If you combine a higher cost of living, increasing interest rates, stricter rules around mortgage lending, emigration and an uncertain political climate you’re sure to come across the perfect recipe for a slowing property market.

With this sluggish market comes an interesting change in how properties are sold. While it was hot last year, auctions were popular and most homes were marketed without a sale price in mind because the owner and the real estate agent were capitalising on the sudden seller’s market. Even private landlords were making decisions to sell their investment properties to take advantage of the market.

Now that interest has waned, recent data from realestate.nz says that auction listings have dropped by 34.3 percent while displayed prices have increased by 24.8 percent. Rental properties aren’t selling as fast as they were, leading to more properties being put up for rent.

While a lot were on the market last year, sensible property owners with a portfolio of rentals are choosing to stay calm and carry on with their current properties. They know that every dip precedes a rise and for now, tenants will always want to rent a nice home.

The tenants’ market

Since the big property boom last year, many New Zealanders have jumped the ditch for better opportunities — known as a “brain drain” — with over 10,000 people emigrating in the year ending June.

The increasing levels of movement out of New Zealand can be attributed to a variety of factors including the higher cost of living, fewer opportunities and more restrictions on lifestyle and employment in comparison to other western countries.

While the sales market has moved from a sellers’ to a buyers’ market, the rental trade has flipped over to a tenants’ market, with fewer people looking for rentals. This means that tenants can be more picky than they were last year and expect more from their landlord.

Thanks to changes to the residential tenancy act, it’s more important than ever that prospective landlords have all of their ducks in a row to keep them safe from any future costs or trouble if they don’t meet the regulations.

As professional property managers, we’re finding that tenants are a lot more likely to contact us than they are to go with a private landlord as they trust that we understand the rules and regulations and will only provide them with properties that are up to the right living standards according to relevant government regulations.

What to look for

As a prospective tenant, it’s important to ensure that you place emphasis on healthy home compliance, regular maintenance and heating affordability. You also want to make sure that your property is low maintenance both inside and outside and if it isn’t, whether the landlord expects you to keep up the gardens etc.

For a landlord, the list is huge in terms of offering a good home up for rental. It needs to tick all the boxes mentioned above but it also needs to fit the requirements of your dream renter. Is it in an area they’d want to live in? Does it have enough rooms? Is it close to amenities?

As a landlord, if you believe you have a good rental property or portfolio, but aren’t sure about the future or how to keep meeting compliance, it’s of utmost importance to speak with a professional who has their fingers on the pulse of the rental market.

How Vertigro can help 

Vertigro is an owner-operated property management company based in the ever-popular Red Beach community, which employs passionate property managers with experience working in the industry. We’ve seen the ups and downs that are inevitable in property management and understand how the market operates. While we don’t have a crystal ball, we can help you keep your rental properties up-to-date as well as advise you on what to expect in terms of rental property movement.

We also make it our core mission to find the perfect fit for your rental property, and we do this by delivering top-level marketing campaigns aimed at your target market. We have a great core base of tenants who we work with and who are reliable and have excellent references. A professional property manager will take all the stress away and help you navigate the dips and turns of the property market.

To find out how our independent property managers can help you get the most out of your rental asset, give us a call today at 021 646686.