1. What is CPI Rent Review?

CPI (Consumer Price Index) rent review is a method of adjusting rental prices based on inflation rates in New Zealand. It ensures rental prices keep pace with the cost of living changes measured by the official NZ CPI.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Current\ Rent \) — The existing rental amount in NZD
• \( NZ\ CPI\ Rate \) — The percentage increase from New Zealand's Consumer Price Index

Explanation: The formula calculates the new rental amount by applying the CPI percentage increase to the current rent.

3. Importance of CPI Rent Reviews

Details: CPI rent reviews provide a fair and transparent method for adjusting rents in line with economic conditions, protecting both landlords and tenants from extreme fluctuations.

4. Using the Calculator

Tips: Enter the current rent in NZD and the latest NZ CPI rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current NZ CPI rate?
A: The official CPI rate is published quarterly by Stats NZ (Statistics New Zealand).

Q2: How often are CPI rent reviews typically done?
A: Most commercial leases specify annual CPI adjustments, but this can vary by contract.

Q3: Is CPI the only method for rent reviews?
A: No, other methods include fixed percentage increases or market reviews, but CPI is common for its objectivity.

Q4: Can CPI decreases lead to rent reductions?
A: The formula would mathematically allow it, but most leases specify CPI increases only, with no decrease in deflationary periods.

Q5: Does this apply to residential tenancies?
A: In NZ, residential rent increases are governed by different rules under the Residential Tenancies Act.