Half Of All New Zealanders Over 15 In Rentals

rentsAll 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’? Experts are recommending changes to the Act  to support the “rent generation”.

The “rent generation” was coined by NZIER Economist Shamubeel Eaqub to broadly describe all types of tenants in residential rental accommodation. The rent generation therefore includes people just starting out as young adults, tertiary students, families and people electing to rent over homeownership.  Short term renters are flatters and tenants more vulnerable to landlords – e.g. beneficiaries.

Consumer NZ CEO Sue Chetwin, in a recent 3News article said the Act was written with short term renters in mind.    The rent generation may be looking for greater security with longer fixed term tenancies.  Currently a fixed term tenancy is for just one year.

With more people renting than ever before property management is big business and there are calls to regulate it, in much the same way the REAA regulates the Real Estate Agencies.  Regulation would not hinder the growth of Pedersen Property Management  which is one property management firm that would fit into Sue Chetwin’s “some responsible property management companies” category,  aforementioned in the 3News article.

Pedersens Property Management  are members of REINZ (Real Estate Institution of NZ) and LPMNZ (Leading Property Managers of NZ) abiding by their respective code of conducts.  For now this is the best on offer to property management firms however new legislation could be in parliament by the end of the year.

This blog article was written for PropertyBlogs by Mobilize Mail.

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