Property Owners and Renters Deserve Better

Property Owners and Renters Deserve Better

Wellington, Monday 4 September - Property owners and renters will both lose out if proposed changes to rental laws go ahead.

Grant Foggo, Director of Comprende, a Wellington property management firm, says Labour’s rental policy makes blanket assumptions about property owners and also tinkers with rules and laws already in place.

“90 per cent of our leases are already fixed-term 12 months agreements which is the favoured lease type in Wellington and tenants are protected for the term of the lease. It’s unnecessary to put a 12-month cap on rent increases, as under current rules rents can’t be increased in the first 180 days (or six months of tenancy beginning) or within 180 days (or six months) of any previous increase,” says Grant Foggo.

“Requiring a formula for setting rent to be included in property agreements will harm the market. Each home’s rent depends on many variable factors, and property owners need to be able to set rent at an amount that allows them to meet their costs and provide a warm, dry and maintained home for residents.

We work to be as transparent as possible with both landlords and tenants when determining rental prices.

“It’s our experience that most landlords are saving for retirement. They don’t own multiple properties, they’re simply working to provide for their families. It’s in no one’s interest to have a negative renting experience. At Comprende we strive to create happy homes for our renters and a positive relationship between them and the property owner.

“For example, we work with the Sustainability Trust and give our residents insulation reports about their homes, and we are actively educating our owners about what they need to do to ensure they meet the new insulation standards that will be enacted in 2019,” says Grant Foggo.

The proposal to get rid of letting fees will push all of the logistical costs of a tenancy onto landlords and will likely result in increased rents for tenants.

“The market is already playing catch-up on problems that have been around for decades, without having to absorb any new legislation. If these changes go ahead it’s unfortunate, but inevitable, that some owners will exit the rental market reducing the number of homes available for rent; and rents will rise.

We want to build a sustainable rental market that looks after property owners and provides homes to residents, creating a win-win situation for everyone,” says Grant Foggo.

About Comprende

Established in 2014, Comprende acquired Just Property Management in 2016 and looks after properties across the Wellington region, including a large number of apartments. People and property are at the heart of what they do, and they work to create happy relationships between property owners and their residents, redefining the property rental market.

ENDS

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