Wellington Landlord News & Property Management Updates

By Dave McCarry | 15 July 2026

How to Increase Rent in Wellington: The Process Wellington Landlords Need to Know

Wellington's rental market has been through a turbulent 18 months. Rents fell, vacancies climbed, and many landlords held off on rent reviews to keep good tenants in place. That was often the right call. But the market is recovering: tenant enquiries are up 16 per cent year-on-year, and well-priced Wellington properties are now leasing in 14 to 21 days.

If you haven't reviewed your rent in a while, now is a reasonable time to consider whether your current rate reflects what comparable properties are actually getting in your suburb. The process matters, though. A notice that doesn't follow the rules under the Residential Tenancies Act 1986 is invalid, which means your increase doesn't take effect when you intended, and you're back to square one with no increase and no revenue gain until you serve a new notice and wait the full period again.

This is one of the most common questions Wellington landlords bring to me, particularly after holding rents flat for a year or more. Here's exactly how the process works.

The Two Rules Every Landlord Needs to Know

The 12-month rule

You can only increase rent once every 12 months. The clock runs from the date your last increase took effect, not from when you gave the previous notice. If you've never increased the rent, the 12-month period starts from the date the tenancy began.

If your last increase took effect on 1 February 2025, for example, the earliest a new increase can take effect is 1 February 2026. You can give written notice before that anniversary, as long as the effective date in the notice falls on or after the 12-month mark.

One exception: if you've made improvements to the property that increase its value for the tenant, both parties can agree to a rent increase outside the 12-month window. This needs to be a genuine, bilateral agreement, not pressure from one side.

The 60-day notice requirement

You must give at least 60 days written notice before the rent increase takes effect. The 60 days is calculated from the date your tenant receives the notice, not the date you write it or drop it in the letterbox.

This distinction matters more than most landlords realise. If you post the notice within New Zealand, the Residential Tenancies Act deems it received seven working days after posting. Those seven working days are added to your timeline before the 60-day period even starts. If you post a notice on Monday 14 July, deemed receipt is Monday 25 July (adding seven working days). Your 60 days runs from 25 July, meaning the earliest your increase can take effect is Sunday 23 September.

If you hand-deliver the notice, it's received that same day and you count 60 days from there. Email works if email is an agreed method of communication in your tenancy.

Getting this calculation wrong is the most common mistake I see from landlords who process their own rent increases. If the notice doesn't give the full 60 days, it's invalid, and you need to start again.

What the Notice Must Include

The notice must be in writing. A verbal conversation, a text message, or an email mentioning you'd "like to talk about the rent" doesn't meet the requirement.

The written notice needs to include:

• The new rent amount
• The date the increase takes effect
• Your signature (or the property manager's signature on your behalf)

You don't need to explain or justify the increase. There's no legal requirement to give reasons. You should keep a copy of the notice for your records, along with evidence of how and when it was delivered.

Tenancy Services has a free notice template on their website. Using it reduces the chance of leaving out a required detail.

How Much Can You Increase Rent By?

New Zealand has no legislated cap on rent increases. You can increase rent by whatever amount you consider appropriate. However, the law gives tenants the right to apply to the Tenancy Tribunal if they believe the new rent is above market rent for comparable properties in the same area.

If a tenant makes that application, the Tribunal will assess what market rent is for your property and can order that the rent be set at that level rather than the amount in your notice. In practice, this means increases that are meaningfully above what comparable properties are renting for carry some risk. Increases aligned with the current market are straightforward to defend.

If you're in Kelburn, Karori, Thorndon, or Te Aro, it's worth checking what similar properties in those suburbs are currently listed at before finalising your new rate. Trade Me Property and the Tenancy Services market rent tool are both useful starting points. The market rent tool lets you filter by suburb, property type, and number of bedrooms to get a realistic comparison.

For context on what's happening in Wellington's rental market right now, see our post on Wellington's Rental Market Has Shifted: What Landlords Need to Do Now.

Fixed-Term Tenancies: Different Rules Apply

If your tenant is on a fixed-term tenancy, rent can only be increased during the fixed term if the tenancy agreement specifically includes a provision allowing for it. If the agreement doesn't include a rent review clause, you cannot increase the rent until the fixed term ends and the tenancy converts to periodic, or until you and the tenant enter a new agreement.

This catches landlords out more often than you'd expect. It's easy to assume you can review rent at any point during a fixed term, particularly if the tenancy has been running for two or three years. But without the right clause in the agreement, you have no legal mechanism to do it. The clause needs to be in the original agreement, not added later.

If you're setting up a new fixed-term tenancy and you want the ability to review rent during the term, that needs to be built into the agreement from the start. For more on how fixed-term and periodic tenancies work, including the notice changes that came into effect in January 2025, see our post on How to End a Tenancy in Wellington: Notice Periods and the New Fixed-Term Rules.

Common Mistakes That Invalidate a Rent Increase Notice

Most of these come down to one of two things: not doing it in writing, or miscounting the notice period. Here's what I see most often:

• Verbal or text-only notice. The Residential Tenancies Act requires written notice. A conversation about the rent, even if the tenant acknowledges it, doesn't count.
• Counting from the wrong starting point. The 60 days runs from when the tenant receives the notice, not when you write or send it. If you post it, add seven working days before starting the count.
• No effective date in the notice. The notice must specify when the new rent takes effect. Without a date, the notice is incomplete and invalid.
• Attempting a second increase within 12 months. Even if you underpriced the first increase, you can't correct it within the 12-month window. You'll need to wait until the clock resets.
• Increasing rent during a fixed term without a clause permitting it. If the agreement doesn't include a rent review provision, the notice has no legal effect during the fixed term.

If any of these apply, the notice is invalid. Your tenant can continue paying the old rent, and you'll need to serve a new, compliant notice and wait the full 60 days from receipt before the increase applies.

When the Process Gets More Complicated

Most straightforward rent reviews are manageable if you follow the steps carefully. The process becomes harder when you're dealing with a long-term tenant who's sensitive about any increase, a tenancy with unclear records of when the last increase took effect, a fixed-term agreement that doesn't include the right clauses, or a tenant who looks like they might challenge the amount at the Tribunal.

In those situations, it's worth having someone experienced in Wellington's tenancy law handle the notice for you. Getting the timing, wording, and delivery method right matters, and a poorly executed notice not only delays your revenue but can also create friction with a tenant who might otherwise have accepted a reasonable increase without dispute.

This is exactly the kind of task we take care of for every landlord we manage for. Rent reviews, notice timing, Tribunal risk assessment, and everything else that comes with managing a Wellington rental property.

If you'd rather hand this over to someone who handles it every day, covering tenant selection, inspections, maintenance, compliance, and rent collection, we'd be happy to talk. Get in touch with Dave at Propertyscouts Capital City.