Calibre of tenants these days!

[Sanya]

Welcome to the forum Coolcruising.

What part of NZ are you trying to let?

Using a property manager is an option.

[Coolcruising]

Hello , New LL here, trying to learn what we need to know, and it seems to be a minefield out there.
We have got two properties that have now since been freed up to rent as we are merging the family into one large house, and going bonkers to try and build assets! Finding tennants was interesting and we figured out soon enough that everyone has a sob story or three. Another thing we noticed was the laziness in replying for a tennancy advert, txtspk ruled supreme, and being in our 50s neither of us understood what these millennials were going on about!
Anyway fun filled days ahead with this minefield, I think we will have our work cut pout navigating these seas!

[Frezzinghot]

^^ with so many applications you weren’t charging too much. Maybe the opposite- not enough and the professional tenants looking around thought it was too cheap!

Cheers

Donna

I know my market and I never get that part wrong, it was on trade me & marketplace. Marketplace is full of below par individuals so you get what you search for! The odd good candidate is there and you can sometimes find someone through.

[donna]

^^ with so many applications you weren’t charging too much. Maybe the opposite- not enough and the professional tenants looking around thought it was too cheap!

Cheers

Donna

[Frezzinghot]

So it took about 2 weeks to find a new tenant. Given the time of year that timeframe wasn’t too bad. Main observations were many applications/interest over 100, were unsuitable. Plenty not working and lots on the housing benefits. I’m not against welfare tenants but many could not string a few sentences together and communicating would have been difficult. I’d say finding good tenants is the biggest challenge we have atm, and yes we thought about getting this one managed.

anyway, my thoughts are all the good ones are already housed and happy to stay on, those looking at this time of year are a different calibre. Still we got there in the end.

[Jeffa]

Housing shortage? What housing shortage?

Actually McDuck said he believed quite some time back, perhaps early 2021, another black swan event in the amount of construction going on in Auckland causing an over supply , which is pretty obvious around Auckland with all the new builds .

I did reply, if an over supply was to happen, the government would open up immigration, immigration is starting to reverse from a net negative to a net positive relatively fast, immigration will grow even faster next year

Even Labour understand that you can't have New Zealand's housing market collapse.

This wouldn't just lower inflation, it would destroy the economy.

[Jeffa]

Definitely oversupply in parts of Wellington and Auckland, first time in 7 or 8 years I haven't increased rent in these properties to keep these properties occupied.

(Still heavily cashflow positive though)

This is all deflationary, so should help lower rates longer term.

Housing shortage? What housing shortage?

[Jeffa]

Definitely oversupply in parts of Wellington and Auckland, first time in 7 or 8 years I haven't increased rent in these properties to keep these properties occupied.

(Still heavily cashflow positive though)

This is all deflationary, so should help lower rates longer term.

[Frezzinghot]

Or only good tenants are housed and the rest are just making up numbers. Bad tenants.

[artemis]

Not sure about an oversupply of rentals in general, maybe in some areas for sure. Nationwide number of rentals on Trademe has consistently been the 9,000 - 10,000 range all year, but the number for homes for sale has increased month by month - and up around 70% this year. Currently close to 38,000 on Trademe and plenty will be rentals. Some rentals on the market will be empty, or termination notices issued.

[Jeffa]

Over supply of rentals with vendors putting there houses back in the rental pool until selling prices improve

Infllows of migrants is ramping up, so the rental market should tighten up for prospective tenants in the next 6 to 12 months

2023 should be the hardest year for many landlords, this will shake out the weak and 2024 onwards only the strong will remain to control a larger share of total wealth in NZ.

[donna]

The great Kiwi exodus! Professionals that would be renting have or plan to move offshore.

Plus maybe less moving around now they can stay put for as long as they like and the rentals are better maintained and with HH compliance.

cheers
Donna

[Frezzinghot]

Trying to find a new tenant for our rental and it’s proving difficult, many applicants are less than desirable, getting harder to find the best tenants nowadays!

anyone else finding this out? But it is nearly Xmas so maybe in the new year there will be a better selection.