South Auckland/Franklin rental properties - Any difficulties with keeping tenants?

[NESW]

Following on from a conversation I had this morning with a Pukekohe Agent, and my own experiences, it seems difficulty is being experienced in the South Auckland/Franklin area for keeping and/or attracting tenants to available homes, and rents are being slashed.

So I thought knowing some of you have properties in the general area, a poll might be in order if you would please to see if this is being experienced by others too.

If you have any thoughts or experiences as to why this is occuring (winter perhaps being a poor time to look at moving) I would appreciate your reply.

[Dean@Massiveaction]

I have a lot of property in Papakura. All full no problem with tenants.
In fact I would say the last 6 months has been the best occupancy ever.
Puke has always been dodgy in the gang parts.

[NESW]

Many thanks Dean for your thoughts.

I was in contact with another Agent this afternoon this time in Papakura, she said it was slow in Auckland city with a downturn in rental due to the economy, but didn't think she would have trouble with my property and is going to inspect.

I will continue to be interested in what others feedback might be for the general area, perhaps I will find a few answers for myself in the results.

[BusyLizzy]

One Mangere place has been tenanted for the last 18 months, the other for 2 years (same tenants).

I continue to put rents up in small increments.

(I can't vote in the poll as it won't accept 'blanks' for all 4 responses ie No's.)

[Dean@Massiveaction]

(I can't vote in the poll as it won't accept 'blanks' for all 4 responses ie No's.)

Same!!!!!!!!!!!!!!!!!!

[Heg]

One in Papakura tenanted 18 months and three in Manurewa -two for four years (We inherited the tenants) and one for just over a year. All pay good rent with regular small rent increases.

[NESW]

One Mangere place has been tenanted for the last 18 months, the other for 2 years (same tenants).

I continue to put rents up in small increments.

(I can't vote in the poll as it won't accept 'blanks' for all 4 responses ie No's.)

Der to me, wasn't thinking "the other side of the fence" aspect of the question.... sorry!

BL, is it possible for you to re-edit my poll giving yes/no options please? I cannot seem to find how to edit it myself...

[BusyLizzy]

Hi NESW,

No, I don't seem to have the 'powers' to do that. Actually, I think it's more a function of polls - once you set them up, they are locked down. (Otherwise the previous results become meaningless if you change the questions half way through).

Only option that I'm aware of is to start again..... let me know if you decide to do that and I can move the posts over and get rid of the original one. (It just means you would lose the 8 votes that have already been made.)

[NESW]

Hi NESW,

No, I don't seem to have the 'powers' to do that. Actually, I think it's more a function of polls - once you set them up, they are locked down. (Otherwise the previous results become meaningless if you change the questions half way through).

Only option that I'm aware of is to start again..... let me know if you decide to do that and I can move the posts over and get rid of the original one. (It just means you would lose the 8 votes that have already been made.)

many thanks for having a look at it BusyLizzy, I guess letting run for now is the best option, lesson learnt!

But if anyone wants to comment otherwise please feel free.

I am getting the feeling that perhaps my property is better off being marketed outside of Pukekohe. It seems from discussing my property the local agents have the problem, whereas the Papakura ones don't.

Look forward to everyone's thoughts... many thanks for the replies to date!

[younginvestor]

I have a couple in Papakura and my tenants are great, both have been there for just over 2 years and never missed rent etc etc etc. Unsure if there is an oversupply or under supply of rentals in the current market.

Both Pukekohe and Papakura have some great streets and some rough streets/areas, so I guess it would also depend where your rental/s were.

[NESW]

I have a couple in Papakura and my tenants are great, both have been there for just over 2 years and never missed rent etc etc etc. Unsure if there is an oversupply or under supply of rentals in the current market.

Both Pukekohe and Papakura have some great streets and some rough streets/areas, so I guess it would also depend where your rental/s were.

I have mine around the general franklin district all managed by the same agent, so for me its a general response I am seeking and to see if others are experiencing what I am hearing is happening there, although am aware that I am not in the rough part of Pukekohe... if that helps at all...

[makanlah]

Hi, I have a two-bedroom unit in Pukekohe that is managed by one of the big firms in the town.The current tenant has been there nearly two years. One thing I have noticed is that she came in paying what was then the higher end in rent, and that rents have fallen slightly since then, going by govt rental stats (so no opportunity to raise rent after the first year, has occured.). My unit is in a good handy location - what seems to have affected two-bedders like it seems to have been a new 'retirement village' sort of thing (very crowded) built nearby; developer seems to have trouble offloading it and so is renting some of them. Also, recently there have been quite a few high density developments close to town, ie where there was one house on a section, the trend has been to get sometimes up to four new ones (and double-storey at that) on the same site. Despite the crowded conditions,tenants go for them cos they are brand new.And squeezed developers are offering them at very attractive rents.
Hope this adds to the picture.

[NESW]

Many thanks for that thought Makanlah, I saw those over 55's come on the market extremely cheap recently, and I wondered if the development would end up being opened to "others" and thus potentially become a mini ghetto... fortunately I am not near there, but get your point re new V. older homes.

One of the things I found initially with my rentals in the Franklin area was a general reluctance in the agent/s putting the rent up unless the tenant was vacating.

I also find it frustrating that my renovated one is left untenanted at the cheaper end with the agent advertising pets and smokers, yet a house 2 doors up identical is tenanted out within 3 weeks back on the market for $30 per week more.... the only difference i can see is mine are managed by a PM, the other was on trademe as a private listing.

[makanlah]

Glad to be of help, NESW.
Re yr comment about PMs being reluctant to put up rentals for incumbent tenants....Over the years, I have found this too, in my Pukekohe dealings.
In my experience it is to do with frontline PMs becoming more pro-tenant than pro-landlord. I am overseas, they deal with the tenants face to face, and I guess there is a tendency to empathaise with that face they see. Three PMs that I can recall have gone this way over the years.
It is difficult for me, as they were good PMs in their own way in that they were always on to any maintenance issues that cropped up, and I have never (touch wood, touch head) had probs with bad tenant selection or payment probs.
However, when it came to raising rents, whereas I came at it from a pure business approach, given tenancy length/inflation/stats evidence/whtever, they were reluctant.
What I have found, is that if I have thought there is a good case for raising the rent, if I have dealt with their bosses higher up the food chain, then the rents do get raised. This has not happened thru me taking direct action, however, but in these circumstances: when frontline PMs happened to have left their jobs, their boss has filled in, and seen things more from a business point of view.
Ah well. Cheers.

[NESW]

Makanlah your post sounds like the path I am on. I too am away from NZ (although back in later this year) and I have experienced similar and get the feeling that distance does create a certain amount of "out of sight/out of mind" attitude.

Personally I don't think the senior management really care... my former (good) PM was shocked to hear of my experiences, and felt her former employer would be doing a lot more than they are to assist.