?

Over the past two decades, rent prices in New Zealand have been steadily on the rise. This upward trend impacts both landlords and regular tenants, a not-so-surprising outcome given the influence of inflation.

Interestingly, New Zealand doesn’t put a legal cap on the maximum amount landlords can increase rent. While there’s flexibility, there are guidelines on how it should be carried out and what options tenants have if they disagree with the hike.

However, the increase can’t be exorbitant, aligning with the rent for comparable houses. If a landlord hasn’t made adjustments for a while, there might be leeway to legally raise it, aiming to bring the rent in line with current market values.

How to Avoid?

When it comes to a fixed-term tenancy in New Zealand, your landlord can only increase the rent if both parties agree. If tenants find themselves at odds with the regulations, they have two choices: firstly, they can turn down the proposed rent hike; secondly, if that doesn’t pan out, they can take the matter to the Tenancy Tribunal to potentially reverse the increase.

If the rent hike is substantial and would cause “serious hardship,” and the tenant couldn’t have reasonably foreseen such a large increase, they can appeal to the Tenancy Tribunal to terminate the tenancy. The Tribunal tends to lean towards tenants if it’s uncovered that landlords are asking for significantly more than what’s reasonable for comparable properties.

Final Words

Facing the reality of rent increases is never pleasant for renters, but it’s an inescapable part of the game. Landlords find themselves grappling with escalating costs due to factors like supply and demand fluctuations, maintenance, increased rates, and new ring-fencing restrictions. Unfortunately, the harsh truth is that many Kiwis’ incomes aren’t keeping pace with the upward spiral of rental expenses.

Landlords can use the Tenancy New Zealand market rent calculator to gauge local rent prices. Keeping your rental property in top-notch condition is a savvy move, allowing for gradual rent increases. Building a positive relationship with your tenants is key; enhancing their living space through improvements can make them more open to a rent hike as they witness the enhancements.

Thank you so much for sticking around on our portal and reading through this post on Rent Increase Notice 2024 until the end.

 

 

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