Greedy Body Corp Landlords demand 15% more profit...

By Matt Souden

I sit here this morning reading different articles as I like to do. And I come across an outrageous story that makes me shake with fury!!! Right now, right here in New Zealand, Tenants are taking their Body Corp Landlords to the Tenancy Tribunal over the basic, life preserving liquid that we all know as water....thats right!!

These greedy owners that run this a Body Corp called Oxygen, have decided that it is ok to start putting water meters into their Wellington apartments they lease out to tenants, in order to charge tenants for every drop of water they use. Now its easy to say that if the tenants dont like it, they can move out, but its not so clear cut because some of these tenants are held legally to stay, by fixed lease contracts.

So they cannot leave, and against their will, they now have to find more money to pay for water. The Body Corporate says that they will leave the water on, for simple things like flushing the toilet, but every drop of water used, will have to be paid for, by the tenant.

Further to this strong arm tactic where the tenants have no choice but to pay, having no legal ability to leave,they are deeply concerned, as the estimated water fees will be any where from $50-$150 a month and there will also be a 15% margin added to this. To add to the outrage, tenants are being told that they will have to pay a further $200 bond for these meters and a connection fee on top of all of this.

One tenant reported that she already pays $385 per week to live in her apartment with her partner.

The water meter providers, Easy Energy, have reported that they charge a base amount to Landlords and it is the up to the Landlord to decide how much more they will charge the tenant, although currently we are unable to learn what the fees for Easy Energy actually are.

Quote:

"The Body Corp in question, Oxygen, replied via their chief executive, Vesna Wells, who was quoted as saying "people were clearly upset but tenants had been given adequate notice of the change."

We are unclear if the tenants of the apartments, were warned of these incoming costs before they signed these fixed term lease agreements. Further this seems totally corrupt, in my opinion, because I can understand the Body Corp wanting to cover their installation costs, but that does not mean, and there has been no indication, that once those costs are recouped, Oxygen will then lower rent to a more reasonable standard to make up for these higher costs. The water meters will be there, long after many current tenants have gone, but because they happen to be dwelling there right now, it seems that it is their money that will pay for the installation costs etc accrued getting these meters installed.

The tenants are taking Oxygen to the Tenancy Tribunal, in an attempted class action, and I would think that there is definitely merit to do so. To move into an apartment, at a set cost, only to have something installed, that instantly raises your costs surely can not be allowed, and you may think that this doesn't affect you, but this affects everybody in New Zealand one way or another.

It may not be you that it affects, but it could affect a family member or friend if other Body corps follow suit with these bully tactics. It may affect your kids if they one day move into a property owned by a body corp. And is this the kind of New Zealand we want anyway? Where Body Corps can just bring in new costs as and where they see fit.

They use the excuse that some tenants were using too much water, and my mind really boggles at this as an excuse, I mean how much water can one person use? Lets do the basic maths here, if 330 apartments are affected, lets assume that the lowest cost is the one charged being the $50 a month, which I think is not realistic as its probably to low, but at $50 a month, spread out over 330 separate apartments, and remember this does not include any of the other costs, the Body corporate stands to gain $16,500.00 extra a month.

Thats big money, and thats without the 15% added margin or any of the other fees, bonds etc. Thats $198,000.00 per year, before they have to pay whatever it is that they pay out their own costs and taxes etc, but I would guess they still have money left in their pocket at the end of the day, which is a luxury the tenants footing these bills may not have.

Now Mr John Keys our prime minister, has kindly dropped the business income tax down by 3 cents in every dollar for the coming year, which means that for every dollar the Body Corp earns, they are charged at the new amount of 28 cents from every dollar. I wonder if the Body Corp passed these savings onto the Tenants, or considered using this extra amount to offset these new water meters? Again I doubt they did. I also wonder if the owners of the Body Corps were put in the same boat, how they would feel?

They would no doubt find it disgusting, and fight tooth and nail to have it overturned. And yet they are happy to treat others this way. Is this what our society has come to, where its ok, to treat others how you would not like to be treated, on the presumption that because its business, its ok?

After seeking legal advice, Wellington City Council said it was "comfortable" with the new water metering arrangement."

I'm absolutely outraged and disgusted that this should arise. Surely we live in a society where we should not have to fight for basic rights that every New Zealander holds as birthright, that those issues that one knows to be unfair can be trodden on and even be legal?

Lets hope the Tenancy Tribunal see's sense and tells the Body Corp to act in a more moral and socially responsible manner. Lets hope the New Zealand I think we have, holds strong against this tyranny!!!

Matt Souden

Director

Tenancy Support Services Ltd.

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