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:
- 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.
- 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.
- Rate increases in the area has meant landlords have had to increase rent prices.
- 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
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:
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’.”
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.
Executive property for rent. 4 bedroom, 2 bathrooms, 3 living areas. Decks with fabulous views, private & beautifully decorated with a chefs kitchen and plenty of off-street secure parking. $560 p/w. Call us today 0800 333 221.
A recent article in the Bay of Plenty Times outlined why now is the perfect time to invest in property in Tauranga and surrounding areas such as Mount Maunganui and Papamoa.
The article stated that there is a deepening rental shortage, following on from the release of Trade Me figures showing demand for accommodation in these areas continues to outstrip supply. The figures show the supply of available rental properties dropped by 18 per cent in the October-December quarter while demand ballooned by 17 per cent for the same period, and the average weekly rent also jumped by 18 per cent.
The shortage can be attributed to two factors, firstly the city’s rapid growth, and secondly the Reserve Bank’s restriction on loan-to-value ratio (LVR) lending. Nationwide the LVR restriction has prevented many first-home buyers from entering the real estate market and has forced them to continue renting. This has resulted in renters that are desperate for decent accommodation.
We find that renters come from all over, including Auckland, Hamilton and Australia. Mount Maunganui and Papamoa rentals are especially popular for these new residents, and the Pyes Pa area has also seen a huge growth in terms of demand this year. Summer is usually the most popular time, with families wanting to find a home before the school year begins.
If you are considering purchasing investment property in Tauranga, Papamoa and the Mount Maunganui areas, call Chris or Nicky for more information about the best places to buy, rental returns for the area and more.
Given the rental situation is nearly at crisis level, now is the perfect time to buy!