Wednesday, December 22, 2010

Don't Subsidize Someone Elses Lifestyle.

I couldn't have put this better myself!

I believe that many businesses are going to be recruiting and competition in certain roles and sectors is going to be evident resulting in wage inflation. With living costs going up and inflation increasing (particularly with insurance premiums rising, rates increasing and commodity prices increasing) wage inflation is a must. Our tenants have more money to pay the rent, and the NZPIF survey earlier this year showed that tenants expect their rents to go up. So lets not disappoint them, and remember to continually monitor and increase your rents. Yes you may have a good tenant, but I can assure you that there are many tens if not hundreds of thousands of good tenants in the large city of Auckland. You owe it to yourself not to subsidize your tenant's lifestyle - charge market rent and remember small increases often. If you are too scared or shy about putting your rents up, or don't know what market rent is, you really should consider having a property manager as chances are they will be paying for themselves anyway!

David Whitburn, President, Auckland Property Investors' Association.

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