Auckland apartment: review the rent after 58 days or retain a good tenant?

C

cleo.ford

Homeowner
The asking rent for comparable Auckland apartments appears to be around NZ$8,609 for the same rental period, versus NZ$7,413 currently. It has been 58 days since the current rent began. The tenant pays reliably and looks after the apartment, so I do not want to lose them for a paper gain that disappears through vacancy and refurbishment.

Would you leave it unchanged, plan a modest adjustment when permitted, or aim closer to the advertised market level? I also want to handle the notice and timing correctly under New Zealand rules.
 
At only 58 days, I would separate the legal timing from the commercial decision. Confirm the current notice and frequency requirements through the official New Zealand tenancy guidance before saying anything formal.

Commercially, a reliable tenant has real value. Work out how many rent periods at the proposed increase it would take to recover even one vacant period plus cleaning, repairs and reletting costs.
 
Are those figures monthly, annual, or another period? Also, is NZ$8,609 based on advertised apartments or completed tenancies? Asking rent can be optimistic. The comparison only helps if the apartments are genuinely similar in size, condition, location and inclusions.
 
I agree with carlosb. The difference is NZ$1,196 per stated rental period, which is substantial enough that the quality of the comparisons matters. I would not move toward the higher figure solely because several listings display it. A modest rise supported by close comparables is easier to explain and less likely to damage the relationship.
 
I would not necessarily leave it untouched indefinitely, though. Good tenants can still be paying materially below the market. Once an increase is legally available, the fair approach may be a smaller adjustment rather than choosing between no change and the full advertised gap.

For now, avoid presenting a premature notice. You can simply say the rent will be reviewed at the appropriate time.
 
Put actual amounts beside each turnover risk: likely vacancy time, any refurbishment already due, cleaning, advertising or management costs, and your own time. Then compare that total with the extra rent you would receive over the period you realistically expect the tenant to remain.

Keep the deposit out of that calculation. Its handling follows tenancy requirements and it should not be treated as a general fund for vacancy or routine refurbishment.
 
Maintenance history should influence this too. If the tenant has reported unresolved issues, raising the rent before dealing with them may feel unreasonable even if the market evidence is sound. Conversely, a well-maintained apartment with responsive management makes a measured increase easier to justify. Fairness is partly about the condition and service being delivered, not just nearby listings.
 
That is a good point. I would prepare a short list of genuinely comparable apartments, review any outstanding maintenance, and decide the maximum increase that still leaves a clear retention benefit. Then approach the tenant calmly rather than using the highest listing as an ultimatum.
 
One further caution: do not promise that the deposit will cover repainting or general refresh costs at the end. Ordinary turnover work and tenant-caused damage are not automatically the same thing, and the applicable New Zealand process matters. Document the apartment's condition and maintenance now so any later discussion is based on records rather than memory.
 
The tenancy type and the exact relevant dates are still missing, and those may affect what can be done and when. I would verify those details against current New Zealand tenancy information before serving notice.

My practical choice would be no immediate increase at day 58, followed by a properly timed review using close comparables and a realistic turnover calculation. If the numbers still support a rise, offer a modest, clearly explained adjustment rather than jumping straight from NZ$7,413 to NZ$8,609.
 
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