What is the misconception about renting and how can renters take advantage of the rental housing market? The Renter’s Blog looks at the wider picture, the pros and cons helping you to make informed decisions to rent or own at some stage in life.


Renter’s Blog

Be Informed —Why would you keep renting?


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Klauster Properties Ltd—Renter’s Blog

Renting for Life - Budget or Lifestyle decision?

Renting—Trendy lifestyle or budget decision?


International trends especially in developed countries throughout the EU and US show that the majority of people prefer to live in cities and are willing to pay for that convenience. I am not sure if modern lifestyle means we get either the lifestyle or make the money. Certain is  we are giving it more attention and focussing on career, good income, travelling and consume.


On the other hand the land is already owned by somebody, price and land scarcity are driving up housing costs and the rental housing market. The notable answer of city planners is building more compact housing and apartments in high-rise buildings. This leads to massive demographic changes such as single households and professional couples with no kids. Who doesn’t like living close to work instead of time consuming commuting every day?


Good paid jobs in exchange to home ownership


In countries with developed industries people choose good paid jobs and social security that provides sufficient old pension funds, too. That is why people are less interested in home ownership or to retire in a mortgage free  house. You see the opposite to countries with low income or rural societies.  NZ is one of these countries where people still dream to retire  in a mortgage free home.


Income consuming housing costs


In NZ the income consuming housing costs have divided communities in over-taxed  homeowners and renters. For decades the income stagnation is visible when looking at  quality and comfort of housing. The 90s added new built leaky homes to historical poor built, damp and cold homes.


Since housing politics has become the playground for politicians cities suffer from housing shortage and skyrocketing house prices. “Home affordability” is the magic term to attract voters, and that without a definition what an affordable home is. The current kiwi-build is priced around 650-700K depending on size.


To victimise renters and condemn “renting” as the second rated option is just a misleading response to global trends in developed nations and cities with plenty of lifestyle opportunities.



Current challenges for renters


Taking a neutral view about proposed changes to NZ’s renting law (Residential Tenancies Act—RTA), sad for tenants and landlords are serious contradictions and unintended side effects. One is the expected scrutiny of applicants for a tenancy (also called tenant screening process) to protect both parties. This might turn out as advantage  for people with a very good renting history, but what will happen to people who don’t fit tougher selection criterions? In these days people are busy, working long hours etc, saying an application for a tenancy can become a nightmare. Saying so—I hope not.


This blog might help you to make informed decisions, when looking to improve your individual situation. You don’t necessarily need to agree with illustrated views. But re-thinking your own position and awareness might bring you ahead of the competition when applying for a tenancy.



The old stigma associated with renting


Renting is wasted money and the second option of choice, right? - Wrong! The rent in NZ  is the equivalent of housing costs for

· Renters’ local taxes, levies and services paid to the council

· Reimbursement for wear and tear of your home (repairs and maintenance)

· Refunding services to finance a rental including insurance, interest payments

· Payments for services provided by the landlord, property manager, body corporate, etc

These housing costs that the landlord pays by law on tenant’s behalf are identical with home owner-occupier’s expense.


Reasons that rents have a profit margin:

· Cost management due to rental property’s nature

· Effective finance & investment structure

· Minimization of finance costs (interest payments) by increasing equity

· Income producing expenses are tax deductible


True is that home owner-occupiers spend more on housing compared with renters because of more expensive buildings (land or location), furnishing and appliances and house-proud gardens, expensive renovations and similar lifestyle decisions.




Hopefully this blog will chip away the obsolete renting stigma. As below, our blog posts illustrate areas we came across as renter. Good luck.


Have a good look at the tenant screening process

Know about tenancy application supporting documents

Due diligence and landlord reference check



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Klauster Blogs lead to a real person, an experienced renter for more than 25 years in Europe, South Africa, Australia and New Zealand before founding Klauster Properties Ltd in 2006.


The passion of making experiences available and helping people to avoid pitfalls has been rewarding by forming lasting relationships.


Our philosophy to treat life, partnerships and hobbies as an investment has helped people in our circle. Life is a dream with a deadline, happiness comes from making the right choices by having realistic expectations.


Don’t blame, boost your confidence!