Landlords should consider competitive pricing.
Tenant incentives and early lease renewals to combat the oversupply of quality rental properties in Wellington, Tommy’s Rentals Managing Director Harrison Vaughan says.
Rents have been rising across NZ but have stayed the same or even dipped in the capital, which has become a “tenants’ market”.
“There are currently around 1000 properties for rent in Wellington,” he says.
“This is unheard of for this time of year. These numbers are typical of the busier summer months.”
He attributes this to government job cuts (with probably more to come), minimal international student activity and Victoria University opening up its halls of residence to students beyond their first year. “This has alleviated pressure on your typical student stock.”
He believes owners need to start thinking like a salesperson (a good property manager will be on top of this already).
“Pricing needs to be competitive at this time of year. Now is not the time to try and achieve top dollar as you may end up sitting with a vacant home for months.
“Price it competitively in comparison with nearby homes.” “Landlords may need to start offering incentives to get people through the door.
“Recently at Tommy’s we have worked with a number of owners to offer the first weeks rent-free on tenancies signed. “This gives your property a bit of an edge over the competition.”
“It is also a good time to consider allowing pets, many people have pets these days and with the introduction of pet bonds around the corner, the risk is as low as its ever been!
“And if you have tenants in your investment property now, it would be a good time to talk to them about renewing their lease.
“Our advice to landlords is to work with their current tenants to avoid vacancy and unnecessary costs.”
Harrison expects current rental market conditions to continue until at least the typically busier summer months.
“Winter is notoriously quiet for renting in Wellington and we don’t see that changing in 2024. “There is a big gap in the market between what homes are offering, and what tenants are wanting.
“Many homes on the market are small inner-city apartments with no car parking.
“Tenants are primarily looking for more suburban-style homes with parking and a bit of an outdoor area. “These are low in stock across the board.”