A 12-month fixed-term tenancy agreement has no clause allowing rent increases. Nine months in, the owner asks the property manager to raise the rent. What applies?
Correct Answer
C) Rent cannot be increased during the fixed term without a clause allowing it.
Section 24(1)(g) says a landlord under a fixed-term tenancy may not increase rent during the term unless the tenancy agreement permits it, and then only in line with s 24. Schedule 1 sets out model clauses. Without such a clause the rent is fixed until the term ends.
Why This Is the Correct Answer
Section 24(1)(g) blocks mid-term increases in a fixed-term tenancy unless the agreement allows them.
Why the Other Options Are Wrong
Option A: Rent can go up with 60 days' written notice once 12 months have passed.
The 12-month and 60-day rules apply only if a fixed-term agreement permits an increase at all.
Option B: Rent can go up with 60 days' notice because six months have passed since the start.
The minimum gap is 12 months, not six, and a fixed term also needs an enabling clause.
Option D: Rent can go up if the tenant does not object within 21 days of the notice.
A tenant's silence does not create a right to increase rent during a fixed term.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
Fixed term: check for an increase clause before anything else.
Common Mistakes to Avoid on Property Management Questions
- •Applying the periodic tenancy increase rules to a fixed term with no clause.
More Property Management Questions
How long does a landlord have to lodge a bond with Tenancy Services after receiving it from a tenant?
Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
- → During a property inspection, a landlord notices the tenant has changed the locks. Under what circumstances is this legally permitted?
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