Taking over existing tenancy - can I increase the rent?

[steamroller]

Hi there,

I have just bought a rental property and have agreed to retain the existing tenants. the Tenancy services website states that you cannot increase rent within 180 days of starting a new tenancy, but does this still apply in my stituation? The current rent is below market, and I'm not sure how to approach this as there is an existing agreement in place that I will be replacing with a new tenancy agreement (with my details etc).

Must be a super common situation, so hopefully someone can help!

[Keys]

You must keep the old tenancy agreement. The last rent increase or the start of the tenancy will be in the rental summary you received. Yes, you can increase the rent by giving a 60 day notice as soon as 120 days into the tenancy or from the last increase. Ensure you take into account the extra time which may be required for delivery of notices.

Edited to add.

There is no limit on the amount you can increase the rent. It may be challenged by the tenant if it is way above market rent though.

[artemis]

The existing tenancy agreement can remain in place or a new TA agreement can be entered into. Keys has recommended the former, thus retaining the existing dates for start of tenancy and for the last rent increase. That requires a change of landlord form, a simple process set out below. Then 60 days notice to change the rent is required not 180 days.

https://www.tenancy.govt.nz/ending-a-tenancy/change-of-landlord-or-tenant/selling-a-rental-property/

[sidinz]

The existing tenancy agreement can remain in place or a new TA agreement can be entered into.

From what OP has said, it sounds like it's too late to get vacant possession and get them onto a new TA.

[Keys]

From what OP has said, it sounds like it's too late to get vacant possession and get them onto a new TA.

Which is the only way a new TA can be done.

[steamroller]

Appreciate your help Keys, artemis and sidinz. I ended up keeping the existing TA and just updating a few details (e.g. landlord, bank account...) and then getting everyone to sign it.

I have provided notice to increase rent but the tenants have come back arguing it's unfair and above market rent (which it's not). I am planning to go back to them and letting them know that the increase stands, but I would like to know if anyone has had experience with tenancy tribunal and market rent arguments?

Cheers

[Keys]

If it is at market rent then don't engage with the tenants other than advising them of how you came to the rent level.

[artemis]

The RTA provides for tenants to apply to the Tenancy Tribunal for rent adjustment if the rent exceeds the market rent by a substantial amount. That is a high bar. Evidence has to be produced. Can do a keyword search of the TT database to see decisions and adjudicator reasoning.

Agree with Keys, no need to go into detail. Up to the tenants to make an application to the TT if they want to.