Rental hikes create stress
As Auckland rental prices continue to rise tenants are finding themselves under increasing financial stress.
But one landlord says blame is being misdirected.
Andy C. Saputra moved into his Eden Terrace studio apartment in December 2015.
In April he found out that his rent will be going up by 10 per cent in July.
He says his property manager, who works for Crockers Property Management, told him his rent would increase from $300 per week to $330 as it’s the current market level for the area.
Saputra’s 28 square metre studio room is is in a newly-built apartment complex.
‘‘My rent excludes electricity and water. There is a dryer and washing machine I can use in a communal area for four dollars a time,’’ he says.
Saputra says he contacted the Ministry of Business, Innovation and Employment Tenancy Services about his rent increase.
‘‘I was told it was legal as under the Residential Tenancies Act 1986 a landlord can put rent up after 180 days.’’
With the rent increase, Saputra says he may start looking for cheaper apartments outside of the inner city.
According to the Tenancy Services website the average rent for a one-bedroom unit in Eden Terrace is $400.
Studio apartment rent prices are not listed on the website.
Pam McKenzie, Auckland Central Budgeting Consultants’ manager, says rent ‘‘is the biggest stress’’ for many of her clients.
‘‘If a person earns $1000 a week then three quarters of that may be going on rent,’’ she says.
Saputra has expressed his concerns about his rent increase on neighbourly.co.nz.
John Paynter, who owns rental properties in Sandringham and Balmoral, has also posted a comment on the site from a landlord’s perspective.
Paynter says his rental prices have increased on average of 2.7 per cent per annum while his rates have been compounding at more than 10 per cent per annum for the past three years.
He says property maintenance costs have also increased significantly over the 30 years that he has been a landlord.
Andy C. Saputra’s rent has gone up 10 per cent in just over six months.