Seven-year leases for renters
A new development in West Auckland is promising long-term tenure to renters with a get-out early clause if needed.
Around a quarter of the 208 new homes to be constructed as part of the new Kerepeti homes development at Hobsonville Point will available for lease for up to seven years.
Kerepeti is a joint project between New Ground Capital, New Zealand Super Fund and Nga¯ i Tahu Property.
New Ground Capital managing director Roy Thompson said he said as far as he was aware, the company was the first to offer long-term leases on a large scale.
It also gave tenants the option to end their leases early if necessary.
Under the Residential Tenancies Act, neither landlord or tenant can give notice to end to a fixed-term tenancy early.
‘‘We’ve found a way to work within the Act, but at the same time to give people security of tenure,’’ Thompson said.
Forty-seven homes will be available for rental. A portion will be also be affordable homes.
The Kerepeti development covers two sites in Hobsonville Point and includes apartments, terraced housing and standalone homes.
Massey University associate professor in property Graham Squires said having a long-term lease could offer security to both tenants as well as landlords.
However, in terms of solving the housing crisis, increasing the length of tenure was only part of the solution, he said.
Squires said quality of space, social investment in communities, and ensuring a across-tenure approach - neighbourhoods with a mix of private and social rentals and owner-occupied homes - were also important considerations.
Renting was still seen by kiwis as a temporary stage before purchasing their own property, he said.
Thompson said while they expected a broad demographic of residents in the rental properties, a stable base was particularly attractive to families who needed to be in a certain zone for schooling.
The first homes are now being built and will be ready in 2018.
New Ground Living is a subsidiary of New Ground Capital and will be managing the rental properties at the Kerepeti development. Nga¯i Tahu Property is overseeing the Kerepeti development.