"I wouldn't like to see private people taking it over because we wouldn't have the same securities and service," she said.
The 91-year-old said an increase in rent for her $82-a-week "dinky" one-bedroom flat to $111 would mean she would have to cut back on what she spent at the supermarket each week.
From November 1 next year the cost of renting a bedsit will increase from $58 to $78. Rent for a two-bedroom unit will rise from $121 to $163.
Dorothy Miller, aged 85, who lives at a Clarkin Rd unit in Chartwell, said she wanted as compassionate and empathetic a landlord as she currently had.
She was worried a private landlord would turn a blind eye to the elderly and properties would be neglected.
The council also agreed to sell off its three most decrepit properties and re-house 51 pensioners into warmer and safer properties over a year.
Councillor Ewan Wilson said it was an easy decision to sell the three rundown properties and put the money into council coffers.
The council will now have talks with Housing New Zealand about selling its entire housing for the elderly portfolio as it questions whether it should be in the business of being a landlord of pensioners.
FOR SALE
River Rd, 12 units, built in 1980 CV $1.1m
Johnson St, 12 units, 1962 CV $1.22m
Ascot Reid Ryan, 27 units, 1974 CV $720,000