New Zealand landlords were selling in the hundreds last year when the government bought in restrictions on the Landlords to upgrade their rental properties. They were given several months to complete this, but so many the cost were too high, and selling was the next step.
Where did the tenants go? With the rental pool shrinking, tenants were now facing the ever present short gage = price rise. Those landlords who did decided to stay on board with rentals, now put the cost of these improvements onto the tenants and was another excuse to raise rents.
Now, the final straw has come with the Government once again making noises that it intends to increase the obligations of Landlords even further, which is now causing another round of Landlords offloading rental properties onto the open market by selling their rental properties.
Who are the losers? The tenants can’t find a home to live in, and even if they could, and even with Accommodation supplements still can’t afford the high rents now sought by Landlords, the Landlord loses out because yet again he has to put right all the Government is asking for at a cost not all can afford. Remember this applies to all landlords even the Mum and Dad who have just one property for rent, and are already struggling to pay the mortgage on that property, plus rates, plus insurance, plus cover the cost when the tenant does not pay, plus often they are left with a sizeable bill at the end of a tenancy if the tenant has done damage.
Fewer homes for rent?
So, what lies in store if the Government follows through with this second lot of requirements, simple, more homeless people because fewer homes are for rent. While the Government is busy spending money on Kiwi Build homes for those who are able to service large mortgages, one would think the money could be better spent on more State Housing to house those unable to pay the high rents, or own their own home. Once again, these people are being kicked to the curb. A $30 winter energy payment does not put petrol in the car or heat an outside tent. Government would have been better to put a cap on rents charged by landlords who are taking full advantage of the rent hike.
Making Lemonade out of lemons?
I personally know of a Landlord who owns a house they have had for 25 yrs. They are now charging $550 a week rent in Auckland and their mortgage is less than $200 a month. Greed and opportunity make misery for others.
Perhaps renters could get together and rent a large property, thus splitting the rent between them. At least they would have a roof over their heads if they negotiated a long-term lease.
Councils should be opening their Housing for the Elderly to younger families who cannot find rentals and cannot afford what is available. Yes, I know most are only 1 bedroom but when you have nothing that is a palace.
Government needs to be held to task for ignoring the obvious signs of what is about to happen to our most vulnerable.
Article by TopNotch Agents.NZ Ltd. Referral Agents to Home Sellers 0800 355 655