1. What is CPI Rent Review?

CPI (Consumer Price Index) rent reviews in New Zealand are a method of adjusting rental prices based on inflation. This ensures that rental income maintains its real value over time by accounting for changes in the cost of living.

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 change in Consumer Price Index

Explanation: The formula applies the CPI percentage increase to the current rent to calculate the adjusted rent amount.

3. Importance of CPI Rent Adjustments

Details: CPI adjustments help maintain the purchasing power of rental income, provide fair and predictable rent increases, and are commonly used in commercial leases and some residential tenancies in New Zealand.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How often are CPI rent reviews typically done?
A: Most commercial leases specify annual CPI adjustments, though the frequency can vary by agreement.

Q2: Where can I find the current NZ CPI rate?
A: The latest CPI figures are published quarterly by Statistics New Zealand (Stats NZ).

Q3: Are CPI rent increases mandatory?
A: No, they must be specified in the lease agreement. Residential tenancies typically use different rules.

Q4: Can CPI decreases reduce my rent?
A: Unless specified otherwise in the lease, most agreements only allow upward adjustments.

Q5: What's the difference between CPI and market rent reviews?
A: CPI adjusts for inflation while market reviews adjust to current rental values, which may change differently.