Trust House chief executive Charles Kaka. PHOTO/FILE
Rent is increasing for tenants in 239 Trust House properties, effective from March 22.
It is the first increase in more than two years.
A one-bedroom flat goes up by $10 a week, two-bedroom by $20 a week and three, four and five-bedroom dwellings rise by $25 a week.
The range of weekly rents charged in Masterton is $188 a week for a one-bedroom dwelling and $307 for a four- to five-bedroom house.
Four-bedroom properties listed for rent on Trade Me are from $450 to $500 a week in Masterton and Carterton and more than $500 a week in South Wairarapa.
According to the Ministry of Business, Innovation and Employment website, Trust House rents are, on average, cheaper than the lower quartile rents for each area that they operate, [Dannevirke, Masterton, and Featherston].
Trust House halted planned rent increases last year in response to the economic and social impact of the covid-19 lockdown.
Announcing the rent increase on Monday, the trust said it decided to hold off rent increases before the government mandated it.
Trust House chief executive Charlie Kaka said the increases were necessary to help cover growing costs.
“There are across-the-board hikes in costs with council rates continuing to rise, as are insurance costs and contractor rates,” Kaka said.
“We continue to invest in our existing properties, many of which are old and require a lot of maintenance. We are also working hard to further grow our housing stock with planned new builds for later this year.”
Trust House is the biggest ratepayer in Masterton.
Kaka said the rent increases did not apply to 210 Income Related Rent tenants.
A qualifying tenant generally pays 25 per cent of their income as rent.
Since 2019, all Trust House tenants can apply for the government rent subsidy.