Rental Demand

Mike ReedUncategorized

Trade me is still the best website that the majority of tenants look at when they want to rent a house. Its straightforward to use and most people have Trade me accounts. Tenants can save searches for certain areas, with new properties emailed to them daily.  They can easily compare comparable properties to get an idea of market rents in that area or city.

It’s a must for Property Managers & Landlords to list their property there because that’s where the tenants are looking. We can show up to 20 Photos, Its best if they look professional as you are more likely to get the great tenants applying. A picture tells a 1000 words. The amount of times I see listings with photos upside down or sideways, blurry or very dark is unbelievable.  I always wonder what the owners think when they see their expensive house advertised like this.

The graph shows the amount of Trade me listings in Tauranga & Rotorua since 2013.

A comfortable level where there is choice for tenants & Landlords would be around 300 for Tauranga and 200 in Rotorua. Rotorua went under 100 listings in 2016 and has never got back over that level . Part of the reason is AirBNB which has gone from 100 to 900 listings in the last 4 years.

Rents for my properties in Rotorua have increased 40% in the last 5 years while those I manage in Tauranga around 25%.

Rotorua like Tauranga has had a strong economy with an increase in population but has not had the large development of new subdivisions & new homes. There is now a serious shortage of rental homes for tenants thus the large increase in rents. I’m currently subdividing a section from one of my properties & building a new house which will house 1 family. My Budget for rent 1 year ago was $450, now it will be more likely $500 when the house is finished next year. Rising rents from ever increasing demand creates lots of opportunities for those with a long term outlook.