Rent freeze -or rent gouging in Chch?

[BusyLizzy]

There have been lots of andectoctal stories about landlords insisting the rent continued to be paid even though the houses are seriously damanged; and tenants abandoning their homes, etc in Chch following the EQ.

There have been discussions at my work, and as one of the few PI's there, I can certainly see both sides of the story. Tenants need alternative accom and can't manage rent in two places, and landlords still have mortgages, etc to pay (although I believe there has been some relief in that area, and insurance should help).

An article here suggests some affected landlords with properties to let are now rent-gouging - eg from $350 - $500/week post EQ. I think that's dispicable. But article to the article, at least it's rare.

http://www.stuff.co.nz/national/christchurch-earthquake/4734813/Tenants-Freeze-rent-for-6-months

[Orkibi]

$350 - $500/week post EQ.

This too much.
and as far as I know (property management is not my thing) a landlord cannot charge a tenant rent which is way over market rent - basically the tenant can go to the Tenancy tribunal for that.

ANY WAY - our Chch properties which are located in the inner city suburbs didn't preform as good as our AKL properties in term of rent increases. -- this been covered here many times by myself and other investors.

So, we may have the opportunity to increase rents by say to the upper and of the range BUT not ridiculously way and over like the example above.

We had one Tenant handed the keys back to the PM in Chch.

[charlotte30]

Rent gouging/release of tenancy

Buzy Lizzy

I wonder how correct these stories are. I have had 3 tenancies end in Christchurch because of the earthquake. None of them have had to pay until the end of their lease. I don't see the point, we are in extraordinary circumstances. As long as they leave the properties clean and tidy I prefer to move on to the next tenant. I have 8 properties in total and have managed to keep the other 5 tenants. I believe they will rent again quickly.
Charlotte30

[BusyLizzy]

I have no idea Charlotte, and I do take what I read in the media with a grain of salt. But at least they do say that it is rare. I hope that it is rare. I know that we always say that rents should follow the market, and it is normally expected that if supply is less than demand that the rent will go up. But this is unusual times.

It sounds like your tenants are dealing with a reasonable landlord in what I know must be very trying times. :-)

[Keys]

If there are tenants willing to pay. Then that's the market. Whatever the price is.

[charlotte30]

Quake

Yes keys, I understand that. There is another factor of employment. Some have lost or about to lose their jobs and will not have the ability to pay.
Charlotte30

[Orkibi]

If there are tenants willing to pay. Then that's the market. Whatever the price is.

Good to see that you are fine Keys.

I had a chat to the DBH 2 weeks ago and person on the phone advice me that yes you could charge whatever your tenants is willing to pay BUT is the rent is well above and the tenant decide no longer to pay then they MAY have ground in a tribunal considering the rent is well above market.

Or if there is fix tenancy with rent increase to unreasonable level then they may have ground.

[Viking]

Christchurch earthquake: Pay rent, says city

5:30 AM Sunday Mar 6, 2011
Expand
Photo / AP



Tenants in council flats who survived the earthquake and whose homes are intact face a new battle - housing bosses who are demanding rent.
Only a quarter of the tenants remain living in blocks of Christchurch City Council units visited by the Herald on Sunday in the eastern suburbs.
Tenants said their flats - costing $97 a week - had been inspected by council staff who had told them they had to keep paying even though they had no power, water or sewage services.
Tony McGeorge, 49, on Palmers Rd, said he had asked for a discount and been refused.

Interesting dilemma. Who is right?
Don't pay your rent and move out = abandonment.

[Perry]

Why does granny herald et al keep referring
to residential tenancies as 'leases?' Seems
they don't know about Tenancy Agreements.

[Re@der]

97 bucks a week that is cheap. maybe worth paying to hang on to.

[Perry]

Sub-letting an option, I wonder?
Taking in a boarder? Could be quite
helpful, all round.

[Keys]

Shall abate accordingly. Written into the Act. Hard to ignore.

[Wayne]

97 bucks a week that is cheap. maybe worth paying to hang on to.

you can be sure they will be back wanting their $97 flat when things get better

[srv]

Well I know insurance companies don't consider a property to be uninhabitable if there is no power or water as they won't payout based on that... Only if it's unsafe to live in!!!

[speights boy]

Greedy landlords 'looting' - Christchurch mayor


Landlords who hiked rents in the wake of last month's Christchurch earthquake are just "looting by another name", according to Mayor Bob Parker.
There have been reports that some rents have risen 150 percent in a city where many have been left homeless by the magnitude 6.3 quake on February 22.

www.yahoo.co.nz