Making sense of apartment rent

Question from Sean updated on 15th February 2013:

I am currently renting a one-bedroom apartment in the Auckland CBD. It is fully furnished and being managed through a property management company. I moved in to the apartment at $550 per week rent. In my welcome pack, I found a letter to the owner from the property management company (I think it was put in here by mistake) dated a few days before I moved in, stating that the estimated property rent is $400 to $430 per week. So I am being charged $120 a week more than estimated. I have now received a letter stating that they are putting the rent up by another $20 a week saying they have completed a study of rents in the Auckland CBD and the apartment is currently being rented out below its market value. I am trying to make sense of this?

Our expert Ollie Mitch responded:

I will assume that when looking for an apartment to rent you looked at different apartments within your price range and finally concluded that this apartment was the best option available.  I would ignore the rental appraisal you have mistakenly been given a copy of and be satisfied with your original decision to take your current apartment.  If you disagree with the current market rent being $570pw then your best option would be the Tenancy Tribunal.

Ollie Mitch is head of sales at Iconicity, leading apartment investment specialists and the largest private buyer and seller of apartments in Auckland City. Phone 09 300 5073, email or visit

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