FTT & Rent Increase Notice

[Perry]

What's the 'new' (RTA) procedure for a rent
increase that coincides with a renewal of an
annual FTT? Notice that a FTT is not going to
be renewed is one thing. But is an offer of
renewal, together with an increase in rent
really a renewal? Or tantamount to ending
one FTT and starting another (new?) FTT?
.

[BusyLizzy]

I would have though a renewal IS starting a new FTT. Doesn't just about every new FTT incorporate a rent increase (except where the market is a bit flat)? It's a new contract with (potentially) new terms and conditions.

I'm happy to be corrected, of course :-)

[WGN ex-property manager]

Issue notice that the old FTT will terminate (to prevent it auto-rolling into a periodic), and in the same letter offer a new FTT (explaining that they're great tenants, happy for them to stay etc... this is just paperwork).

Explain the rent increase the same way you would for any rent increase (generally just state the new rent, or something general about market rents rising etc etc).

[ATandGT]

Be very careful referring to anything as a "renewal". http://www.legislation.govt.nz/act/p...cies_resel&p=1
In essence this means the rent on the day the new tenancy starts must be the rent the old tenancy was; unless you had given 60 days notice that it would be going up on the date of renewal. You can no longer just say "here is the renewal and its at xx more rent"

[Perry]

Thanks for that reference and links, ATandGT.
A veritable can of worms, to be sure.

I would have though a renewal IS starting a new FTT.

• Renewed?
• Extended?
• New?

Probably depends on which side of the bed the
Adjudicator used to get up, that morning.

60C Notices and orders continue to apply to renewed or extended tenancies
(1) This section applies to a tenancy (the current tenancy) that results from
the renewal or extension of a previous tenancy (the previous tenancy).