Property glut forcing rents down
Sunday 11 July 2004
An abundance of rental properties on the market is forcing some landlords to drop rents or leave their investment sitting empty.
By The LandlordNelson Property Investors Association secretary Glenn Morris said the primary reason demand for rentals had been "squashed" was a drop in the numbers of Asian immigrants coming here because of new minimum English language requirements.
Landlords were faced with the choice of "either drop your price or let it sit empty", and were being forced to take on undesirable tenants.
"The less desirable people, and I say that from the point of view of maybe having dogs, bad credit ratings, maybe rough looking - people who always have trouble finding a house - they're not having as much trouble at the moment."
Some property owners were now trying to offload their investment, he said, and he knew of one woman who would have lost about $40,000 on her Princes Drive rental property when she sold it.
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