Rent Increases Are Higher When Long-Term Tenants Move Out

When a tenant moves out of a property, it often gives landlords a chance to adjust the rent to reflect current market conditions. But how much does the rent typically increase—and does it depend on how long the previous tenant stayed?

The answer is yes. Analysis of over 10 years of New Zealand rental data from the RentHQ property management software system shows a clear trend: the longer a tenant stays in a property, the larger the rent increase tends to be for the next tenant.



As the graph shows, if a tenant stays for less than a year, the average rent increase for the next tenant is just over $10. But if they’ve been there for 4 to 5 years, the average increase jumps to nearly $39. That’s a significant difference.

Why This Happens

Many landlords choose to keep rent increases moderate for existing tenants to reduce turnover and maintain a stable income stream. However, market rents often rise over time. When a long-term tenant moves out, landlords often take the opportunity to reset the rent closer to market rates. The longer the tenancy, the more out-of-date the rent is likely to be—hence the larger jump.

Why It Matters

For property managers and landlords, understanding this pattern can help with financial planning and rental yield forecasting. It also reinforces the value of tenant retention, balanced against the potential for a rent reset.

For tenants, it’s a reminder that long-term renters often enjoy below-market rents, while new tenants may face steep increases—especially if the previous occupant stayed for several years.

Note: These insights are based on anonymised rental data collected across New Zealand using the RentHQ property management software system.