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16399 posts

Uber Geek


  #2431994 3-Mar-2020 17:16
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MikeB4:

 

 

 

A house/Flat/Apartment does not get more expensive to own once purchased because of low stock. Landlords are increasing rents because they can and because they are greedy. I agree that NZ needs to tidy up its laws and processes concerning consents but even that does not help those caught in the rent trap due to rising rents and diminishing ability to save to meet the deposit of housing market out of control. Renters are not the problem home owners/sellers, landlords and agents are the problem. 

 

 

 

 

The rental price increases are also due to the high capital cost to buy the house, and it's value on paper.. If a house was worth 500k 5 years ago, and is now worth 1 million, then the rent for that property would also likely have to raise significantly over that time. My understanding is because if someone was starting out buying a rental property today, they would be buying that property at 1 million dollars, so the rent they need to get that amount, would need to reflect that. People who already own rentals, therefore can raise their prices to match this. If they didn't rise, then noone would be able to buy an investment property to rent out, as they need to get a certain amount of rent to cover cost such as the mortgage. If they aren't at least covering the mortgage, then the landlord is essentially paying to have someone else live in their house, and therefore solely relying on potential capital gains, which may or may not occur.  I don't know how some people can rent their houses out and make any profit, when you take into consideration all the costs, and hassles. Insurance, rates, maintenance and big ticket replacement costs are all very high.


273 posts

Ultimate Geek


  #2431999 3-Mar-2020 17:36
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@tripper1000

The implicit presumption here is that rentals are old and freehold and that the rent rises go straight into the landlords back pocket.

Sat what, Where did get that from?
Landlord's are doing very well out this "bubble" ( when oh when is gonna burst!)

The truth is few are free hold, old rentals are unattractive to quality tenants and most rentals run at a loss - therefore subsidising the tenants living costs. To the majority of landlords, rent rises simply mean the property is running at less of a loss & few would define that as greed.

Ha ha, thats the most ridiculous thing I've ever heard on the housing crisis yet! Maybe not free hold but it's besides the point.




tenkan

 
 
 
 


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  #2432131 3-Mar-2020 21:20
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TENKAN: Ha ha, thats the most ridiculous thing I've ever heard on the housing crisis yet! Maybe not free hold but it's besides the point.

OK, @TENKAN I'll bite. What is the point that it is beside?







319 posts

Ultimate Geek


  #2432183 3-Mar-2020 23:11
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Disclosure, current renter, family owns rental properties in another city. They’re freehold and cost bigger all to run. Rates, insurance and a bit of maintenance here and there. Rent is basically money for jay now for us.

Charging the advertising fee like this is probably illegal, and certainly slimy. If you’re that desperate to charge it, bump the rent up.

As for letting feed being property managers getting paid - IME Property managers charge a weekly rate, often 8-10% of the rent. The letting fee was always a cheeky way of making someone else cover costs that should have borne by the landlord (as the customer) or the PM (as a business).




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  #2432220 4-Mar-2020 08:51
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I was a landlord for about a year when I moved towns and had to rent for a while. Horrible experience, wouldn't wish it on anyone. Two out of three tenants never paid all the rent they owed, were nearly impossible to evict because they know the system, and there is no sympathy for landlords regardless of the situation. Also when the house sits empty for a few weeks there's no way to recover those cost.

 

 

 

 


5751 posts

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  #2432633 4-Mar-2020 17:40
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tripp: God the person is even asking for a payslip. Big red flags for this.

 

I would never rent our property to anyone without proof of identity, proof of income, referees and a credit check.  Once I make a decision about whether someone is suitable tenant (or not) I delete all the info the provided to me. 

 

I'm trusting a stranger with a $400k asset, the more I can de-risk, the better.  If I couldn't de-risk in this way, I would have to either charge a higher rental (price in the risk) or consider another way of generating income from the property.

 

 

 

 

 

 

 

 





Mike

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Ultimate Geek


  #2432681 4-Mar-2020 18:27
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MikeAqua:

 

tripp: God the person is even asking for a payslip. Big red flags for this.

 

I would never rent our property to anyone without proof of identity, proof of income, referees and a credit check.  Once I make a decision about whether someone is suitable tenant (or not) I delete all the info the provided to me. 

 

I'm trusting a stranger with a $400k asset, the more I can de-risk, the better.  If I couldn't de-risk in this way, I would have to either charge a higher rental (price in the risk) or consider another way of generating income from the property.

 

 

I wonder what would happen if a tenant asked the same in return? ID, credit check, proof of income, etc.

 

 


 
 
 
 


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Ultimate Geek


  #2432684 4-Mar-2020 18:31
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I was thinking exactly the same thing!
Credit checks and proof of income are unwarranted for rental purposes, all the rest sure, but that really personal information shouldn't be given to people you don't know or trust.




tenkan

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  #2432779 4-Mar-2020 20:50
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Having been through rental hunting quite recently. I'd have to say all the red flags mentioned above and even more shows up.

Even went to one place that had black mold all through one of the rooms, holes in some of the walls and they thought it was in condition to take ownership straight away.




#include <std_disclaimer>

 

Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.

 


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  #2432780 4-Mar-2020 20:52
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Oh. I also did have a few ask for paychecks. Avoided those. A few agents were sly saying your welcome to submit paychecks so we know you can afford it.

Others ask for assisting documents and recommend a bank statement.
What ammzes me is that people willingly hand that over...




#include <std_disclaimer>

 

Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.

 


1203 posts

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  #2432863 4-Mar-2020 23:34
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Many people in this conversation seem to bought into the left wing line that it should be an adversarial relationship. The deal is doomed to misery if that's the way the tenant or the landlord view it.

 

mudguard: I wonder what would happen if a tenant asked the same in return? ID, credit check, proof of income, etc.

 

And I suppose a bank shouldn't ask for this info before extending a line of credit either or a rental car company or hotel ID you & take a credit card imprint before handing over the keys?? C'mon!

 

That was actually almost a good point to make until it totally missed the mark on the type of documentation to ask for. The landlords credit, ID and income has little to do with tenants welfare and having a happy healthy home - the tenants are paying for a healthy home, not the landlord. It would be far smarter if tenants exercised their rights to see documents that are pertinent to having a happy healthy home, but few seem smart enough to do so. It would certainly steer them away from shonky landlords and places like the one we're talking about.

 

For example:

 

1) All rentals have to meet the Healthy Homes act (minimum standards for insulation & heating), so tenants are entitled to see the certification - few if any do. The ones complaining in the media certainly didn't. What good is a law to shield tenants from bad rentals when tenants don't use that shield? Talk about leading a horse to water....

 

2) All (smart) landlords perform meth tests prior to tenants moving in, and before returning the bond at the end (mandatory for some insurance policies, mandatory with many property management agencies). Tenants have a right to see the results to ensure the house is safe - none ask about it before they move in - sup with that?

 

3) Code of compliance. All homes must have one before they can be legally lived in. Being safe and sanitary is fundamental part of this. Therefore tenants have the right to know the house is up to code.

 

I'd bet a chocolate fish to anyone that the places in that listing have neither a meth test or a Healthy Homes certificate or a CofC for that kitchenless flat.


16399 posts

Uber Geek


  #2432867 5-Mar-2020 00:01
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tripper1000:

 

 

 

1) All rentals have to meet the Healthy Homes act (minimum standards for insulation & heating), so tenants are entitled to see the certification - few if any do. The ones complaining in the media certainly didn't. What good is a law to shield tenants from bad rentals when tenants don't use that shield? Talk about leading a horse to water....

 

2) All (smart) landlords perform meth tests prior to tenants moving in, and before returning the bond at the end (mandatory for some insurance policies, mandatory with many property management agencies). Tenants have a right to see the results to ensure the house is safe - none ask about it before they move in - sup with that?

 

3) Code of compliance. All homes must have one before they can be legally lived in. Being safe and sanitary is fundamental part of this. Therefore tenants have the right to know the house is up to code.

 

 

 

 

 

 

People forget that all these  things increase the price of the rental, or may end up preventing a house or flat being rented out at all. I suspect in the not to distant future, all rentals will need to have an annual  warrant of fitness, with more companies clipping the ticket in doing this work.

 

People also wonder who tiny homes have to get a building certificate, and can't get around that cost. It is because they have to be safe and sanitary.


16399 posts

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  #2432869 5-Mar-2020 00:03
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MikeAqua:

 

tripp: God the person is even asking for a payslip. Big red flags for this.

 

I would never rent our property to anyone without proof of identity, proof of income, referees and a credit check.  Once I make a decision about whether someone is suitable tenant (or not) I delete all the info the provided to me. 

 

I'm trusting a stranger with a $400k asset, the more I can de-risk, the better.  If I couldn't de-risk in this way, I would have to either charge a higher rental (price in the risk) or consider another way of generating income from the property.

 

 

 

 

Do you get renters insurance to cover risks of a bad renter? I was looking at the policies, and they are really high compared to the potential rent I could get on a house. So it is a huge gamble making sure to get a good tenant, especially in some areas.


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  #2432879 5-Mar-2020 04:48
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mattwnz:

 

Do you get renters insurance to cover risks of a bad renter? I was looking at the policies, and they are really high compared to the potential rent I could get on a house. So it is a huge gamble making sure to get a good tenant, especially in some areas.

 

 

I think I pay an extra $600 a year for rentsure + house insurance for a rental. It's an excellent risk mitigation.


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  #2432880 5-Mar-2020 04:53
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MikeB4:

 

When we were considering doing some extended travel we looked at renting out our home. We contacted a couple of agents and they advised that we should charge around $1,000 per week based on their formula. It currently costs us around $120 per week. When I told them that was a ridiculous amount one of them advised he would refuse to manage it unless I charged that amount. I would never charge that amount of rent for my home and simply could not sleep at night. I have no intention of being part of the problem. I told them to bugger off. 

 

 

I guess I'm the problem with my 3.3% gross return on invested capital.

 

I have a rental property that I charge over $700 a week rent. Given that my mortgage payment is another $200 a week on top of that I consider that excellent value for the tenant. It has also depreciated around $50k due to being bought at the top of the market (it is our family home but I now live overseas).

 

Compared to property prices NZ rents are very low. That doesn't make them affordable but it also doesn't mean that the landlord is the issue - the market charges what it will bear.


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