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Thursday, February 26, 2009

EXTERMINATE TENANT RIGHTS! EXTERMINATE!


Shortage spells good times for landlords
The rental market, particularly in Auckland, could be about to turn.
After years of plentiful supply and tenants being able to pick and choose, some experts are picking a big change. Auckland has more than 5400 places to rent, web data shows but Robert Mellor, the managing director of consultants BIS Shrapnel, said the city would soon not have enough places to rent. Mr Mellor said the city's population was growing by about 22,000 people a year but only a few thousand consents were being given for new dwellings. BNZ chief economist Tony Alexander also said rental property was becoming a more attractive investment. Landlords were achieving good rent increases as pressures started to build in parts of the country, he said. "There has been a strong increase in lettings of property in Auckland over the past few months but a rent response has yet to occur," he said. "In the past few years the annual number of dwelling consents in New Zealand has averaged about 24,000. Over the past three months the annualised rate was below 14,000. Where are all those people, who were finding accommodation unaffordable before, going to find places to live?


So with a massive swing of power to the landlords, why the hell is National changing legislation to give their property owning voters EVEN MORE POWER? Surely if the mechanics of the market are now demand driven rather than supply driven, why add extra powers for landlords and take NZ closer to a slumlord paradise?

5 Comments:

At 26/2/09 7:51 am, Anonymous sdm said...

Why are you against measures that allow the landlord to protect their investment from damage caused by the tenant?

How long should a tenant be allowed to go without paying their rent before the landlord is allowed to act?

 
At 26/2/09 7:53 am, Anonymous Andy said...

Tony Alexander = Always wrong, all the time.

Rents are very soft on the fringes of Auckland, there is a glut of properties. Lots of Accidental landlords out there. Many properties that can't sell go straight to rentals, especially after the summer selling season.

If you can move in immediately and the place is empty ask for a reduction of rent.

There is a shortage in Alexanders connection with reality, this is the guy who said we would not have a recession. Can he not get trade me on his work computer?

 
At 26/2/09 7:58 am, Anonymous sdm said...

Andy

1) People losing their jobs - if they cant buy, they rent.

2) Rental Yield is now getting more attractive with low interest rates.

 
At 26/2/09 9:04 am, Anonymous Andy said...

sdm, no argument there. Also the potential buyers are already renting, so discount them. The problem for economists is they can't see the amount of empty properties in the stats they use, or the amount of churn out in rental land. Ivory towers and all that..

Poorer families are doubling up. So if your an investor my advise is to go for a large 4+ bedroom and build a sleep out if possible.

There is lots of stress out in the suburbs at present. There is

 
At 27/2/09 11:05 pm, Anonymous Anonymous said...

I sold the last of my investment properties about a year ago - it was more trouble than it was worth.

There are good tenants but it only takes one bad one to cost you $10,000'ssss and give you stress you don’t need.

The tenancy tribunal is generally hopeless, takes far to long to get a hearing to get bad tenants out, a lot of tribunals are very much on the side of tenants (even when they owe rent, or have wrecked the place) in the mean time tenants get to live rent free and then do a runner on the day of the hearing.

If you want to do it my advice is - present your property well, run an open home get people to fill in an application form and choose who is best for you, get a Bay-Corp credit check (if they are reluctant to fill in their form that tells you all you need to know) look after it yourself (property managers are worse than useless) and take immediate action (issue a 90 day notice) if a tenant shows any sign of dis-respecting you or your property.

Also avoid tenants who do not work – many have a dependency mentality (they call you if a light bulb goes) some beneficiaries enjoy the courts - they still get paid and it gives them a feeling of power and importance, they get to tell a pack of lies and sob story to some idiot who has no understanding of the real world, on the other hand you have to take time away from work and lose income to be there, if you need to bring tradespeople as witnesses you have to pay them and you can not claim a cent, tenants who work generally have more respect for time and money, they also have more respect for themselves and other people.

I did OK, but on the whole not really worth it these days.

One thing that did amaze me, was how much money supposedly 'poor' people seem to have, a few years ago I have a tenant on the DBP, he was arrogant, had every agency giving him everything he asked for, though he was some sort of saint because he was a single father, (I find a lot of people seem to think male single parents are something admirable and special, these same people often have little time for female single parents) had every latest gadget, took his kids away on holiday - while I was skimping and saving to pay the mortgage and bills, makes you wonder if its worth working sometimes.

I had to tell myself that over the long term I would prosper more than people like him - being on a benefit is a short term gain for a long term loss, not sure if that’s true but it made me feel better to think that.

Like the 40% of people in the bush fires who either had no insurance or who were underinsured, I have totally lost patience with people like that - I don't like paying my insurance either but I do, if these irresponsible free loaders get bailed out it will be yet another bad message - being an irresponsible waster pays, going without and being sensible and responsible is a mugs game.

 

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