Tenants compete for quality properties
Landlords can expect especially good returns from top quality investment properties at present, says New Zealand Property Investors Federation president Andrew King.
Friday, October 26th 2012, 12:00AM
by The Landlord
The Dominion Post reported yesterday that Wellington tenants were opting for higher quality, more expensive rentals, which meant landlords with properties at the bottom end of the market had to reduce their rents in order to let them.
There had been a 10% drop in rents across cheaper suburbs such as Eastbourne, Pinehaven, Waiwhetu South, Totara Park and Gracefield.
But in more expensive areas, tenants were competing for properties.
Quinovic Hutt Valley principal Tom Finlay the standard that tenants expected in a house had risen in recent years. Tolerance of chilly homes and damp conditions deteriorated significantly after the Warm Up New Zealand scheme started a push for more insulation in homes.
King said a property in good condition would always rent more quickly than one that is not in such good condition, even if it is a bit more expensive.
“At the moment there’s a rental shortage so it’s especially true that tenants don’t mind paying more to secure a good property.”
He said he did not think insulation was a deciding factor for tenants. “In winter we get people moving from a cold house who ask about it but I think most tenants would be more interested in location, size and condition than insulation.”
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