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Residential Rents Remain Flat in Q2, but Up Year-on-Year by $30 a WeekIn the June quarter (Q2) of this year, residential rents remained stable but showed an average increase of $30 per week compared to the same period last year.Data from Tenancy Services' bond records reveal that the national median rent stood at $600 per week in Q2, unchanged from the first quarter of this year. However, this figure represents a 5.3% rise, or $30 per week, compared to Q2 of the previous year.This trend was also reflected across different types of rental properties.For three-bedroom houses, the median rent remained steady at $650 per week between Q1 and Q2 but saw a 4.8% year-on-year increase, up by $30 per week compared to Q2 last year.Similarly, the median rent for two-bedroom apartments and units was unchanged at $600 per week in Q2 but rose by $25 per week (4.3%) over the previous year.One-bedroom apartments/units experienced the least variation, increasing by $10 per week (2.2%) in Q2 to reach $460 per week, after remaining stable at $450 per week for the prior four quarters.Rental activity also remained flat, with Tenancy Services processing 34,788 bonds in Q2, representing a minimal 0.4% decrease compared to the same quarter last year.Among the 41 main urban districts monitored by Interest.co.nz, 20 saw an increase in median rents between Q1 and Q2, 12 recorded no change, and nine experienced declines. A full breakdown of district-by-district figures is provided in the accompanying table.In terms of the most expensive places to rent, Auckland's Orakei Ward holds the top spot with a median rent of $780 per week, narrowly edging out Queenstown-Lakes at $775 per week.On the other end of the spectrum, Timaru and Invercargill tied for the title of the cheapest rental markets, each with a median rent of $450 per week.Queenstown-Lakes recorded the largest quarterly rent increase, up $75 per week in Q2, while Dunedin posted the biggest decline, with rents dropping by $105 per week in the same period.Dunedin’s rental decrease was not unexpected, as the city typically sees a sharp rise in median rents in Q1 due to the influx of students, followed by a significant dip in Q2. On an annual basis, Dunedin's median rent still showed a $35 per week increase.Overall, Auckland rents showed more moderate annual growth, rising by 4.8% over the year. In contrast, rents in the northern part of the South Island, from Nelson to Selwyn, saw double-digit percentage increases over the same period.

Rents Remain Flat in Q2  - August 2024

Time To Update. Hand with megaphone / loudspeaker. Health and safety at workplace concept.

The previous month (June 2024) has seen a record number of available rental properties in the North Island, creating a lean towards a tenant's market where supply exceeds demand. Despite this, many of our properties are still leasing within a reasonable timeframe. In this competitive landscape, it's crucial for landlords to ensure their properties stand out through effective marketing, competitive pricing, and diligent tenant follow-up to secure leases quickly. Landlords should also consider small property upgrades and professional photography to enhance their property's appeal. At The Rent House, we are proud that despite this, we are still maintaining very good results on average across the board.

Rental Market Update - July 2024

New Zealand money: fifty dollar notes on a black background.

<figure id="figure-xxej79mctulv3k0b4c" class=""><img id="xxej79mctulv3k0b4c" src="https://cdn.durable.co/shutterstock/11Fx97nMHfjYyeQQJPeG5woeHeVWMJbkKTT5kaYWfRFMAnfUeZxbFHdUilJdWuOR.jpeg" alt=" business woman hand calculating her monthly expenses during tax season with coins, calculator, credit card and account bank, idea for dept collection background " title=" business woman hand calculating her monthly expenses during tax season with coins, calculator, credit card and account bank, idea for dept collection background " class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 85% 55%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="85%" data-positiony="55%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/shutterstock/11Fx97nMHfjYyeQQJPeG5woeHeVWMJbkKTT5kaYWfRFMAnfUeZxbFHdUilJdWuOR.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: 85% 55%;"></figure>The Reserve Bank (RBNZ) has confirmed “activation” of the new debt-to-income (DTI) restrictions, along with the related loosening of loan to value ratio (LVR) limits from July 1 this year. Speed limits to lending will apply: » 20% of new owner-occupier lending to borrowers with a DTI ratio over 6; and » 20% of new investor lending to borrowers with a DTI ratio over 7.Banks will need to comply with the new DTI and LVR restrictions from July 1, 2024; having previously been given 12 months to prepare their systems for the possible implementation of DTI restrictions. Some banks have already written these changes into their policies, extra requirements include: • All income sources needing to be evidenced <span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));">• All external debt being evidenced • All debt limits taken into consideration regardless of nil balance, including credit cards, personal loans and overdraft facilities • Higher uncommitted income requirements in the loan servicing calculators for different DTI levels for example, an investor with: ○ A DTI &lt;7 and LVR of 65% requires a pass in the banks loan calculator of $200 per month, and ○ A DTI &gt;7 and LVR of &gt;65%&lt;80% requires a pass in the banks calculator of $300 per month, and ○ A DTI &gt;7 and LVR of &gt;80% requires a pass in the banks calculator of $750 per month <span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));"> The calculation for DTI equals total debt divided by total annual gross income. Some exempt scenarios to DTI ratios include: • Refinancing • Purchasing a new build • Construction loans • Kai Nga Ora Loans • Bridging finance<span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));"> Loosening of the LVR requirements will coincide with banks speed limits now being: » 20% of new owner-occupier lending over 80% » 5% of new investor lending with an LVR above 70% <span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));">We’re expecting a lot of change and appetite for different LVR and DTI levels are likely going to vary between lenders.<span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));">Article contributed by <a data-mce-href="https://vegalend.co.nz/" href="https://vegalend.co.nz/" target="_blank" rel="noopener" data-mce-selected="inline-boundary">Vega Mortgages﻿</a>

RBNZ activates DTI restrictions - June 2024

Big data concept. Businessman facing a tsunami wave of computer data, huge amount of numbers and letters, on white background.

<figure id="figure-xxej79mctulv3k0b4c" class="selected"><img id="xxej79mctulv3k0b4c" src="https://cdn.durable.co/shutterstock/28qy4RrpeSqFVPCKSx4NvZzkS3EpIWaRBtiFBqHW7HDAtsJnAA3gvqBqbeG0gTRh.jpeg" alt="Dramatic beach scene, big emerald green wave crashing on the shore, deserted beach in summer. close up wave" title="Dramatic beach scene, big emerald green wave crashing on the shore, deserted beach in summer. close up wave" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 85% 55%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="85%" data-positiony="55%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/shutterstock/28qy4RrpeSqFVPCKSx4NvZzkS3EpIWaRBtiFBqHW7HDAtsJnAA3gvqBqbeG0gTRh.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: 85% 55%;"></figure>Tsunamis by their very nature arrive largely unannounced apart from the unusually low ‘tide’ that precedes them. In today’s soft property market that unusually low tide is obvious based on the record low property sales volumes. &nbsp;The backdrop for the coming property price growth tsunami includes the current crisis of confidence in the property market. A crisis that was engineered with a somewhat misguided goal to reduce the value of every property in New Zealand in the name of making house prices ‘affordable and sustainable’ for all, forever. A goal that failed to account for the fact that when a manufactured property crisis ends, a boom in property values follows. A goal that failed to account for the long-term natural cyclical nature of the housing market.The last four New Zealand property cycles have provided a rich source of valuable insights that indicate what is beyond the property market ‘event horizon’ for property values. For example, whenever there is a financial crisis, crisis of confidence, or credit crunch then values stall/fall. However, once the crisis dissipates sales volumes, and prices always bounce-back. Property market recoveries are usually rapid and the stampeding herd of potential property buyers, driven in part by ‘animal spirits’, is always difficult to curb once it takes a firm direction. At the moment the herd is still restricted by the current credit crunch and lack of confidence.The ‘Law of the vital few’ however implies house price growth rates are based on very few sales compared to the total number of properties in any given location. That means a relatively small shift in demand in a suburb, or city, can suddenly inspire a significant movement in property values for an entire suburb or even a city.Today the tide that drives the property cycle is turning. The incoming tide when it does arrive looks likely to be more of a tsunami and it’s arrival may well be sooner than you think.- Written by Kieran TrassDirector of <a data-mce-href="https://tellmethetime.co.nz/" href="https://tellmethetime.co.nz/" target="_blank" rel="noopener">TELL ME THE TIME</a>

The Coming Property Price Growth Tsunami - May 2024

Tenancy Law , man writing on transparent screen

<h2>The return of 90-day ‘no-cause evictions’</h2><figure id="figure-xxej79mctulv3k0b4c"><img id="xxej79mctulv3k0b4c" src="https://cdn.durable.co/shutterstock/15juq3tQXJ26pTcN45x8NnhrTu04dU02xq9GX4VWQdPSi7JMaVSeow6x9umz9mY7.jpeg" alt="Image of Residential Tenancy Agreement with money and keys" title="Image of Residential Tenancy Agreement with money and keys" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 85% 55%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="85%" data-positiony="55%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/shutterstock/15juq3tQXJ26pTcN45x8NnhrTu04dU02xq9GX4VWQdPSi7JMaVSeow6x9umz9mY7.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: 85% 55%;"></figure>A law change in 2020 meant landlords lost the ability to end a tenancy without giving a reason, provided they gave 90 days’ notice. The Government plans to reinstate this. This means that landlords will once again be able to tell their tenants to shift out, without telling them why, provided they give enough notice.<h2>Reduction in notice periods</h2>The Government will reduce tenants’ required notice period for the end of a periodic tenancy from 28 days to 21, and will reduce the amount of time that landlords have to give if they want to sell, do renovations, redevelop or move in to a property from 90 days to 42.<h2>Pet Bonds</h2>Pet owners have the Act Party to thank for his one – it wants landlords to be able to ask for extra rent (2 week's pet bond) to cover potential damage to a rental property from an animal. At the moment, landlords cannot charge more than four weeks’ rent as a bond.

Upcoming Tenancy Changes - April 2024

<h2>It’s Our 6th Birthday!</h2><figure id="figure-xxej79mctulv3k0b4c"><img id="xxej79mctulv3k0b4c" src="https://cdn.durable.co/blocks/7VoywhGzstngWMm2jAQZTdHHirFrtNYJ4BSCBTmiHNcTpfPN8PsxPmKuyhG2kU6o.png" alt="windowpanes at the building" title="windowpanes at the building" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 85% 55%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="85%" data-positiony="55%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/7VoywhGzstngWMm2jAQZTdHHirFrtNYJ4BSCBTmiHNcTpfPN8PsxPmKuyhG2kU6o.png" data-mce-style="aspect-ratio: 16/9; object-position: 85% 55%;"></figure>As we celebrate The Rent House reaching the remarkable milestone of six years in business, it's a moment to reflect on our journey, achievements, and the incredible community that has made it all possible.Six years ago, we embarked on a mission to redefine property management, armed with a passionate team and a vision for excellence. Today, as we pause to mark this occasion, we find ourselves humbled by the journey we've undertaken and the progress we've made.One of the cornerstones of our success has been our team – many of whom have been with us from the very beginning. Their dedication, expertise, and unwavering commitment to our vision have formed the bedrock of our company. Together, we've built not just a business, but a family, united by a shared passion for providing exceptional service to our landlords and tenants alike.Our success is also a testament to the strong foundations we've laid – meticulous attention to detail, a relentless pursuit of innovation, and a steadfast commitment to integrity in all that we do. These values have guided us through every challenge and opportunity, ensuring that we not only survive but thrive in an ever-evolving industry landscape.Of course, none of this would have been possible without the trust and support of our clients. Your faith in us, your partnership, and your invaluable feedback have been the driving force behind our growth and success. As we look to the future, we are more committed than ever to exceeding your expectations and delivering exceptional results.So, as we raise a toast to six years of growth, achievement, and camaraderie, we extend our heartfelt gratitude to each and every one of you who has been a part of this incredible journey. Here's to many more years of success, collaboration, and making a difference in the world of property management.<h2>New Fleet Additions!</h2>Our team is hitting the road in style this month with brand new fleet cars! We made the move to spacious SUV’s for our team, recognising the time that they spend on the road and the importance of both comfort and safety.&nbsp;<figure id="figure-ct087oet57lukkqdne"><img id="ct087oet57lukkqdne" src="https://cdn.durable.co/blocks/2dj0zbZcPcprZFzo6tCaj8JNYyAfcSa9i9IS4v8p8Fv3KwSEgzfj14EEDXKg7nw4.jpg" alt="property budget" title="property budget" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 50% 70%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="50%" data-positiony="70%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2dj0zbZcPcprZFzo6tCaj8JNYyAfcSa9i9IS4v8p8Fv3KwSEgzfj14EEDXKg7nw4.jpg" data-mce-style="aspect-ratio: 16/9; object-position: 50% 70%;"></figure><h2>Welcome to the Team, Lana!</h2>We are delighted to announce that Lana Miller has joined our team as Tenancy Manager. Lana started her journey with us as a temp to assist with an influx of growth and we very quickly recognised that she was the perfect fit for our team, well aligned to our common goal of creating service excellence. Lana brings a wealth of experience to The Rent House team, with a background in real estate and business development. Lana's multifaceted skillset and proven success in market analysis, negotation and client satisfaction distinguish her in the industry. With a client-centric approach, Lana always prioritises the needs and goals of clients, backed by an unwavering dedication to professional development.&nbsp;Lana's role is that of Tenancy Manager, working alongside Senior Property Manager Jo Cavanagh. Lana covers many of the on-the-road functions for the team as well as being a reliable port of call for tenants. Lana has an excellent eye for detail, a calm and collected approach to problem-solving and understands various walks of life which makes her an approachable but firm Tenancy Manager.<figure id="figure-0ljx2im7rilukkqepr" data-full-width=""><img id="0ljx2im7rilukkqepr" src="https://cdn.durable.co/shutterstock/11k1E7oWE4OlZmdq5sEHNk9vZhJn4m1IvoddcggPtqL3E8PKP3O5rSZjSAP4O6ri.jpeg" alt="Welcome basket with flowers" title="Welcome basket with flowers" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: 50% 60%;" data-corners="small" data-aspect="16:9" data-caption="" data-positionx="50%" data-positiony="60%" data-fullwidth="true" data-mce-src="https://cdn.durable.co/shutterstock/11k1E7oWE4OlZmdq5sEHNk9vZhJn4m1IvoddcggPtqL3E8PKP3O5rSZjSAP4O6ri.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: 50% 60%;"></figure><h2>We Have Expanded!</h2>Over the past year, we've been on a journey of expansion, both in terms of our team and the areas we provide property management services. We're delighted to announce that we now cover a vast stretch of territory, from Wellsford to Taupo!Understanding the needs of landlords with properties spanning multiple areas, we've made it our mission to provide seamless property management solutions. We recognise the importance of having a single point of contact and communication channel, regardless of the geographical spread of your properties. That's why we've dedicated ourselves to working tirelessly to make this a reality.With our expanded reach, you can trust that no matter where your properties are located within our service area, you'll still enjoy the same level of personalised attention, expertise, and commitment to excellence from us.<figure id="figure-dm6xol1f9zlukkqfmt"><img id="dm6xol1f9zlukkqfmt" src="https://cdn.durable.co/blocks/1ePu1meoKsgURdO2wm63VOBDMp7Y8uvBwzXaNYJYkDDXEIvMM6FYsYryOuk4rrde.png" alt="property location" title="property location" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 50% 30%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="50%" data-positiony="30%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1ePu1meoKsgURdO2wm63VOBDMp7Y8uvBwzXaNYJYkDDXEIvMM6FYsYryOuk4rrde.png" data-mce-style="aspect-ratio: 16/9; object-position: 50% 30%;"></figure><h2>Interest Deductibility &amp; Brightline</h2>The current National-Act-NZ First coalition government has confirmed the return of interest deductibility to residential property investment, with the phased-in changes taking effect for property investors from April 1, 2024. New legislation will be passed allowing landlords to deduct 80% of interest expenses on property investments from April 1, 2024 (i.e in the year to 31 March 2025). Deductibility will increase to 100% from April 1, 2025 (i.e. the 2025-2026 financial year). (The 2023-2024 financial year will retain interest deductibility of 50%).The government has also planned to reduce the brightline test (the de-facto capital gains tax) from 10 years to 2 years effective July 1, 2024. This means that people who sell residential investment properties within two years of purchase will have to pay tax on any capital gains. Currently, this period is 10 years for existing investment property and 5 years for new-builds.After July 1, all property will fall under the ‘two-year test’&nbsp;(regardless of new-build or existing).&nbsp;As an example, someone who sells a property after July 1, 2024 and bought it 3 years ago wouldn’t be taxed under the test. The ‘main home’ or family residence continues to be tax exempt. Under the proposed change, any property is considered an investment if it wasn’t used as the main home for more than half the time it was owned.<figure id="figure-f63g497u7lukkqg32"><img id="f63g497u7lukkqg32" src="https://images.unsplash.com/photo-1417733403748-83bbc7c05140?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMHx8bmV0d29ya2luZ3xlbnwwfHx8fDE3MTIxNjU1ODh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="networking" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1417733403748-83bbc7c05140?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMHx8bmV0d29ya2luZ3xlbnwwfHx8fDE3MTIxNjU1ODh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

Our Blog

Rents Remain Flat in Q2 - August 2024

Rental Market Update - July 2024

RBNZ activates DTI restrictions - June 2024

The Coming Property Price Growth Tsunami - May 2024

Upcoming Tenancy Changes - April 2024

Company Update - March 2024