Weekly rents rose just 4.8 percent in the twelve months to July 2016 according to Trade Me Rent Price Index. Tenants will be relieved Landlords are being realistic and not keen on hiking rents arbitrarily. Property sales have slowed and the average asking price has dropped significantly up ten percent since July 2015.
Tenants need to know they are now on notice regarding smoke alarms. The Tenancy Tribunal fined a Hamilton tenant for tampering with smoke alarms this month setting a new case-law precedent for future cases. Landlords and property managers have taken notice of this outcome and it can be said the Residential Tenancy Amendments Act 2016 (RTAA) effective 1 July 2016 is now very much part of Tenancy Tribunal legislation ‘tool-kit’.
Demand is up for rental properties in most areas except Canterbury where the median rent has fallen over the past twelve months by two percent. Increased supply of property in Christchurch post-rebuild has meant less demand for rental accomodation and the median weekly rent is now back to where it was three years ago according to Trade Me Rent Price Index.
Meth contamination is a big threat to rental properties as it’s popularity grows. Clean up costs are in the tens of thousands and investor experiences with contamination are now on PropertyTalk.com including this discussion: Meth testing between tenancies which has nearly clocked up 20,000 views in just nine weeks.
Statistics suggest Landlords are not increasing rents unrealistically. While there was a flurry of activity at the end of 2014 and the being of 2015, the past five months have seen only small increases in weekly rents. The Trade Me Rental Price Index is a reliable guide of weekly rent price variation due to it’s monopoly status as the primary channel utilised by property managers and private landlords for marketing rental properties.
Renting is a choice for many people who just don’t want the hassles of homeownership and their lifestyle doesn’t suit it. There is a rise in single households too, so owning the kiwi dream of a typical three bed standalone in suburbia is not on their radar now nor any time in the future.
There are professions that require extensive travel and with today’s global economy people are a lot more transient, moving cities, countries at very short notice.
All eyes are now on the rental property market and the remarkable shift from homeownership by the age of thirty, to living in rented accommodation long term.
The question now being asked by many commentators is: Does the Residential Tenancies Act 1986 (the Act) support long term renters or is it only good for the ‘flatters’?
Landlords may come off badly if Auckland Council go ahead with their proposed bylaw to charge homeowners with rubbish in their front and back yards. To be clear here they’re not talking grass that hasn’t been cut for a couple of months complaints.
In the last five years the average weekly rent has gone up $70 a week from $340 – to $410. It has also climbed 6.5% from February 2014 to February this year according to Trade Me’s Rent Price Index. While you’d expect larger weekly rent rate increases in the Auckland region they were rather modest at just 5.6% with Wellington at 5% and Canterbury at 7.1%.
As landlords we want want it all. Great yield, a property that’s low on maintenance and of course last but not least happy tenants. How do you keep your tenants happy? Emergencies aside your tenants happiness with your property and their tenancy may be directly attributed to your response and timeliness in dealing with maintenance.
Rental Property weekly rents have increased less than expected during the past 12 months. The median weekly rent for a three bedroom house is $420 per week according to Trade Me statistics. During the last year Christchurch’s residential property rents increased the most at over eight percent bringing the average rent for a three bedroom home to $450 a week.
The huge property value growth has sparked a lot of talk lately about increasing rents and some journos have gone as far as to say Landlords are exploiting the housing shortage.