Mark Richardson announces rent increase for tenants on The Project

The AM Show 17/05/2018

Mark Richardson's tenants had quite the surprise last night when they found out he may be increasing their rent, which was broadcast live on The Project on Thursday.

The AM Show host said his tenants could thank the 2018 Budget when their rent goes up.

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

Richardson told The AM Show he received a text after The Project asking him if he was serious

Sorry fellas.

"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, remarking that the host "likes his tenants too much".

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

Watch the full commentary above. 

The AM Show with Duncan Garner, Amanda Gillies and Mark Richardson, weekdays 6-9am on RadioLIVE and streaming live to the rova app on Android and iPhone..