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Mark Richardson announces tenants' rent increase on live TV

Newshub logoNewshub 16/05/2018 Newshub staff
a man standing in front of a stage © Image - The Project; Video - The Project / The AM Show

Mark Richardson's tenants had quite the surprise last night when they found out he may be increasing their rent on live television.

On The Project on Tuesday evening, Richardson said they could thank the 2018 Budget when their prices go up.

"I know that my tenants are really worried about this Budget because the rent's about to go up. Sorry fellas."

On Thursday morning Richardson told The AM Show he received a text after the show asking him if he was serious.

"But I am serious about this. I'm not going to suffer because of this Budget. There is going to be some creative accounting on the revenue gathering side of it so that we, at home, can't do our own creative accounting to save ourselves money."

Richardson says he's "just going to have to hand that cost over".

"I'm running a business here, you know. I'm going to be left out of pocket by this Budget."

Richardson says he expects the Budget, set to be announced on Thursday at 2pm, will "get money out of those of us who are doing alright" - noting negative gearing in particular.

Earlier this month the Government announced the practice of negative gearing on investment properties will end in 2019.

Investors can currently offset losses so that they pay tax against a smaller income, but the Government says negative gearing is simply a subsidy for property speculators, and from next year it will be gone.

"It's distortionary in the property market.  We want to make sure first home buyers have a fair go," Finance Minister Grant Roberson told Newshub.

It's distortionary because investors can offset losses against their income to reduce their tax.

The AM Show host Duncan Garner was doubtful Richardson will actually increase rent, however, saying he "likes his tenants too much".

"I thought you were better than that... I thought you could have at least told them beforehand."

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