Comments on: Retreating residential rents

By: John

John — Tue, 01 Jul 2008 01:58:04 +0000

I put rent up in one apartment (not a box in the city, but up-market Parnell) when a couple left the flat and another couple replaced them (one person remained from the initial tenancy). I sent the 2 month advice of increasing rent to a set of 3 one-bedroom apartments a month ago. I had not raised the rent in the 2-3 years the tenants had been there. It possibly does not quite meet the typical rent for similar properties (considering carport, lawns and water are included). I did not want to lose tenants mid-winter. I may increase the rent in 6 months to coincide with the Feb influx of tenants.

By: Lea

Lea — Sun, 29 Jun 2008 06:48:39 +0000

A year ago we sold our own home and were desperate to rent a large house. With only one week to move there was not a lot available so we took a house at $550 week
Our landlord just put the rent up to $575, due to rising food & petrol costs we decided to look around. To our amazement there was plenty on offer – cheaper.
We have taken a slightly smaller house at $475. The family are moving overseas and can’t sell in a flat market so we are the happy recipients.

By: Spurner

Spurner — Fri, 27 Jun 2008 07:46:22 +0000

It is being looked at over too short a period of time. Look out in Jan/Feb ’09 for a large jump in rents.

Also, I notice the statistics used state that between Feb ’08 and May ’08, the average rent in Wellington decreased from $390pw to $270pw. This is ridiculous and they lose all credibility on this point alone, what planet are these guys from?

By: Rick

Rick — Fri, 27 Jun 2008 06:41:31 +0000

I think that the rent movement is more to do with the economic downturn than most would like to acknowledge – I think that some of the rents have reached saturation point and now the tenants are speaking with their feet which is affecting the national average.

In support of that, we have just rented out one of our places in Hawke’s Bay and had over 30 lots of people come through when we did the open home… and then 10 applied (both these numbers where a bit of surprise I can tell you) – FYI: our rents are loosely based on the tenancy stats so aren’t high or low just median orientated.

The most interesting part was that the reason for moving was predominantly that rents had gone up to much at their current location…. I think this is more of a trend rather than a blip.

Landlords should be cautious of raising rents too much just because the hear others are doing so.

my 2 cents worth

By: JD

JD — Fri, 27 Jun 2008 05:32:33 +0000

HI,
I agree with rents dropping.In January we rented out a house at $600 per week. The house we also own next door of better quality has just been let for $550 and we had to allow 2 dogs. In our area in Jan on Trade Me there was 8 houses for rent. Today there is 58.

By: nevvy

nevvy — Fri, 27 Jun 2008 04:12:30 +0000

The reason for the drop in rents is a seasonal factor.Its the northern spring and the time for the footloose to bolt from our winter.Larger (3, 4 or more bedroomed)flats feel the vacancies most as they mostly comprise groups of singles who go on their OEs around now.Tenant demand will pick up late December early January as per usual. As quasimodo the bellringer said,Do not be afraid.:}