It’s crucial for landlords to stay informed and proactive.
As winter approaches, the chill in the air is a reminder of the importance of keeping our properties in optimal condition. With Wellington’s rental market undergoing significant shifts, it’s crucial for landlords to stay informed and proactive.
We’ve observed a 16% decrease in rental searches within Wellington, coupled with over 1,100 active rentals advertised on TradeMe. This translates to an over 17% increase in stock volume, the highest number we’ve seen in years, indicating a saturated market with limited demand.
(Source: TradeMe)
Current Trends and Adjustments
Landlords must adapt to these changing conditions. Properties will not rent for the same prices as they have in previous years. Tenants are acutely aware of the current market landscape. Attempts to increase rents are often met with letters of intent to vacate, potentially leaving properties empty for extended periods. If you have good tenants in your home, do what you can to ensure they choose to stay. You cannot afford vacancy right now.
Recent Price Adjustments
Here are some examples of recent price adjustments that have led to properties renting quickly:
A 4-bedroom home in Mount Victoria, reduced from $1,250 to $999, rented within one week of the price drop.
A brand new 1-bedroom CBD apartment, lease break, rented for $590, reduced to $525 to get rented.
A 3-bedroom, inner-city apartment previously rented for $1,000, rented for $600 this year.
A 3-bedroom townhouse in Thorndon, previously rented for $1,200 per week, now advertised for $950 and rented within one week.
These adjustments highlight the necessity of pricing competitively in the current market. Offering incentives such as a week’s free rent or allowing pets can also make your property more attractive to potential tenants.
Strategic Recommendations
Assess and Adjust Rent: Evaluate your rental prices to ensure they are competitive. Aim to meet the market rather than exceed it to avoid prolonged vacancies.
Adjust the Advert: People get used to seeing the same properties listed, so change the photos and the description regularly, and ensure your viewing times are listed.
Enhance Property Features: Features like off-street parking, energy-efficient heating solutions, double glazing, and comprehensive fencing for pet and child safety are in high demand. Investing in these can significantly boost your
property’s appeal.
Lease Renewals: Now is an opportune time to discuss lease renewals with existing tenants. Ensuring tenant satisfaction can prevent vacancies and associated costs.
If you have not had any interest within a few days of the property going online, we will be in touch to adjust the advertised rental rate and potentially update the advert. Advertising is now very critical to ensuring you get as many pairs of eyes looking at your home and Tommy’s prides itself on the quality of our marketing. When you advertise with Tommy’s, your property receives the full marketing approach, including professional photos, 3D walkthroughs, videos, floorplans, and a FOR RENT sign.
Ongoing Support
At Tommy’s Rentals, we are committed to navigating these market changes alongside you. Our team is always here to provide tailored advice and support to help you make the most informed decisions about your investment properties.