Putting $ caps on residential rents, would it work
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| 1 | Capping rent increases and managing residential rentals more like Commercial rentals, could it be the solution to nz rental problem? Or would it lead to fewer rentals made available argentum47 - 2020-12-26 14:30:00 |
| 2 | Depends what NZ's 'rental problem' is. Not a lot of point in proposing solutions if the 'problem' is not identified. Not sure the problem is that rentals are out of reach for some households. Because in many locations rentals are snapped up immediately. If they remain empty - why? Lack of demand? Doesn't meet current compliance. No suitable tenants applying for whatever reason - history, credit, insufficient income, landlord just says no to applicants? Would rent controls solve any of those issues? Maybe some landlords would choose risky tenants just to get the income coming in. Once. artemis - 2020-12-26 15:01:00 |
| 3 | I read that article earlier. In commercial properties the tenants are responsible for all the fittings, maintenance, decorating, the insurance and rates etc. We had one commercial property. We also split the cost of the maintenance and checking of the fire alarm set up princess52 - 2020-12-26 15:17:00 |
| 4 | argentum47 wrote: apollo11 - 2020-12-26 15:32:00 |
| 5 | apollo11 wrote: exactly. A very compelling argument for protecting tenants from the inactivity of government. sparkychap - 2020-12-26 17:42:00 |
| 6 | As a previous poster has said, commercial tenants foot all the expenses (i.e. rates and insurance and maintenance) The only mainteance the landlord is responsible for is the roof - we found this out when we had a leak = even then he disputed it! Further along we ourselves had a commercial building and it was let out in two parts. In the end both tenants defaulted (both went broke) and we lost some $80,000. In todays situation I would be hesitant to invest in commercial property and I think the next two years particularly are going to be hard and there will be defaults and firms folding. At least with residental property you are somewhat more secure as people need a roof over their head. Personally I thinking "capping" rentals will not work and more landlords will opt out and sell up. Capricorngirl mlarkin - 2020-12-26 17:54:00 |
| 7 | Rents are, to an extent capped already for the individual. They pay up to an amount and many are eligible for the Govt to pay the rest through the Accommodation Supplement. I wonder if taking away the AS that the govt puts in would have an effect in pushing down rents to something affordable? Much more work needed to define the problem. We need more social housing but will this bring private rents down? When we were stocked up with social housing pre the neolib sell offs were rents more affordable for the rest that was on offer? shanreagh - 2020-12-26 19:56:00 |
| 8 | shanreagh wrote: take away the accommodation supplement and give it back to people who are buying their own home, and put more people in state houses, pretty much like it was before Jim bolgers national government ruined it all. lakeview3 - 2020-12-26 20:55:00 |
| 9 | 'Rent freeze' where once you shift in, the rent stays the same no matter how long you live there. marte - 2020-12-27 03:53:00 |
| 10 | To have a rent freeze as the last poster suggested is not feasible long term.Perhaps you could stipulate a freeze for the first year or two, but rates, insurance and maintenance increases would probably then force an increase for private landlords anyway. The original state housing scheme was excellent and many families thrived under this. However, it was always meant to be a hand up not a hand out. I know of several families who lived their whole lives in the low rental state system both in Hutt Valley, Titahi Bay, and Auckland. There was no incentive to save and buy their own property, even tho in all cases they eventually were earning good wages and their children were contributing while staying home. This situation became very apparent when large scale clearance of state houses in Glen Innes happened and the longtime tenants wouldn't move out. Capricorngirl mlarkin - 2020-12-27 09:10:00 |
| 11 | Nearly 900 households in public housing are paying market rent (September). That means the household income is high enough so it does not qualify for a taxpayer subsidy. The previous National government implemented a policy to support those households into private sector rentals or home ownership. Hundreds succeeded. No longer a policy. Meanwhile social housing waiting list in September 2020 is up 53% on September 2019. artemis - 2020-12-27 10:06:00 |
| 12 | That article mentions Germany as a model to follow, but only picks bits of it. masturbidder - 2020-12-27 21:54:00 |
