Flat's upgrade raises rent beyond means

Beneficiary Paul Nolly has to be out of his flat in central Dunedin by November. PHOTO: PETER...
Beneficiary Paul Nolly has to be out of his flat in central Dunedin by November. PHOTO: PETER MCINTOSH
Pressure on landlords to provide warm and dry accommodation is raising rents and putting some people on the street. Shawn McAvinue reports.

When invalid beneficiary Paul Nolly asked his landlord to fix up his flat, he did not expect what happened next.

After months of waiting, the landlord has agreed to the request. But once the work has been done, the rent will double.

Mr Nolly said he would soon be out of a home he could no longer afford.

The 56-year-old has been given 90 days to find a new place before the renovation begins.

Mr Nolly said the central Dunedin flat he moved into in January was cold and had been making him sicker.

He said he signed a 12-month lease, because his property agent told him the landlord would improve the flat.

When renovation work did not take place, he complained about substandard housing to Dunedin City Council, prompting an inspection on August 11 by senior environmental health officer Wayne Boss.

Although Mr Boss found the flat was sanitary and fit for human habitation, he reported it was in a state of disrepair with poor insulation, draughts and heating issues.

And that was a matter for the tenant, agents and property owners to resolve under the Residential Tenancy Act.

Now the landlord has now decided to renovate, the $150 weekly rent will go up to $300.

Mr Nolly said he would have to go because, on his benefit, at most he could afford $200 rent.

The flat is managed by Harcourts Dunedin and its chief executive, Hayden Duncan, said landlords were not social housing providers.

If money was spent improving a property, then tenants should expect a rent increase, he said.

''It's just basic economics.''

Mr Nolly's story highlights a dilemma concerning Dunedin's cold housing stock.

On one hand is the need to fix the city's many poorly heated homes. On the other is the question of who pays for it.

John Le Brun is a property investor and board member of the Shelter Trust, which runs the Dunedin Night Shelter, helping to provide a roof over the heads of people in need.

Upgrading ageing and cold housing was ''great'', he said.

But Mr Le Brun expected it would make some landlords raise their rents.

''Inevitably, when that happens, there is going to be a few more knocks at the night shelter door ...

''Unfortunately, there are people in Dunedin who live right on the line and any rent increase can have an immediate and detrimental impact.''

Mr Nolly said that finding warm, affordable rentals in Dunedin was difficult for beneficiaries.

He was on a waiting list for a council unit and hoped one would be available by November.

The DCC said 107 people were on the waiting list for one of the council's 941 units.

If a unit was not available, then Mr Nolly said for the first time he would stay at the night shelter ''if worst comes to worst''.

Shelter Trust chairman Dave Brown says if someone needed a bed, the shelter usually allowed a five-night stay.

The duration could be extended if other accommodation - such as a council unit - was becoming available.

''We want to discourage people staying forever,'' Mr Brown said.

Mr Nolly said if he had not found any accommodation after his shelter stay, he would live on the street, rather than move to a boarding house.

He had previously lived in a boarding house, Alva House on upper High St, and did not enjoy his stay because many tenants struggled with addiction issues.

The fact that rent for Mr Nolly's flat would double was startling to Anglican Family Care director Nicola Taylor.

She said she had heard of landlords increasing rents after renovations, but never doubling them.

''That's just awful.''

In July, Housing Minister Nick Smith announced moves to strengthen residential tenancy laws.

Under a tougher Residential Tenancies Act, every rental property would have to be insulated and have smoke alarms, within four years.

Methodist Mission chief executive Laura Black said the move was billed as an efficient way to improve housing standards without passing on costs to tenants.

But she expected some landlords would try to profit from the mandatory standards by raising rents.

''The people renting from them are likely to suffer.''

Otago Property Investors Association president Wendy Bowman said after insulating and installing smoke alarms, landlords could legally increase rents but would be in danger of losing their tenant. The market would dictate the rents, she said.

''It's a supply and demand-driven industry.''

Some landlords were ''socially conscious'' and charged rent under the market value because they wanted to give something back to the community.

''There are a quite a few landlords out there like that but I guess it's just about finding them.''

The DCC's Rebecca Williams said housing was the council's number one social issue, as it affected the economic vitality of the city.

In a national trial, the council took part in a housing warrant of fitness study in June, Ms Williams, the council events and community development manager, said.

The findings of the small survey of Dunedin landlords suggested most were sympathetic to their tenants.

More than 20 city landlords were asked: ''Will you put up the cost of rent to cover any costs associated with fixing your rental property?'' Of those, 20 landlords said they would not increase the rent.

Two said they would increase rent to cover installation of heating or insulation. Another would consider raising rent.

Meanwhile, as Mr Nolly continued his search for somewhere else to live, he was locked in a battle with his property agent over what he called the consequences of living in a cold flat.

He had lodged a complaint with the Tenancy Tribunal, seeking compensation from Harcourts to cover some of his medical and power bills.

Mediation between the parties had been booked for Tuesday. Mr Nolly was not confident. He said he doubted he would see even a cent.

''It's an uphill battle.''

shawn.mcavinue@odt.co.nz

 

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