Council under fire as tenants resist new agreements
Residents at one of Rotorua’s pensioner housing blocks say they will not sign new tenancy agreements until they receive firm assurances about rent increases.
It follows Rotorua Lakes Council’s new partnership with Ka Puta Ka Ora Emerge Aotearoa, which will manage 152 council-owned pensioner housing units across Ngongotahā, Fenton Park, Glenholme and Westbrook. While the council will remain the landlord, Emerge will take on property management responsibilities, 1News reported.
Last year, councillors unanimously voted to bring in community housing providers to reduce pressure on ratepayers and improve the quality of housing. Many of the units have been described as “rundown.”
Rent hikes spark anger
Under the new partnership, residents will be required to sign fresh tenancy agreements with Emerge, which will lift rents to market rates from February. The council has said it will ensure superannuation-dependent tenants are “no worse off financially” for two years, likely by contributing to utility bills.
But for residents like Neil Evans, the estimated increase is overwhelming.
Evans said his weekly rent at Lucas Place would rise from around $122 to between $320 and $420.
Despite assurances, he said he struggled to see how the difference would be covered.
“We’ve all worked, most over 50 years, and now we’re struggling,” Evans told the publication. “I was left on the brink of collapse.”
Evans estimated he would have just $200 a fortnight left from his superannuation after rent and believed the hikes could force some back into homelessness.
He said most tenants agreed they “would not be signing anything” until it was “guaranteed” they would not be worse off.
Concerns over consultation
Residents also expressed frustration at the consultation process. Evans described a September drop-in session where tenants were told the changes would take effect from Oct. 1.
“It was all very sudden indeed. It felt like enforcement, not consultation,” he said.
Evans said the process used “divide and conquer” tactics and left him in tears.
“They did not treat us with the respect we deserved,” he said.
Another tenant added: “They don’t seem to understand. They made me feel like I didn’t matter.”
Council defends changes
Rotorua Lakes Council said the partnership was necessary to make the pensioner housing portfolio financially viable.
“Continuing to rely on $1 million of ratepayer funding subsidy, which is expected to increase, each year to cover actual costs is not sustainable or fair to the general ratepayer,” said Stavros Michael, council infrastructure and assets general manager.
“By making the portfolio financially viable, we can maintain quality homes and look to increase the supply of pensioner housing in the future.”
Michael confirmed the council’s contribution towards utilities will vary by tenant and that independent valuation of market rents is still underway.
Emerge Aotearoa will receive 8.5% of rent for property management services including sign-ups, inspections, and maintenance. The Oct. 1 changeover has been delayed until final assessments of the units are complete.
For mortgage advisers, the dispute highlights how affordability pressures affect not only first-home buyers but also retirees on fixed incomes. Rising pensioner rents are part of the same affordability story shaping the wider market, where younger buyers are stepping in as investor activity recedes. Advisers need to track these shifts closely, as they reflect long-term structural changes in housing demand.
Grey Power calls for balance
Grey Power Aotearoa said it recognised the changes may cause “distress” and “anxiety” for residents, but hoped improvements would follow.
“We expect Emerge Aotearoa will offer units that are warm, dry and affordable,” secretary Christine Bavister said.
“Likewise, this housing will be available to pensioners at a reasonable and affordable rental rate to enable seniors to live in dignity enjoying a comfortable and sustainable quality of life.”
When approached for comment, Emerge said Rotorua Lakes Council was “best placed” to answer questions.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
