Rotorua housing shortage: Woman paying $350 a week for motel unit

Fenton St, where a number of motels are used to house homeless. Photo / File

The Ministry of Social Development is reassessing the living situation of a Rotorua woman living in motel housing after she spoke out about the high cost of rent and being frightened at night.

The woman, who spoke to the Rotorua Daily Post Weekend on the condition of anonymity, is confused about why she is paying $350 a week to rent a one-bedroom studio unit at a local motel.

The woman, who lives with her daughter, signed a tenancy agreement with Visions of a Helping Hand Charity in August last year.

She found herself with nowhere to live last year after going through a marriage breakdown with her former partner. The couple own a house together but she moved out.

The woman said she was left with $113 a fortnight of a government allowance after rent. Money was also taken out of her allowance to pay back her $1400 bond for the motel unit.

The woman said she also received about $350 as part of her daughter's disability allowance. This money went towards other living costs like food, transport, medical care and other needs for her daughter.

A tenancy agreement viewed by the Rotorua Daily Post Weekend stated the rent for the studio, with kitchenette and bathroom, covered two people and included power and wi-fi.

The woman believed her room was one of the "nicest, newest units" at the motel, which the Rotorua Daily Post Weekend is not naming to protect the woman's identity.

But she said another unit with a separate bedroom, bathroom and kitchen, occupied by two tenants, was charged the same weekly rent.

"The size suits my daughter and I - because I know where she is, I can see her. But I want to know how they base their pricing."

The woman also expressed concern about the safety at the motel.

She claimed one previous tenant with mental health issues had tried to enter her unit and attack her after she called the police.

There had also been instances of people who didn't live at the motel entering the property.

"There are times at night that I get frightened, so it is easier to have my daughter in bed with me. And I think if someone comes in here shooting around, I have got her by the wall. That may sound ridiculous but that's how I feel."

The woman said she wanted to speak on behalf of other tenants who were struggling.

Another tenant at the motel told the Rotorua Daily Post Weekend she paid $450 a week for a two-bedroom unit with a separate lounge, kitchen and bathroom.

She claimed there had been problems with leaking and her front steps flooding when it rained heavily.

Photo / Andrew Warner

Both women said for months, the heating installed in their units didn't work, leaving them cold. It had since been repaired.

"We went months with no heating. That real cold stint we had, I used my oven and the little heater to warm my house up," the second tenant said.

The wi-fi, which was part of the tenancy agreement, did not work until late July.

Central City Rentals owner Paul Carter said his company managed the property on behalf of the owner, and it was sub-rented to the charity.

He was unable to disclose how much the charity paid in weekly rent.

"They are the principal tenant, and then they do their individual tenancy with the people they are holding."

Carter said tenants needed to raise their issues with Visions of a Helping Hand, which then would pass it over to his business if needed.

"If it is something the landlord needs to pay for then we will get it sorted from our end."

He said there had already been some "major costs" to the landlord including insulation and repairing thermal erosion of the drainage and driveway.

Carter was aware the wi-fi was not working for motel tenants and said it would be repaired as soon as possible. However, he reiterated that it was not a "tenant right" to have wi-fi.

He also said there were some roof leak issues at the site which they were working to resolve.

"We have got quotes from roofing companies in Rotorua. The landlord has agreed to it, the problem now is the timeframe to get the job done," he said.

"The roofers are incredibly busy at the moment. We are trying to find a temporary remedy for it at the moment."

Carter said any issues they were made aware of at the property were "dealt with immediately".

"There is nothing that we have ignored or turned away from. We have fixed everything that we can, in the best time that we can," he said.

Carter said the lack of housing in Rotorua was "strangling" the rental market.

"The work Visions does is incredibly important. They are trying their best, we are trying our best in an environment that is extremely hostile to renting."

Ministry of Social Development (MSD) Bay of Plenty regional commissioner Mike Bryant said they were now "reassessing" the woman's entitlements to see if they could provide additional support.

Visions of a Helping Hand was not a provider of housing for MSD, he said.

"As such this is a private rental situation, one where MSD has no role in setting rents, or responsibility for resolving issues, eg lack of heating etc, arising between a tenant and landlord. Ultimately, such issues would be a matter for the Tenancy Tribunal.

"MSD offers a range of support for people facing financial hardship, and we would encourage anyone in that situation to contact us."

Visions of a Helping Hand was approached for comment.