Bonds taken, Bonds Lodged & Rental Stats

[essence]

I've been keeping an eye on the number of dwellings available where I have my rentals, and have noticed that there are very few and that what they are being advertised for, the rentals are higher than mine. This keeps me informed about availability and future rent increases/setting the initial rental.

What has perplexed me though, is when I have gone onto the DBH website to check the areas rental stats, these numbers aren't showing.

I do realise that there is a lag between the advertising, letting and the stats showing, however the advertised prices have been creeping up but the DBH prices haven't, even over a six month period. I understand that the DBH numbers are worked out over a rolling six month period.

Musing out loud, does this mean :

a The rentals aren't achieving the rents advertised?? I don't think this would be the case as there is a shortage currently in the area.
b That the higher rents are being set but the LL's aren't taking Bonds?? Possible but unlikely? Can't see why a LL would do this.
c That the higher rents are being set, the Bond's taken and then not lodged with DBH.

Have other forumites noticed this at all?

[Green Fish]

I'd put it down to data lag (same with Quotable Value).

Am reluctant to say this on a forum that tenants can access, but the plain fact is that a good tenant is becoming harder to find. And I'm not talking about the tenant's devotion to his or her responsibilities under the tenancy agreement. I'm talking about a tenant who can afford to pay the rent that I want.

[Niall]

Hi Viv,

If a landlord does not fill in the bond lodgment to its fullest the DBH dont include it.

I have found that rents are rising lots recently. There isnot a huge supply of properties out there presently. Only 400 in Wellington City at the moment on Trademe. So the best properties available get a premium rent.
I have let 6 places since December and all the rents have been more than the Median Quartile on www.dbh.govt.nz

Rented at --------------- DBH Median Quartile
$430 pw --------------- $347 pw
$395 pw --------------- $347 pw
$340 pw --------------- $300 pw
$340 pw --------------- $300 pw
$315 pw --------------- $300 pw
$310 pw --------------- $300 pw

Thats $12k more in cashflow than the Median.

The website is usefull as its a picture of all the "correctly" filled out bonds. I pick the rent to use by seeing what else is on the market that is similar to mine. Then I advertise it at abit priceer than the competition and market the place will all the supurlatives I can muster.

Hows the empire expanding up with you?

Are you going to be hopping out a few rental increase letters this week!?

All the best,

Niall

[spurner]

I think there statistics are out of whack too. In the area I invest in, there are 6 x 2 bedroom flats advertised on TM, with an average rent of $417.50pw. However the DBH site says the median is $302pw.

One other issue I have is regarding bedsit / studio flats, and what these are recorded as being for statistical purposes. My guess is they are listed as a 1br flat, dragging down the median rental. I had asked the DBH this question but they were unable to answer it.

Conclusion: there is a conspiracy to keep reported rentals low!

The Answer: we all add $50pw on the section of the form where it asks for the rental amount, this won't affect the bond. Alternatively, record the 4br house as a 3br house. Or the 2br flat as a 1br flat. This should even things up a little.

[essence]

Rising rents

If a landlord does not fill in the bond lodgment to its fullest the DBH dont include it.

Ahhhh, didn't know that. Surely that defeats the purpose of running the stats though, doesn't it? Whether the form is filled out correctly or not, the fact that they have a Bond at XXXX for XXX bdrm property in XXX suburb means that can get the numbers for a BETTER set of stats. Oh wait, that would mean proactive thinking by bureaucrats - I've answered my own question.

Hows the empire expanding up with you?

Yes, the force is well in this area.

Are you going to be hopping out a few rental increase letters this week!?

Given the examples you've got, I think I will seriously have to think about it.

[Bodmin]

More up to date data?

I also use the landlords.co.nz site http://www.landlords.co.nz/housing-s...tal-graphs.php as this seems to be more real time. Also some areas on Streetvalue are more granular than DBH or Landlords. As mentioned above we also use Trademe as a barometer.

Cheers