1. What is CPI Rent Review?

The CPI (Consumer Price Index) rent review is a method used in New Zealand to adjust rental prices based on inflation. It ensures rent increases are fair and tied to the cost of living changes measured by Statistics New Zealand.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Current Rent — The current monthly rent amount in NZD
• CPI — The percentage change in Consumer Price Index

Explanation: The CPI percentage represents inflation, and this calculator applies that inflation rate to determine the appropriate rent increase.

3. Importance of CPI Rent Adjustments

Details: CPI-based rent adjustments are commonly used in commercial leases and some residential tenancies in New Zealand. They provide a transparent, objective method for rent increases that reflects economic conditions.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Is CPI rent review mandatory in NZ?
A: It depends on the tenancy agreement. Commercial leases often include CPI review clauses, while residential tenancies may use different methods.

Q2: Which CPI index should I use?
A: Typically the "All Groups" CPI from Statistics New Zealand is used, but check your lease agreement for specifics.

Q3: How often can rent be increased using CPI?
A: This is usually specified in the tenancy agreement, commonly annually.

Q4: Are there limits to CPI rent increases?
A: For residential tenancies, landlords must comply with the Residential Tenancies Act which may limit frequency and amount of increases.

Q5: Can CPI decreases reduce rent?
A: Unless specified in the agreement, CPI adjustments typically only increase rent, though some contracts may include downward adjustments.