Every region in New Zealand had an annual increase in rent in July (the most recent month for which figures are available) as rental properties across the country continue to attract a lot of interest from potential tenants, according to the latest Trade Me Rental Price Index.
Trade Me Property’s Aaron Clancy said many regions experienced double-digit growth in July, rental property enquiries increased by 20% nationwide and the national median weekly rent rose 5.3% to $500 over the previous 12 months.
“Supply isn’t keeping up,” Clancy said, “with the number of rentals dipping 5% nationwide compared with 12 months earlier. With rents remaining high, demand increasing and supply slipping, all the signs are pointing to record breaking rents this summer.”
Manawatu/Whanganui, Otago and the West Coast hit new highs in July while Bay of Plenty (up 55%) and Otago (up 34%) had a huge surge in demand reflected by the number of inquiries.
Tenants in Wellington could expect to pay another $50 per week in rent compared to last year after the region’s median weekly rent rose 10.4% to $530.
“Auckland’s median weekly rent rose 1.8 per cent or $10 per week to $560 in July. While rents in the region have remained unchanged since February, we think this rising demand and falling supply will put pressure on prices, which means we will likely see some big jumps in the coming months,” Clancy said.
Click this link of tables, graphs and maps to see Trademe data on rent comparisons with July 2018.
Tribunal fines tenant for subletting
A couple who sub-let a central Auckland apartment for $215 per night have instead found themselves out of pocket after the Tenancy Tribunal ordered them to pay for damage caused by the short-stayers, and hand over the profits.
In July, the Tribunal ruled that the tenants breached their rental agreement when they advertised their Auckland apartment online for short-term rent the day after their tenancy agreement began in February this year.
Tenancy Tribunal adjudicator Nicola Maplesden found the tenants had broken the law by intentionally sub-letting the property without the consent of the landlord, and had deliberately misled the property managers to believe they would be living in the apartment and possibly getting one more flatmate.
"I find that their deliberate intent was to make a profit from renting out the apartment," said Maplesden.
She said neighbours felt that their security and safety was compromised by the variety of people coming and going and were disturbed by at least two noisy parties, including one where an external window was broken and police were called at 2:30am.
She awarded the property management company a total $1,574.44 plus the profits made by the short term sub-letting.
