Rents must rise
Rents will have to go up across the board at some point, the executive officer of the NZ Property Investors Federation says.
Friday, January 23rd 2015, 12:00AM
by The Landlord
New data from Trade Me showed that the median rent of properties listed on the site increased just 5% over 2014.
It did not increase at all in Auckland.
Wellington and Christchurch record rent increases of 3.9% and 4.8%, respectively.
NZPIF executive officer Andrew King said he had expected rents to go up more than they have. He said the lack of growth could be because people’s incomes had not risen enough to withstand higher rents.
“But at some point they will have to go up. If it doesn’t happen, in future there will be fewer investors, fewer investment properties and nowhere for people to live.”
He said the best tactic was to impose small, regular rent increases. “That way tenants get used to it and there’s no big increase.”
Auckland Property Investors Federation president Andrew Bruce said some landlords found it hard to raise rent because of the personal contact they developed with their tenants.
“But you’re running a business, you have to keep an eye on the figures.”
He said landlords should keep a close eye on market rents and make sure what they were charging was in line with that.
“It can’t be above market rent because people will just move.”
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