A group of Wellington students were given 24 hours to accept a rent hike, sign a new lease or face losing their flat.
It's one of a number of cases that the Victoria University of Wellington Students Association has heard about recently.
Association president Marlon Drake says the five students, who wish to remain anonymous, were given the ultimatum to accept a $36 rise in rent each or be thrown out.
He says in their case a new tenancy agreement was drawn up, to include the hike, because a new property manager had taken over the property.
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The students reluctantly signed and are now considering further action.
Ministry of Business, Innovation and Employment's Tenancy services wouldn't comment on the specific case but it did say that for new tenancy agreements, a landlord can decide on the amount of rent they will accept for a property.
"Market rent is what a landlord might reasonably expect to receive and a tenant might reasonably expect to pay for the tenancy, compared to properties of a similar type, size and location. Tenants should ensure they are comfortable to pay the asked rent before they sign the tenancy agreement."
Drake says he's also heard of another group of students whose rent went up $30 each as well.
He says it all boils down to the severe shortage of accommodation, which ought to be a priority to address.
"What we'd really like to see is more accommodation being made available particularly for students and more student accommodation that is dedicated for students would be a policy that benefits everybody."