# Is this legal in NZ?



## BGCExpat (Oct 26, 2015)

Can a landlord raise the rent on a lease that has already been signed? 

We signed a 1 year lease and moved into a granny flat near the beach in Takapuna on October 1, 2018 - here we are in the second week of January 2019 (3.5 months into the lease term) and the agent just called saying the landlord wants to raise the rent from $550 per week to $750 per week “to cover unexpected costs” of increased utility usage. The flat was initially listed at $500 per week but he raised it to $550 at the outset to cover increased costs since there are two of us (my wife and I) instead of a single tenant.

I did not think we would use $200 a month more in water and electricity (the only variable utilities) as a couple rather than a single, but I wanted the place so agreed to the initial 10% weekly bump in rent cost. Now it seems the usage has gone over his estimation so he now wants another 36%+ increase from $550 to $750 a week. Is this legal? If not, what government agency should we talk with about the situation?

Thanks for any input...


----------



## escapedtonz (Apr 6, 2012)

In a nut shell, if you are in a rental contract and the contract allows the landlord to change the rent - i.e. there is a condition in there that you agreed to, then yes they can change the rent, BUT they have to follow tenancy law rules.
1. They can only change it after 180 days of the start of the contract or since the previous date of change.
2. They must give you minimum 60 days written notice.
3. There is no restrictions on how much a landlord can increase the rent but they must follow the rules.

Just Google tenancy law nz.

Also must add that rental contract costs don't usually include anything else like utilities etc. Rent usually ONLY covers rent. Once in the property the rest would be up to you to arrange and pay as required so I find it strange you mentioning the landlord increasing rent to cover unexpected power and water costs ?


----------



## BGCExpat (Oct 26, 2015)

escapedtonz said:


> In a nut shell, if you are in a rental contract and the contract allows the landlord to change the rent - i.e. there is a condition in there that you agreed to, then yes they can change the rent, BUT they have to follow tenancy law rules.
> 1. They can only change it after 180 days of the start of the contract or since the previous date of change.
> 2. They must give you minimum 60 days written notice.
> 3. There is no restrictions on how much a landlord can increase the rent but they must follow the rules.
> ...


Appreciate the response. This lease did include utilities since the flat is attached to the owners home and there are not separate meters to regulate usage. That is what threw me off so much was the fact the owner had the agent call me instead of just talking to me himself - we are neighbors after all. For all intent and purposes we live in the same house!

Nowhere in the lease is a clause that allows him to raise the rent; that’s kind of the point of a lease - it gives me a number that stays consistent so I can reasonably budget for it. I’ve rented places on 3 different continents and never had a landlord try to charge me more than the agreed and contracted amount, that is why I posted here - to see if this is some sort of local (NZ) way of doing business.

We did talk directly with him over the weekend (bypassing the agent), we mutually agreed to cancel the remainder of the lease in 60 days with no party at fault. Also included will be a letter of reference for us being good tenants, and an agreement to refund 100% of the bond we posted. 

One of the reasons he gave for trying to raise the rent was that the water bill had tripled; my response was there are three of us using water now instead of one, a tripling of the bill would be normal in that situation, plus the fact he had already raised the rent at the beginning to cover the increased utility usage. We are not abusive of the utilities in any manner, he just had a different profit number in his mind than what he ended up with.

At this point we will just start looking for another place and move on with our lives...


----------



## escapedtonz (Apr 6, 2012)

BGCExpat said:


> Appreciate the response. This lease did include utilities since the flat is attached to the owners home and there are not separate meters to regulate usage. That is what threw me off so much was the fact the owner had the agent call me instead of just talking to me himself - we are neighbors after all. For all intent and purposes we live in the same house!
> 
> Nowhere in the lease is a clause that allows him to raise the rent; that’s kind of the point of a lease - it gives me a number that stays consistent so I can reasonably budget for it. I’ve rented places on 3 different continents and never had a landlord try to charge me more than the agreed and contracted amount, that is why I posted here - to see if this is some sort of local (NZ) way of doing business.
> 
> ...


If there are not separate meters for utilities then your landlord CANNOT legally charge you anything for usage. Under tenancy law a landlord has to provide evidence of your usage in order for you to make payments. A landlord cannot just split his bill and charge you a portion.
We've lived in 5 rentals in NZ and all of them allowed rent to increase. It is a standard clause and may not specifically state it in exacting words. As a landlord you wouldn't allow a tenant to be in there years without raising the rent as you could become out of pocket as costs and mortgages generally rise etc. We have also been landlords and always had the discretion to raise or lower the rent as we thought fitting taking advice from the rental management agent.
I don't agree that a fixed price is a point of the rental contract in NZ. It is there to give you and your family a period of security at the agreed price on the day you sign and always carries a risk of the costs increasing but you always have the option to leave at the end of the contract.

You are very lucky that you have been able to agree to cancel the remainder of the contract. I'd keep my head down and hope that is what happens as you'll then be free to leave. The landlord does not have to do that and under tenancy law you are legally obligated to pay the rent during the contract period.....even if it increases.

Take it as a lesson learned, fingers crossed you get out asap and move on.


----------

