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Author John Kenel6 October 202010 Oct 2020

Economy

Increased costs coming for landlords – rents will continue to rise

Regulating property managers will mean increased costs for property management companies. The increased costs will be passed on to landlords in the same way that landlords now pay the letting fee i.e. 1 week’s rent to the property managers when they sign up a new tenant, a fee that tenants used to pay.

Increased costs for landlords will mean more rent increases, as landlords pass the costs on to tenants.

In the end the user pays, after all, thats the current NZ Model. The user in the cause of rental housing is the tenant.

Ultimately, more regulation will mean higher rents. Just as rents have risen substantially over the past few years as many new regulations have pushed up landlords costs. So too new regulation for property managers, more costs for landlords = higher rents.

I just hope the new regulations are worth it.

John Kenel
Assured Property

Source: landlords.co.nz

#assuredproperty #housing #rentals #propertyinvestment

Author John Kenel6 October 202010 Oct 2020
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