The Premium Debate: Subscriber views on rising Tauranga rents

The average rent in Tauranga hit a record $600 a week in November. Photo / Getty Images

OPINION
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Lockdown-fatigued Aucklanders are snapping up rentals in Tauranga, helping to put the November median average rent to a record high of $600 a week, up from $520 a year ago.

Is anyone except for perhaps Ardern and Robertson actually surprised that rents are rising rapidly? When you: 1) Massively add to landlord costs, 2) Make it virtually impossible to evict problem tenants, 3) Don't allow landlords to deduct legitimate interest expenses, 4) Unfairly blame landlords for increasing house prices, 5) And of course print ridiculous sums of money and spend it poorly. Then you get rising rents. Along with a whole lot of other unintended consequences that are only just starting to materialise. If only we could have seen this coming.
- Darren B

As hard as it is for many to understand the difference between cash flow, revenue, profit and unrealised capital gain, the fact is that the returns are no longer there in rental property (in most parts of the country). That means landlords have to subsidise in hope for a capital gain at some time but with returns at 3 to 4 per cent, that's a lot of subsidy. The smaller landlords will not be joining the market, whether that's good or not is a whole separate thing. The Govt can't afford to accommodate everyone who needs a home. The Govt really doesn't understand the consequences of its policies.
- Sudhir M

Australia removed negative gearing and in two years rents skyrocketed around 30 per cent in three capital cities before they realised it was a mistake. Expect the same in NZ, the result of ill-thought-out tax law by the current Government. Completely predictable.
- Simon A

There was a stage when we had plenty of rental properties thanks to mum-and-dad investors. Most of us have sold up due to this wonderful government's policies. The ones that stayed need to be very careful who they put in a property - gone are the days when you could feel sorry for a family and give them a chance - if they don't pass with flying colours - they will be waiting for the Government to house them.
- Pip W

The government was warned not to remove the tax deductibility from rental properties and they did. This is the result. Increased costs which are market-wide will always result in increased rents. This government's housing policies have been an absolute disaster, much like everything else they meddle with.
- Richard T

Government policy is hurting both landlords and tenants. Where is the logic? Tax changes are forcing some landlords to sell older properties and exit the market or purchase new houses as replacements. Over time this trend will increase as landlords rebalance portfolios and new landlords enter the market. Renting a new home will always be more expensive and demand higher standards from tenants. Did the Government ever consider this and what tenants actually want and can afford? Many tenants may prefer to pay cheaper rent for a comfortable older home than a new build or being homeless.
- Tony L

We have some rentals around us in Mount Maunganui that are certainly not filled with "good" tenants. Regular drug use, lots of parties. Council says to talk to police, police are not interested, where do you go? Where are these good tenants?
- Jeremy H

- Republished comments may be edited at the editor's discretion.

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