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Central Auckland rent increases vs LL added value
I've been a tenant in a large semi-maintained central Auckland villa for 3 years now. Never missed a bill, always on time with rent. Ill-maintained old villa best suited for the young professional type. LL's live overseas, we deal through a PM agency, who are very professional and friendly.
Now, I'm fully aware of the current housing situation in Auckland in regards to both renting and purchasing and that rent increases are most certainly well within the landlords rights, but I am currently facing my 3rd rent increase in 18 months, which is taking this property to over $100pw more than when I first moved in. While I disagreed with the first 2 in writing, this third has sparked me to head towards mediations with the TT.
Without getting into too much detail (who knows who could be reading this) heres my logic in disputing:
- The PM agency are great at fixing minor issues quickly. Any larger issues need to be OKed by the LL before any money is spent, and despite PM best practice recommendations, the LLs will often take massive shortcuts with devalue/destroy the property in order to save a buck. Bottom line - this property is in worse condition than when I first moved in, and through no fault of mine.
- Property itself is (and has never been) in line with the stats for this area. I discovered the property increases have gradually moved the house to match the uppermost quartile of the DBH stats.
I guess what I'm looking for is confirmation that I'm doing the right thing by disputing this and what the likely outcomes would be based on the members of this forum's experiences. From my perspective, the LLs are taking advtantage of the central rent increase while not adding any actual value to the property.
IMHO You haven't got a leg to stand on at the TT regarding the rent increases ..... Sucks to be you. If you think you're paying too much now you only really have one option and that is to find a new place to live
Not a hope in hell. LL is within legal rights with increases and has done nothing wrong otherwise. Wasting the TT's time.
If you've never missed a payment in 3 years, IMO the LL is silly to keep raising the rent like this - unless he is trying to force you out for some reason?
I would just hand in my notice and find another place. I suspect there would be plenty of landlords happy to take someone on, like yourself.
What suburb is the house in?
Well you could vote Labour I guess...?
Capital gains tax will fix it apparently.
If you screw the developers and pummell the land lords - then the tenants all get to pay!
‘Own things they can’t print.’
You appear to have some logic that for rent increases to be fair, the landlord needs to do have done something to improve the property..........Its just the way the rental market is at the moment.
Originally Posted by RvB
To put it a bit less emotionally, the TT people will simply look at the current market rent for similar properties located within the same area.
Provided that your landlord is setting a new rent that is within reasonable distance of this market rent, they will not give a judgement reducing the rent he is trying to set.
Your time in the property and your record as a good tenant will have no bearing on their decision. They can only rule on whether a rent is within a reasonable range of the current market rent.
You could try looking around for a new home to rent, just to get a feel for the market. You may be (unpleasantly) surprised at the rents now being paid within the Auckland area.
it is tough
let's say the old villa is in epsom/newmarket
with a cv of $815,000
and you are paying rent of $815pw
as a return to the owner that's only about level with a bank term deposit
should the gov. be subsidizing your accom?
should the owner?
or should housing investment return less than bank deposits?
no easy answers
better to side-step the whole issue and buy your own place imho
history does not crawl
Its actually less than that.
Originally Posted by eri
Even if the owners are doing no maintenance at all, they are still paying overheads of rates (will be at least $4000 per year) insurance and 8% of rental + GST as a property managers fee.
That adds up to at least $9000 a year - $180 a week, even if they have no mortgage.
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