1. What is the CPI Rent Review?

The CPI (Consumer Price Index) Rent Review is a method used in New Zealand real estate to adjust rental prices based on inflation. It ensures rents keep pace with the cost of living while being fair to both landlords and tenants.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Old \) — Current rent amount in NZD
• \( CPI\_NZ \) — New Zealand Consumer Price Index percentage

Explanation: The formula calculates the new rent by increasing the old rent by the percentage of CPI change.

3. Importance of Rent Review

Details: Regular rent reviews help maintain the real value of rental income for property owners while providing tenants with predictable, inflation-adjusted rent increases.

4. Using the Calculator

Tips: Enter the current rent in NZD and the latest CPI percentage for New Zealand. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often should rent be reviewed?
A: Typically annually, but check your tenancy agreement as it may specify review frequency.

Q2: Where can I find the current CPI for NZ?
A: Statistics New Zealand (Stats NZ) publishes quarterly CPI figures on their official website.

Q3: Can rent increase by more than CPI?
A: Only if specified in the tenancy agreement. Otherwise, CPI is the standard adjustment method.

Q4: Is this calculator legally binding?
A: No, it provides estimates only. Always consult the Residential Tenancies Act and your tenancy agreement.

Q5: Does this apply to all NZ properties?
A: Most residential tenancies, but some exceptions may apply (e.g., fixed-term agreements with no review clauses).