Tenant paying $390 per week and the market value is $580. Is there a % amount limit to increase. Wanting to go at least $475 per week but some one said increase limited to 7%. At that rate I will never catch up as rents increase that much anyway. How can I catch up . It doesn’t matter why I kept the rent low so no need to comment on this. Ringing Tenancy Services tomorrow

Edited by pisces47 at 6:23 pm, Wed 11 Aug

pisces47 - 2021-08-11 18:21:00

I wasn't aware of a percentage amount, it's as long as it fair market rent.

annie17111 - 2021-08-11 19:12:00

annie17111 wrote:

I wasn't aware of a percentage amount, it's as long as it fair market rent.

this. other restriction is you can only increase rent once a year.

kittylittle - 2021-08-11 19:13:00

pisces47 wrote:

Tenant paying $390 per week and the market value is $580. Is there a % amount limit to increase. Wanting to go at least $475 per week but some one said increase limited to 7%. At that rate I will never catch up as rents increase that much anyway. How can I catch up . It doesn’t matter why I kept the rent low so no need to comment on this. Ringing Tenancy Services tomorrow

that’s a lot to increase it by. Probably they will have to leave. So if they are a good tenant why not only increase it by a very small amount. Better the devil you know sometimes. Especially if you have owned it a while and it doesn’t owe you much.

lakeview3 - 2021-08-11 19:16:00

You’re doing no one any favours by letting it get so far behind. The tenants will be laughing at your kindness. How can you afford the upkeep? Only one chance per year to raise the rent. So put it up to market value.

pcle - 2021-08-11 19:21:00

pcle wrote:

You’re doing no one any favours by letting it get so far behind. The tenants will be laughing at your kindness. How can you afford the upkeep? Only one chance per year to raise the rent. So put it up to market value.

sounds like he’s been doing his tenants and favour and if they are good tenants then what is wrong with being decent or nice? There’s a radical concept.

lakeview3 - 2021-08-11 19:52:00

lakeview3 wrote:

sounds like he’s been doing his tenants and favour and if they are good tenants then what is wrong with being decent or nice? There’s a radical concept.

Rental property is a legitimate business. Now that labour has taken any incentives, why would a landlord charge less than market rent?

mulch_king - 2021-08-11 19:55:00

Besides, it's a free world. If tenants don't like the rent increase they can go and buy their own home. There's another radical concept.

Edited by mulch_king at 7:58 pm, Wed 11 Aug

mulch_king - 2021-08-11 19:56:00

OP, where is your fair market rent coming from? If it is a property manager touting for business then they will be aiming high.

You need to factor in what your current tenant is worth to you and how much it will cost you to change, also the risk introduced by a new tenant.

tony9 - 2021-08-11 20:03:00

If the tenent pays their rent and doesn't wreck the place, it can be worth it to have lower rent.

tygertung - 2021-08-11 20:14:00

Look at the MBIE website they have a current rents for all areas and a breakdown of property types.

You are doing yourself and others no favours by keeping the rent low.

Its like giving them 200 dollars a week out of your pocket.

kenw1 - 2021-08-11 20:15:00

tygertung wrote:

If the tenent pays their rent and doesn't wreck the place, it can be worth it to have lower rent.

$100 per week? I’d roll the dice on a new tenant at that sort of money

skiff1 - 2021-08-11 20:16:00

Thats around 10k a year, a lot of dosh, we make sure our PM keeps rents right up to date.

If you ever have to sell with a tenant in situ, something like this is a liability and would reduce the price of the property significantly.

kenw1 - 2021-08-11 20:42:00

annie17111 wrote:

I wasn't aware of a percentage amount, it's as long as it fair market rent.

There is no % and the landlord can charge whatever they like. Tenants have the right to ask the Tenancy Tribunal for a reduction is the rely higher than market. (Not fair market rent.) Tenants also have the right to move after giving correct notice.

artemis - 2021-08-12 05:34:00

kenw1 wrote:

Look at the MBIE website they have a current rents for all areas and a breakdown of property types.

You are doing yourself and others no favours by keeping the rent low.

Its like giving them 200 dollars a week out of your pocket.

Market rent data on the Tenancy Services website is incomplete, up to 7 months old and takes no account of condition and other relevant factors. Too old to be the only factor when rents continue to rise and there is a shortage in many locations.

artemis - 2021-08-12 05:38:00

lakeview3 wrote:

sounds like he’s been doing his tenants and favour and if they are good tenants then what is wrong with being decent or nice? There’s a radical concept.

so if you were selling your car for $2000 and someone turned up to buy it but only had $1000, would you sell it to them cheaper so you are being decent or nice?

annie17111 - 2021-08-12 07:30:00

artemis wrote:

Market rent data on the Tenancy Services website is incomplete, up to 7 months old and takes no account of condition and other relevant factors. Too old to be the only factor when rents continue to rise and there is a shortage in many locations.

So it sets the minimum then, I note they say that it includes bond returns within the current month or something similar.

kenw1 - 2021-08-12 07:33:00

Increase it to market rent and if the tenant leaves, you'll no doubt get another one in who's prepared to pay market rent. For decades I've been a halfwit and charged way less than I should have on many, many occasions but not any more. My expenses have increased considerably under this government.

And before I get the "but so has your equity" argument, that "equity" is just an empty figure on a calculator until it's in my bank account.

seaqueen - 2021-08-12 07:57:00

skiff1 wrote:

$100 per week? I’d roll the dice on a new tenant at that sort of money

Say if you have stress free tenants who have been in the place for five years without any issues. Dream tenants. Would you be willing to accept a little less rent? You've had 100% occupancy, and zero issues.

We have such tenants. We will have to raise the rent a little when the new laws come in about the interest on the mortgage, but will try to make it a minimum raise.

tygertung - 2021-08-12 08:13:00

kenw1 wrote:

Look at the MBIE website they have a current rents for all areas and a breakdown of property types.

You are doing yourself and others no favours by keeping the rent low.

Its like giving them 200 dollars a week out of your pocket.

If O/P has a loan, the cost is even more.
Rest home subsidy might be years away but so does M.S.D. investigation.

amasser - 2021-08-12 08:36:00

You are looking at a $190 per week increase... which in any bodies language is quite steep.. As stated if they are a good tenant then there is some "value" in that, but it not so much money wise, but just in peace of mind wise, your mental health not having to lay awake at night hoping the tenant will pay their rent on time or trash the place. If you have a good relationship with your tenant then you need to talk to them and make them aware that the current rent is well below market and as such you want to increase it and then perhaps just increase it by $100... still below market but a bit closer to market now !!

onl_148 - 2021-08-12 11:46:00

How much of the new 39% tax just added will the Government forgive? Perhaps 28% is more "fair"?
How much of the increased interest rate will the bank forgive? Perhaps 0.5% is more "fair"?
How much of the increased rates will the council let you off? Perhaps only a 5% rise is more "fair"?
How much of the increased insurance will IAG let you off? Perhaps only a 3% rise is more "fair"?

pcle - 2021-08-12 12:13:00

pisces47 wrote:

Tenant paying $390 per week and the market value is $580. Is there a % amount limit to increase. Wanting to go at least $475 per week but some one said increase limited to 7%. At that rate I will never catch up as rents increase that much anyway. How can I catch up . It doesn’t matter why I kept the rent low so no need to comment on this. Ringing Tenancy Services tomorrow

Sounds like the tenant has had it for below market for some time and even with the increase, it is still well below market. My guess is they won't find a comparable property even at the increased rent level.
They must know what the rent is on other places in their area? so not really a surprise.

thumbs647 - 2021-08-12 13:23:00

pcle wrote:

How much of the new 39% tax just added will the Government forgive? Perhaps 28% is more "fair"?
How much of the increased interest rate will the bank forgive? Perhaps 0.5% is more "fair"?
How much of the increased rates will the council let you off? Perhaps only a 5% rise is more "fair"?
How much of the increased insurance will IAG let you off? Perhaps only a 3% rise is more "fair"?

"Since this is an era when many people are concerned about 'fairness' and 'social justice,' what is your 'fair share' of what someone else has worked for?" Thomas Sowell

artemis - 2021-08-12 15:04:00

If you have had it that for all this time, why put it up, except greed? What does market value matter?

lythande1 - 2021-08-12 15:15:00

lythande1 wrote:

If you have had it that for all this time, why put it up, except greed? What does market value matter?

Possible scenarios: The OP has a medical condition and needs urgent treatment, the OP's parent is ill and needs urgent medical attention, the OP's family is in Aussie and they need to move and have no employment prospects there, the OP has lost their job and needs the money, the OP is starting a new business and needs the money, the OP has split from his/her partner so needs extra money to live on...just a few thoughts.

seaqueen - 2021-08-12 17:36:00

Also, I don't think $85 a week extra is too high at all.

seaqueen - 2021-08-12 17:40:00

$85 is about $3 a hour out of their wages.
Yep, depends if its a family or flatmates. Keeping rent lower to keep good tenants can be better security than the other option of unknown tenants with unknown results.
But the extra rent $ counts as income & thats what gets loan $$ to buy other houses.
The OP will figure out what they are going to do knowing all of the details.
But the rents going to go up....

Edited by marte at 7:16 pm, Thu 12 Aug

marte - 2021-08-12 19:15:00

Just hope that you can get your rent increase in before the Greenies get their rent controls set.

keys - 2021-08-12 19:16:00

seaqueen wrote:

Also, I don't think $85 a week extra is too high at all.

really? How many hours of work do you have to do to pay for an extra $85 in your hand?

lakeview3 - 2021-08-12 19:23:00

seaqueen wrote:

Also, I don't think $85 a week extra is too high at all.

might not be to you ..but for some it can make a huge difference. it could mean the difference between say having to cut back on things such as food

cathi - 2021-08-12 19:50:00

Oh well, if the rents too high and they can't afford it or anywhere else then they can always move into a motel and only have to pay 25% of their income with no power bill or water bill to pay. It's a win win for them and the government will recoup the cost from the taxpayers including landlords.

mazalinas - 2021-08-12 20:04:00

mazalinas wrote:

Oh well, if the rents too high and they can't afford it or anywhere else then they can always move into a motel and only have to pay 25% of their income with no power bill or water bill to pay. It's a win win for them and the government will recoup the cost from the taxpayers including landlords.

exactly Maz and as a parting gift put some fish inside all the curtain rods…..or worse…..the mind boggles….

Edited by lakeview3 at 8:31 pm, Thu 12 Aug

lakeview3 - 2021-08-12 20:30:00

lakeview3 wrote:

exactly Maz and as a parting gift put some fish inside all the curtain rods…..or worse…..the mind boggles….

If people don’t like high rents then maybe they should show some concern when taxes and costs are increased on them.

pcle - 2021-08-12 20:35:00

pcle wrote:

If people don’t like high rents then maybe they should show some concern when taxes and costs are increased on them.

nah just income and asset test the pension. Will save the country billions. Could spend the money on useful things like education instead of new mustangs for the people who bought all the houses before the others were even born.

lakeview3 - 2021-08-12 20:43:00

pcle wrote:

If people don’t like high rents then maybe they should show some concern when taxes and costs are increased on them.

They are showing concern for high rents. They're refusing to pay them and moving into motels like there's no tomorrow.

mazalinas - 2021-08-12 23:00:00

lakeview3 wrote:

nah just income and asset test the pension. Will save the country billions. Could spend the money on useful things like education instead of new mustangs for the people who bought all the houses before the others were even born.

Anyone with too much money won't have it loaded in a way it is a personal asset. It will be diverted in one way or another, in a trust or business. I also think anyone earning a good income and receiving super will be paying 2ndary tax on the super and paying tax on their other income as well... likely more than the amount of super they get. So you want them to throw in their job which no doubt has supported lots of unemployed motel dwellers or take away their well deserved super to do the same. Perhaps people that have never been on a benefit should get paid more super than those that have.

bryalea - 2021-08-13 06:11:00

bryalea wrote:

Anyone with too much money won't have it loaded in a way it is a personal asset. It will be diverted in one way or another, in a trust or business. I also think anyone earning a good income and receiving super will be paying 2ndary tax on the super and paying tax on their other income as well... likely more than the amount of super they get. So you want them to throw in their job which no doubt has supported lots of unemployed motel dwellers or take away their well deserved super to do the same. Perhaps people that have never been on a benefit should get paid more super than those that have.

people on a benefit shpild never get something for nothing, that’s part of the problem. If they want free stuff, they need to do something in return. But don’t kid yourself into thinking all the wealthy people are the biggest taxpayers, because they are not. It’s the middle income wage and salary workers, people on minimum wage who pay the largest amounts of income tax in relation to income.

lakeview3 - 2021-08-13 07:51:00

lakeview3 wrote:

people on a benefit shpild never get something for nothing, that’s part of the problem. If they want free stuff, they need to do something in return. But don’t kid yourself into thinking all the wealthy people are the biggest taxpayers, because they are not. It’s the middle income wage and salary workers, people on minimum wage who pay the largest amounts of income tax in relation to income.

Should they be given work?

ofaatudesigns - 2021-08-13 08:12:00

cathi wrote:

might not be to you ..but for some it can make a huge difference. it could mean the difference between say having to cut back on things such as food

I'm assuming you think this only applies to the tenant?

Edited by seaqueen at 8:19 am, Fri 13 Aug

seaqueen - 2021-08-13 08:17:00

tygertung wrote:

Say if you have stress free tenants who have been in the place for five years without any issues. Dream tenants. Would you be willing to accept a little less rent? You've had 100% occupancy, and zero issues.

We have such tenants. We will have to raise the rent a little when the new laws come in about the interest on the mortgage, but will try to make it a minimum raise.

At 5 years renting, we place our tenants on 80% market rent.
Haven't got to 10 years yet.

smallwoods - 2021-08-13 08:29:00

ofaatudesigns wrote:

Should they be given work?

well they should have to turn up somewhere and do something for at least 3 days a week. Otherwise their kids just see them sitting around all day doing nothing and think that’s normal and ok. And it’s not.

lakeview3 - 2021-08-13 08:50:00

tygertung wrote:

If the tenent pays their rent and doesn't wreck the place, it can be worth it to have lower rent.

yes this, we have a rental, rented under market rate, good tenants no worries, no damage, rent paid on time,
It is not all about money, (Freehold property), we were better off renting it rather than selling and money sitting in bank doing nothing, and now since Covid, interest rates are so low not funny,
Higher rents, you will probably get a higher turnover of renters, as they will seek out cheaper rent, then property remains vacant for a period with no rent coming in, then you may have problems with next tenants, who may cause damage etc or you may evict or whatever, then it becomes an on going nightmare,

Better to have good tenants with lower rent, with no worries,
If you have good tenants, be happy leave it at that, if money is not an issue and costs are covered, with money still saved, and property value also going up over time?, Your still on a win win situation,
Some market rates are ridiculous and is pushing people over the edge, they are struggling, more ending up on the street in motels, as cannot afford the higher rents,
some cases just show some compassion, Your renter maybe working hard at saving hoping to buy their own place in future, don't penalize them by for no other reason than the market rate that is making you raise the rent to keep up with the Jones?, when you don't have a money worry,
A little bit extra coming in is better than none at all,

Edited by flossy63 at 10:34 am, Fri 13 Aug

flossy63 - 2021-08-13 10:28:00

flossy63 wrote:

.....
A little bit extra coming in is better than none at all,

I don't get why some think owners should subsidise tenants, unless they wish to of course. Nothing stopping those people becoming owners and operating like a charity if they think that's a good idea.

artemis - 2021-08-13 12:46:00

lakeview3 wrote:

well they should have to turn up somewhere and do something for at least 3 days a week. Otherwise their kids just see them sitting around all day doing nothing and think that’s normal and ok. And it’s not.

Perhaps the government could give them a job.

Most people on the dole are looking for work, it is a small minority who don't want to work.

tygertung - 2021-08-13 12:46:00

In business, I believe the best thing is to give the customer the best possible price, that way they keep coming back. All businesses should try to make it as cheap as possible for the customer. Business transactions should be win-win.

I consider if I am getting a bit of rent, and the place is getting treated very well, and I am having no vacant periods, I am winning. The tenant is also winning as they are getting a good quality nicely done up house at a reasonable price.

So what if it is a little below ripoff "market" rent, I don't want to "Rack rent and ruin".

tygertung - 2021-08-13 12:49:00

tygertung wrote:

In business, I believe the best thing is to give the customer the best possible price, that way they keep coming back. All businesses should try to make it as cheap as possible for the customer. Business transactions should be win-win.

I consider if I am getting a bit of rent, and the place is getting treated very well, and I am having no vacant periods, I am winning. The tenant is also winning as they are getting a good quality nicely done up house at a reasonable price.

So what if it is a little below ripoff "market" rent, I don't want to "Rack rent and ruin".

you get wff for families aye? So they government top up your income, so if you are undercharging your tenant, then the tax payer is paying you more because of it. Completely ignore this if you don't get wff.

annie17111 - 2021-08-13 17:35:00

annie17111 wrote:

you get wff for families aye? So they government top up your income, so if you are undercharging your tenant, then the tax payer is paying you more because of it. Completely ignore this if you don't get wff.

Just like if you watch made in NZ movies. Except the tax $ has gone overseas.

pcle - 2021-08-13 17:39:00

tygertung wrote:

In business, I believe the best thing is to give the customer the best possible price, that way they keep coming back. All businesses should try to make it as cheap as possible for the customer. Business transactions should be win-win.

I consider if I am getting a bit of rent, and the place is getting treated very well, and I am having no vacant periods, I am winning. The tenant is also winning as they are getting a good quality nicely done up house at a reasonable price.

So what if it is a little below ripoff "market" rent, I don't want to "Rack rent and ruin".

Is that how you run your business?

curlcrown - 2021-08-13 17:42:00

curlcrown wrote:

Is that how you run your business?

Yes.

tygertung - 2021-08-13 21:19:00