Wondering when the time is right to raise the rent of your Auckland rental
property? How much can you raise your rent to? Our experienced property managers discuss when
you can and can’t raise the rent, plus how to find out what the rental increase should be.
As a landlord, the rent your tenant pays is your income. You use it to pay your rental’s insurance,
rates, water, mortgage and maintenance costs. Hopefully there is some left after all that for a bit of
profit too! The problem is, if you don’t have an experienced Auckland property manager, you’re
floundering in the dark when it comes to market rents. How much should your rent be? When is the
right time to raise the rent? How much can you raise the rent by? Let’s find out …
When Can I Raise the Rent?
As a landlord, the rent is first set when the tenant signs the tenancy agreement. However, when it
comes to raising it, there are a few things you need to remember:
You can’t increase the rent within the first 180 days of the start of the tenancy or within 180
days of the last rent increase
You must give the tenant at least 60 days’ notice that the rent is rising. This must be in
writing and state how much the rent is increasing by and when the rise takes effect.
If it is a fixed term tenancy, it can only be raised if the agreement allows
However, you can raise it within the 180-day period if both you and the tenant have agreed to it and
you have:
Improved the amenities that tenant has access to
Improved the property which has resulted in an increase in the property’s value
Changed the tenancy agreement, but only for the tenant’s benefit
Finally, you can also apply to the Tenancy Tribunal to increase the rent within the 180-day period if
you have experienced unforeseen circumstances after the last rent increase.
How Much Can I Raise the Rent By?
This is when your property manager is gold! They should be regularly reviewing your rent every six
to twelve months to give you the maximum return possible on your rental. A smaller rise more often
is more manageable than large ones every couple of years. It also means you are more likely to
retain a good tenant.
In regard to the rental rise, you should be looking at what other comparable residential rental
properties are listed for. The current market rate sets the amount you are likely to get for your
rental and it is illegal to charge higher than the market rent. Generally, a 3-5% increase per year is
average, but this will depend on your property and the current market.
We’ve been in the Auckland property management industry for many years. We’ve got the
experience and the knowledge to help our landlords obtain the maximum rental and profit from
their properties. For a free rental appraisal of your rental, simply get in touch and one of our
property managers will be in touch ASAP.
Comments are closed.