Considering the ease of renting vacant properties in Auckland over the last few years, it may come as a shock to landlords to hear that the rental market has slowed down. Property management companies around Auckland are finding it more difficult to tenant properties in this current market and we’re all seeing longer vacancy periods. This can be explained by several contributing factors.
With interest rates increasing and inflation at its highest level in over 30 years, the property boom has come to an end. There are many more rental properties entering the market now, as owners who would typically sell have instead opted to rent their properties out, and weather the storm of the downturn.
Due to COVID restrictions over the last few years, there has also been an accumulation of young people with plans to head overseas for OE’s, as well as to seek the better opportunities out there. Meanwhile immigration remains slow for people coming into NZ for similar reasons. As all these people leave their rentals to go overseas, they are not being replaced, and landlords are now competing for a smaller group of tenants.
Landlords need to ensure that their properties stand out if they want to be competitive in this slower rental market. The properties need to be well maintained, presented as quality, and marketed professionally. Healthy homes compliance also plays a big part in this as tenants look to take advantage of their options.
If you are looking to rent out your property to tenants, it is advised now more than ever to be using a professional property management company who can assist you in getting ahead.
Hayden Walls
