Auckland landlords are hiking rents amid fears of big rates increases next year on the back of spiralling property values.
The Property Investors' Federation says landlords are already trying to claw back rising costs and predicts average rents for a three-bedroom Auckland home could jump up to $40 a week.
Crockers Property Group says many landlords will inevitably pass any increase on to tenants.
"They're in business to get a return and that's, unfortunately, the nature of the beast," said chief operating officer Dean Cates.
Auckland Council has released initial findings of the latest revaluation of 525,000 properties. Values have surged 33 per cent on average since 2011 but the council stresses they are not the only factor determining rates.
Property Investors' Federation executive officer Andrew King, an Auckland landlord, is already putting up his rents to cope with rising costs and says he knows other landlords doing the same.
Increases in landlords' expenses, including rates, mortgage interest rates and insurance premiums, could push up rent on a three-bedroom Auckland house by between $20 and $40 a week, he said.