Wellington Rental Market Update | May 2023

How can landlords attract good tenants in a slowing market with an oversupply of rental properties?

“Despite the current market conditions, there are still opportunities for landlords to stand out in a crowded market and attract quality tenants,” Harrison Vaughan, Director of Tommy’s Property Management, says.

These include offering competitive rental rates, flexible lease terms and well-maintained properties.

“In addition, landlords can take advantage of the quieter winter season to make any necessary repairs or upgrades to their properties,” Harrison says.

“This can help improve the overall value of the property and make it more appealing to potential tenants in the future.”

He says winter typically sees a decrease in demand for Wellington rentals.  “As the weather turns colder and wetter, many tenants prefer to stay put rather than go through the hassle of moving to a new property.”

Despite the challenges facing landlords, Harrison says now is a good time to invest in rental property, especially new builds.

“New builds can be particularly attractive to investors because they offer a range of benefits, including the ability to deduct interest payments from their taxes.

“This can help reduce the overall cost of the investment and increase its profitability.

“Additionally, new builds tend to have lower maintenance costs and higher energy efficiency, which can further increase the return on investment over time.

“Overall, now is a good time to invest in rental property, and new builds can be an excellent choice for those looking to maximise their return on investment.

“With the right strategy and a solid understanding of the market, investing in real estate can be a smart way to build wealth over time.”


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