Ageing land­lords sell rental prop­er­ties

Hawke's Bay Today - - Local News - An­drew Ash­ton

Hawke’s Bay’s rental mar­ket ap­pears to be in a state of flux, with older land­lords bail­ing out but prop­erty man­age­ment com­pa­nies still as busy as ever.

Data from the Min­istry of Busi­ness, In­no­va­tion and Em­ploy­ment shows the num­ber of rental prop­er­ties with ac­tive bonds lodged by ten­ants has fallen by nearly 200 over the 12 months to Oc­to­ber, with the num­ber of ac­tive bonds in place around Hawke’s Bay fall­ing to 10,648.

MBIE dis­pute res­o­lu­tion na­tional man­ager Al­lan Gal­loway said ac­tive bonds re­lated to the num­ber of rental prop­er­ties for which a land­lord has taken a bond. “Not all land­lords take bonds; where this is the case, these rental prop­er­ties would not be re­flected in our bonds data.”

Last week, Hous­ing and Ur­ban De­vel­op­ment Minister Phil Twyford la­belled claims by Na­tional Party leader Si­mon Bridges that mum and dad in­vestors were be­ing driven out of the rental mar­ket by Gov­ern­ment poli­cies, as “scare­mon­ger­ing”.

How­ever, there are fewer than 100 prop­er­ties for rent (listed on Trade Me).

NZ Prop­erty In­vestors Fed­er­a­tion’s Hawke’s Bay-based na­tional pres­i­dent Sharon Cull­wick said there were sev­eral fac­tors be­hind the lack of rentals.

“In HBPIA we are see­ing some of the older in­vestors ex­it­ing the mar­ket due to the in­creas­ing costs that will be as­so­ci­ated with the RTA re­form and the Healthy Homes Amend­ment Bill when the de­tails are re­leased next year. We also know that the av­er­age age for a prop­erty in­vestor is be­tween 65-70. This is older than other parts of the coun­try.

“In Hawke’s Bay we know that ten­ants are stay­ing longer in houses than pre­vi­ously — the main rea­son is they have nowhere to go. In a re­cent monthly meet­ing of the Hawke’s Bay Prop­erty In­vestors As­so­ci­a­tion (HBPIA) where about 50 mem­bers at­tended we asked who had houses avail­able to rent and only one per­son had one avail­able but they hadn’t ad­ver­tised it for rent yet, due to ren­o­vat­ing it. I guess the av­er­age num­ber of prop­er­ties per per­son in the room is about five prop­er­ties.”

How­ever, Tre­mains Rentals man­ager Ruth Shan­non said the com­pany had been able to rent out al­most the same num­ber of prop­er­ties as it did last year.

“We haven’t no­ticed any dif­fer­ence. I guess the pos­i­tive now is that they don’t sit around very long. The down­time in be­tween is min­imised and the advertising pe­riod is about a week and it’s gone.”

In fact, 28 prop­er­ties were rented in Oc­to­ber — six more than the same month last year.

PHOTO / FILE

Rental prop­er­ties are in short sup­ply.

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