APIA Blog

RSS Feed

​COVID-19: Freeze on rent increases explained

Tuesday, June 16, 2020


Based on the number of inquiries we have received concerning the temporary rules for rent increases (under the COVID-19 Response (Urgent Management Measures) Amendment Act), this FAQ feels appropriate:
 
What is being frozen?
Rent increases not rents. Landlords are prohibited from increasing rents during the freeze period.
 
What is not being frozen?
Rents and rent increase notices. Tenants still have to pay rent in full and on time. Landlords are free to issue rent increase notices so long as the notice relates to an RTA compliant increase that would only take effect after the freeze period.
 
What is the freeze period?
Initially between 26th March to 25th September 2020 for existing tenancies. If the entire COVID-19 Response (Urgent Management Measures) Amendment Act (the Act) is extended then the freeze period will extend accordingly. In short, and as things stand, you can increase rent from 26th September onwards provided that you serve the right notice.
Note that the freeze period cannot be extended by Order in Council such as the temporary rules for termination can be.
 
What if I had already issued a notice to increase before 26th March?
Assuming your notice is RTA compliant:
If the notified increase would have taken effect before 26th of March then the increase is not captured by the Act and the increased rent is the rent payable.
If the notified increase would have taken effect after 26th March then the notice is nullified.
 
Do I have to issue a new notice if my previous notice was nullified by the Act?
Yes. A nullified notice cannot be reignited (e.g. change of date on the same notice). A fresh notice must be given.
 
I am re-letting my property after 26th March, can I advertise and charge a higher rent for the new tenancy?
Yes. The freeze on increase only applies to tenancies that pre-exist 26th March. 
 
What if I get it wrong?
Breaching the temporary rent increase rules is an unlawful act and could attract a penalty of up to $6,500. The Act prohibits landlords from increasing or purporting to increase rent knowing that they are not entitled to. In general, we recommend all rent increase notices to include a rider that it would have no effect if the Act is extended before the increase takes effect.

Do you have any questions about the temporary rental rules under the COVID-19 Response Urgent Management Measures) Amendment Act? Email us. We would love to help!

 

Recent Posts


Tags

termination property cycle Q&A worksafe trust bad tenant tax income trademe renovation water bill positive cash flow cgt landlord winz tenant off the plan warm up new zealand advice rental market investor insulation election 2017 wins yield market boarding house legal return inspection property management subdivision Investor story gluckman report negotiation Sponsored post sale and purchas rent arrears Standards New Zealand rent increase interest only Tribunal case study trespass CoreLogic mortgage Market report maintenance rental wof banking wealth creation principal and interest ird HHGA shower dome HSWA housing bubble Property (Relationships) Act lvr initio anz asbestos bond mindset bond form Gluckman smoke alarm capital gain Case study scotney williams auckland council television Question and answer RTAA 2019 ventilation ask an expert property clnz recycling equity cat housing affordability skill shortage Editor's Choice extractor fan warren buffett data security holiday house tenancy issues first home buying personal growth reserve bank watercare letting fee unitary plan interest rates Guest blog LIM building CCC letting sale and purchase finance Holler government How to Kris Pedersen Mortgages and Insurance short-term rental relationship Landlording market rent insurance khh tenancy tribunal nzpif partners RBNZ house prices minor dwelling speculator buyer's agent Level 4 cash-flow TCIT fixed-term tenancy debt enforcement development property maintenance rta reform Must know financial advisers act buying rules rent education covid-19 robert kiyosaki tenancy services beginner investor buying meth equity twg report investment strategy auckland heating p lab structure Investment tip DTI privacy rta property value Jeff Bezos productivity damage sublease HHS management airbnb ocr Must knows heater ring-fencing business parry v inglis meth contamination

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited