I got a call from a friend today, thanks to National his rent is going up.
I’ll call him Ned. He’s retired and rents a two bedroom home for $310 a week. He recently received a letter from his landlord advising him of a rent increase of $40 a week. He’s sure his landlord is preempting proposed GST hikes and changes to tax on rental properties. Ned’s landlord is a family trust that owns a lot of property in his area. Ned took a straw poll and found most other tenants had got the same letter.
In the past his rent might increase be perhaps $10 a week a time, never anything as steep as $40 a week extra. He did some more asking and found that other friends who rent from different landlords were also getting notice about rent hikes. A young immigrant family operating a corner shop dairy have been hit with a $70 a week increase. That’s a lot of money to find from nowhere.
It seems in the absence of any detail before the Budget, landlords are just making up figures to offset coming changes to the way rental property is taxed. Seems they’re covering every angle to make sure that if anybody’s losing out, it sure won’t be them.
So it looks like a 2% increase in Ned’s pension isn’t going do much to offset his almost 13% increase in rent.