Renters in gun as market shrinks

[Aston]

Of course Aston is going to sell the property/ies he/she owns at the price he/she paid for them when they choose to sell because selling to the highest bidder is abhorrent

No I would sell for market price. What I am saying is, I won't increase the rent on any given property by an obscene amount just because I can. And then blame the Government to boot.

[Lighthouse]

I don't think the owner would agree. He spent a significant sum bringing a derelict unit back onto the market and in this case, he has done better than expected. I did explain to the owner that this may be a temporary aberration. Who knows?

Prices for things are often quite uncertain there is no great central planner to consult. In this case, the applicants decided the independently of each through a tender process. Their pricing was much more informed than mine as they have viewed many more similar properties. I could only make some vague guess or extrapolation.

[Don't believe the Hype]

No I would sell for market price. What I am saying is, I won't increase the rent on any given property by an obscene amount just because I can. And then blame the Government to boot.

you would sell at market with market defined as the highest offer ... how is that different to what this property owner had done?

[Wayne]

If I had just purchased the property, at market price, then I would charge market rent. Otherwise my comment above remains.

Lighthouse said

The shortage is extreme in Lower Hutt. I recently let a renovated two bedroom unit in a Body Corporate and it was necessary to ask tenants for their best offers due to the surplus of high-quality applicants. A year ago, a similar unit might have achieved a rental of $300 per week. The unit was let for $430 to an excellent applicant. I received about 200 enquiries about the property over five days. A number of unsuccessful applicants said they were struggling to understand the current conditions.

which certainly implies that the place was re-rented after renovation rather than with sitting tenants.
Maybe you read what you want to see rather than what is actually said.

[Perry]

It may be a bit semantical, but the rent was not increased by the PM/owner.

It was increased by the tenant.

Market rules on sale price (if selling) and market rules on rental price (if renting).

What's the difference?

And we likely can never know how pleased the successful tenant was at being able to beat all the other "high quality applicants."

[Learning]

I wander how the tenant would get on if they’d purposely offered well above market rate to secure the rental and then challenge the excessively high rent through TT?

[Nick G]

Selling at market is somehow different to renting at market.

you would sell at market with market defined as the highest offer ... how is that different to what this property owner had done?

[Anthonyacat]

Renting a house out at below market rent is effectively a form of charity. Tenants will love the free money you're giving them. And you are giving them free money, in that if they were to leave your house and go rent another identical house, they'd be paying more.
Like declining an increase in salary because your living expenses haven't increased. Your company will love you for that.

Got to hand it to Aston for being such a charitable person, but pushing the view on others isn't appropriate.
No one should be forced to be charitable, and some might rather target their charity elsewhere by charging near-market rents on their properties and donating to causes they deem worthwhile.

Is the tenant in your property the best possible recipient of your charitable giving, in your opinion? Only you can say that. It's not my personal view, but you're welcome to hold your own.

[Aston]

Renting a house out at below market rent is effectively a form of charity. Tenants will love the free money you're giving them. And you are giving them free money, in that if they were to leave your house and go rent another identical house, they'd be paying more.
Like declining an increase in salary because your living expenses haven't increased. Your company will love you for that.

Got to hand it to Aston for being such a charitable person, but pushing the view on others isn't appropriate.
No one should be forced to be charitable, and some might rather target their charity elsewhere by charging near-market rents on their properties and donating to causes they deem worthwhile.

Is the tenant in your property the best possible recipient of your charitable giving, in your opinion? Only you can say that. It's not my personal view, but you're welcome to hold your own.

I understand your point but I don't see it as charity. I just can't see the justification in raising rents simply because there is a shortage of rental properties. It seems immoral to me. The people at the bottom of the pile are struggling to afford their rent and those who aspire to own their own home can't manage to save a deposit. One reason for that is because they are paying so much on rent. And the landlords are laughing all the way to the bank saying blame the Government.

I don't see why it's inappropriate for me to "push the view on others"?

Why is it different from you pushing your viewpoint?

[flyernzl]

So therefore when there is an oversupply of available rentals (as in Christchurch right now) you would see no justification in reducing rents from their previous level?

If it swings one way then it should also swing the other.

[Anthonyacat]

I understand your point but I don't see it as charity.
...
The people at the bottom of the pile are struggling to afford their rent [therefore we should keep their rents artificially low to help them]
...
Why is it different from you pushing your viewpoint?

Certainly seems like charity to me. Like I said, you're welcome to your views and opinions. I'm not pushing any change to your behaviour at all.


Prices go up when things are scarce. It's how things have always worked. Holding them artificially lower to help specific people or groups at your own expense is very generous. Just like donating to the city mission, or any other charitable cause.

[artemis]

Mr Robertson on the wireless this morning. He invited students unhappy about rent increases to contact him and had dozens of responses within a few hours. He committed to investigate and take action if these rents are not in line with market rents or breach the RTA.

Fair enough. Sounds like he is getting the MBIE compliance group to investigate initially, where normally the process is an application to the Tenancy Tribunal with supporting evidence from the applicant. Either way, cases that go to the TT should provide info on their attitude to market rents.

Though when the first of the student renter increases popped up I had a quick look at comparable properties listed on TradeMe and found they are broadly similar.

Might need some OIA requests on general outcomes relating to numbers and market rent assessments. More detail will be available if cases go to the TT.

ETA Thank you Perry! Fixed. Have now had covfefe.

[Perry]

Mr Robertson committed to investigate and take action if these rents are in line with market rents . . .

Is that really what you intended to report that he said?

[Davo36]

Check this out guys: https://www.seek.co.nz/job/35274444?cid=ios-share

As an Investigator you will play a key role in ensuring that New Zealand residential landlords ensure their business practices are compliant with the Residential Tenancy Act (RTA). This will involve monitoring market trends and being involved in activities which promote the value proposition of compliance with landlords.

[Perry]

The Investigator will investigate serious instances of non-compliance and breaches of the Act and will need to make high quality, sound decisions based on the evidence collected These investigations require a careful measured approach to the gathering of evidence and other relevant information. In turn, this evidence could be used to resolve disputes directly or may form part of an enforcement process in the tenancy tribunal or Court. For the more complex or serious, systemic breaches the Investigator will team up with a senior member, who will provide support and guidance in achieving the optimal outcome.

Twill be good to hear from LLs who report breaches just how the MBIE Investigation team deal with the tenants concerned.