Reports that Landlords are attempting to increase profits from overcrowded rental properties has been refuted by Andrew King, Chief Executive of NZ Property Investors Federation in a news item on NZHerald today.
Yesterday a news item suggested maybe overcrowding was an initiative by greedy landlords to maximise profits with student accommodation in Auckland. However Andrew King says hot bedding and overcrowding is not landlord driven.
Hot-bedding is not so common among students it’s more prevalent among shift workers and landlords are less likely to be aware it’s happening. Overcrowding however is a cultural thing among students and it’s been happening for years.
Property management companies like Pedersen Property Management say their landlord clients are advised on expected rental return which is dependent on the number of bedrooms with one to two people sharing. The weekly rates obtained are mostly within current market guidelines. Regular property inspections have proven to prevent additional flatmates moving in unknowingly.
Rent increases in Auckland climbed 5.6 percent in 2015. This compares favourably to property value increases of 11.1 percent. Rent rises are unavoidable as Landlords have been lumped with higher costs including: insurance, rates and the Auckland region 70 percent LVR lending restriction.
This blog article was written for PropertyBlogs by Mobilize Mail.