‘Much’: Retirees Surprised by $ 25-a-Week Rent Increase

By Charlotte Jones, Local Democracy Reporter

Retirees living in pisospōtiki’s Peria House flats say a rent increase of $ 25 per week will be a struggle to pay and will have to do without it.

However, the company that owns the apartments says that although the rent increase is regrettable, it is inevitable after years of underinvestment by the previous owners.

The 20 pension apartments of Peria House originally belonged to the Ōpōtiki District Council and have since been administered by various charitable funds. They were designed to be an affordable option for those on a fixed income, but now they also house people in paid jobs.

The apartments are now managed by the Peria Society Incorporated, formerly Opotiki Old Peoples Home Society, which also owns the retirement village of Peria Village.

Most of those who lived in the flats said it would be difficult to pay the rent. Neither wanted to be identified because they were concerned that they would be forced to leave and had nowhere to go.

One retiree said he had lived in his car for six months before a flat was available at Peria House. If he lost the flat, he would go back to his car. He said the rent increase was a “tremendous shock.”

“[It’s] $ 100 a month, well my pension hasn’t gone up to match that, “he said.

“They told me to go see Winz, but I doubt they’ll give me the full $ 25; I’ll be lucky if they give me an extra $ 5. Life is a struggle anyway.”

Other retirees said the rent increase was “huge,” that they didn’t see it coming and were “furious.”

However, they all said they had no choice but to pay as they suspected other places would charge a lot more.

A man who lived in the complex said that although it would be “all good for now” since he had a job, when he fully retired, the promotion would make things difficult.

He said that when that happened, he expected to have to move in with the family, which was already packed.

“What else can you do? There is an expectation that you can find more money,” he said.

All the interlocutors were satisfied with the condition and maintenance of the apartments.

The president of the Peria Society, Gloria Lewis, said that not much maintenance had been done on the floors since 2016 and that the society had to do a lot of work to bring them back to standard.

He said he aimed to keep rents modest, but sustainable. The highest rent is $ 160 per week.
Lewis said the partnership did not make a profit from the home and that the board had been funding it in part for some time, but could no longer do so.

“Frankly, they weren’t up to the job,” he said. “The reality is that since we took over, we have spent a lot of money on maintenance and are trying to keep very good quality, modest flooring available.”

Work on the floors has included new vinyl, new paint, new carpet, security lighting, and raised gardens. The society relocated the tenants to alternative housing while their apartments were being renovated.

Lewis said rates also rose 14 percent in the last fiscal year, insurance increased 39 percent and several of the apartments also had to be completely refurbished after tenants destroyed them. The society is also considering building a fence around the apartments to improve security.

“In some years, we have spent more on maintenance than we receive in rent, without even taking into account fees and insurance,” he said.

“In the past, rents did not increase in line with expenses. We are trying to keep rents as reasonable as possible.”

The rent increase goes into effect next month.