Landlords with rental property in Auckland have shown their restraint over the past couple years according to Trade Me’s Rent Price Index. This is big news but don’t expect it to be broadcasted in mainstream media any time soon.
Bad news not only travels fast, it also gets more reads, clicks and comments so why pay a Journalist to write a feel good story for our Landlords? Therefore you’re probably hearing this news from us first! Most landlords are not greedy and they’re not hiking up rents.
According to the Rent Price Index the year to June 2016 saw the median rent increase in Auckland at just 3 percent. The previous year July 2014 – June 2015 it was up 8 percent. Fast forward to June 2017 and the median rent increase in Auckland was just 3.6 percent. Arguably this data supports evidence of the good property management firms like Pedersens Property Management are doing with their landlord clients.
In PropertyTalk’s forums, landlords regularly discuss rents and what level of increase is deemed acceptable. Also discussed by it’s users, is the regularity of weekly rent rate increases, with the general consensus being one increase applied annually. Also assess to current rental data, like the market rent feature on Tenancy Services empowers both landlords and property managers to make informed choices not only with the rent but with their other responsibilities like bond, receipts and records, utilities and other payments.
Landlords have until July 2019 to get their rental properties insulated to the standard required for compliance and this additional expense will put pressure on cash flow. While the past two years have seen remarkably low median rent percentage increases, it’s not likely to continue as thousands of dollars are spent on insulation in tens of thousands of rental properties around the country.