1. What is CPI Rent Review?

The CPI (Consumer Price Index) rent review is a method used in New Zealand to adjust rental prices in line with inflation. It's a government-recommended approach to ensure fair rent increases that reflect changes in the cost of living.

2. How Does the Calculator Work?

The calculator uses the standard formula:

Where:

• \( CPI \) — Consumer Price Index percentage (latest inflation rate)
• \( Current\ Rent \) — The current monthly rent amount in NZD

Explanation: The calculation multiplies the current rent by the CPI percentage (converted to decimal) to determine the allowable rent increase amount.

3. Importance of CPI Rent Adjustments

Details: CPI-based rent increases help maintain fairness for both landlords and tenants by linking rent changes to official inflation measures rather than arbitrary amounts.

4. Using the Calculator

Tips: Enter the latest CPI percentage (available from Stats NZ) and your current monthly rent. The calculator will show both the increase amount and the new total rent.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current CPI for New Zealand?
A: The latest CPI figures are published quarterly by Stats NZ on their official website (stats.govt.nz).

Q2: How often can rent be increased using CPI?
A: Typically once every 12 months, unless specified otherwise in the tenancy agreement.

Q3: Is this the only legal way to increase rent?
A: No, landlords and tenants can agree to other methods, but CPI is a common and government-recommended approach.

Q4: Does this apply to all rental properties in NZ?
A: Most residential tenancies, though some exceptions may apply (e.g., fixed-term agreements with specified increases).

Q5: What if the calculated increase seems too high?
A: Tenants can challenge excessive rent increases through the Tenancy Tribunal if they believe it's not in line with market rates.