Tauranga Rental Statistics
Rents in Tauranga have risen dramatically in the last 10 years with an average three bedroom house in an average location renting for $272 per week (MBIE Statistics) back in January 2008, in January 2018 the same house would rent for $465 per week, that’s a 70% increase or an average 5.5% increase every year for those 10 years with the largest increase happening in 2016.
Currently the average rent for a one bedroom dwelling is $303 per week, a two bedroom is $404 per week, a three bedroom is $477 per week and a four bedroom is $540 per week, on average about 350 houses are rented every month in Tauranga which is one months supply if you are guided by what is available on Trade Me.
Is your Rental Investment at Market Rent, there are some Investors who get worried about increasing rents, they are worried they might lose their good Tenants, the reality is there are more good Tenants than bad Tenants so it is in your best interest to keep to Market or at least within 5% of Market Rent as your cost increase every year, Council Rates, Insurances, Tradespeople Charges for maintenance, your running costs, travel, Accountants and so on
Our Company reviews our Rents informally every time we do our three monthly inspection in case there has been a dramatic change, and formally every six months. If we have to increase the Rent we would rather put it up by $10 to $20 every six months than $40 to $50 once a year
The Residential Tenancies Act 1986 – Part 2 s24
Rent increases
(1) The rent payable in respect of any tenancy may be increased by the landlord provided all of the following conditions are complied with:
(a) The landlord shall give the tenant notice in writing of the increase; and
(b) That notice shall specify the amount of the increased rent and the day upon which the increased rent shall become payable; and
(c) The day upon which the increased rent shall become payable shall be not less than 60 days after the date on which that notice is given; and
(d) The rent shall not be increased within 180 days after the date on which the last increase took effect; and
(e) In the case of a tenancy which is not subject to annual rent adjustment, the rent shall not be increased within 180 days after the date of the commencement of the tenancy; and (f) In the case of a tenancy which is subject to annual rent adjustment, no rent increase shall take effect—
(i) Less than 60 days after the notice required by paragraph (a) of this subsection is given; and
(ii) Other than on the specified date in any year or with effect on the next day on which any rent is to be paidwithin28 days after the specified date in any year; and
(g) A landlord under a fixed-term tenancy shall not increase the rent otherwise than as permitted by the agreement; and
(h) Where the Tribunal has made an order under section of this Act and that order is still in force, the rent shall not be increased to an amount in excess of the amount specified in the order.
If you would like to use our expertise in setting your Rents please contact Dan on
dan@taurangarentals.co.nz or phone 07 571 1025