Landlords facing ‘tenant’s market’
Rental properties are sitting vacant because new tenants are hard to find, and landlords need to recognise it is now a ‘‘tenant’s market’’, property managers are warning.
There are more properties listed for rent nationwide than ever before, and the national median weekly rent fell for the first time this year, Trade Me’s latest figures show.
In the Auckland and Wellington regions there were huge increases in supply last month, with their rental stock up 16% and 45% respectively from the same time last year.
Auckland property manager Tina Dunsmuir, from Professionals Onehunga, said there were so many available rental listings, her firm was struggling to rent properties, and it had become a ‘‘tenant’s market’’.
While the CBD apartment market has had an oversupply since Covid hit, and international students disappeared, the supply equation had now shifted in tenants’ favour across the city, she said.
‘‘Most rentals are sitting vacant for between four and eight weeks before they are re-tenanted, and levels of inquiry have plummeted.
‘‘This is the first time we have seen rent declining to amounts below what the previous tenant was paying, just to make the home attractive for a new tenant.’’
Winter was usually a quieter period for the rental market, but the current market was the slowest she had seen in 12 years in the business, she said.
‘‘We hear landlords saying there are not enough rental properties out there, so they can raise the rent, but that’s not the case. Rather, if tenants are looking to negotiate on rents, now is the time for them to do so.’’
Property Scouts managing director Ryan Weir said its franchises had noticed an oversupply of rentals in Auckland, which had resulted in a decline in tenant inquiries and falling rental prices.
Auckland city apartments remained the worst affected, but up to 80% of booked attendees were not showing at rental viewings across the city, and that showed tenants had more options, he said.
‘‘Most rentals are sitting vacant for between four and eight weeks before they are re-tenanted, and levels of inquiry have plummeted.’’ Tina Dunsmuir
Professionals Onehunga