Tauranga Rental Shortage Sees Rents Rise

Picture illustrating Connect Realty blog about rent rises

Connect Realty featured in another article this week in the Bay of Plenty Times.  This article was focused on rent increases in Tauranga and the surrounding areas.  The current rental shortage has been developing over the last 12 months, and rent increases are occurring for a number of reasons:

  1. Supply and demand.  Currently Tauranga is experiencing huge population growth, with people choosing to  move to the Bay of Plenty from Auckland and other regions because of lifestyle and employment options.  This has resulted in an increased demand for housing which has yet to be met by new builds and developments.
  2. First home buyers are purchasing former rental properties, as they are often more affordable homes, resulting in a shortage of rental properties available to tenants.
  3.  Rate increases in the area has meant landlords have had to increase rent prices.
  4.  Landlords have had to increase rents to meet maintenance and upgrade costs, such as installing efficient heating solutions like heat pumps and double glazing.

The current rental problems will not be fixed until the housing stock in Tauranga significantly increases to meet the extra demand.  At present there are 30% fewer houses on TradeMe than this time last year – so we are still some way off from seeing the market correct itself.

If you are a property investor, or if you are considering investing in property on the Bay of Plenty, give Chris a call or email today.  We can provide you with real estate statistics for the Tauranga area, expected rental returns and discuss our property management services with you.  Visit our website and our Contact Us page for more information.

 

Read the full Bay of Plenty Times article by Catherine Gaffaney and Ruth Keber – Short supply nudges up rents

Connect Realty Property Managers Help Couple Find A Home To Rent

We recently shared an article from the Bay of Plenty times about the rental shortage problem in Tauranga and the surrounding areas. Within the print edition of this article was a story about our wonderful new client Madison Lesa.

Madison and her partner had been searching for a house to rent for 5 months, with no luck.  Madison saw and liked a property we had advertised for rent, so she filled out one of our application forms and phoned our office.  Property Manager Nicky Ryan met Madison at the property and was very impressed with how she presented herself, and knew she would make a great tenant for our property.

This is Madison’s story as told by the Bay of Plenty Times:

Photo of Madison Lesa who rented a house from connect realty property managers

Madison Lesa

After five months of hunting Madison Lesa and her boyfriend have finally found a house to rent.

The 21-year-old, who is studying primary teaching full-time, struggled to find a rental property for her, her boyfriend and another couple.

“My boyfriend and I are both 21 so we get stereotyped as a partier or a house trasher,” she said.

Competition for properties was fierce and it was not uncommon for listing on TradeMe to have been viewed hundreds or even thousands of times, she said.

Miss Lesa was thrilled to have been given an opportunity and was excited to be moving into the central city house on Friday.

Her advice to others was to “sell yourself”.

“It’s like going into a job interview. Instead of going through the internet all the time it’s good to go into a real estate agent and say ‘hi’.”

Read Full Article Here

Nicky and the team are thrilled that they were able to find a rental property to suit Madison.

If you, or anyone you know, are looking for a place to rent OR if you have an investment property you wish to rent out – Contact Connect Realty today.  Our friendly and helpful team will be happy to help 0800 333 221.