Finding a rental is harder in Auckland than rest of NZ

Survey of tenants and landlords highlights frustrations within rental market.

OneRoof12 Dec 2018

Finding a rental is harder in Auckland than rest of NZ

It is harder to find a rental property in Auckland than in the rest of the country, new research suggests.

A survey of tenants and landlords carried out by AA insurance lays bare the challenge of renting in the country's biggest city, with Auckland renters more likely to seek longer tenancies and have left their last rental because of rising rents than tenants outside the city.

According to the survey results, the share of tenants who were able to find a rental property in two weeks or less was higher outside of Auckland than in Auckland - 43 percent compared to 35 percent.

And despite recent headlines pointing to a shortage of rental properties in Wellington, the survey found no significant differences for tenants in the capital compared to the rest of the country.

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Those renting in Auckland also tend to stay longer in rental accommodation than those outside of the city. Sixty-one percent of Auckland respondents recorded an average stay of 1-4 years in a single rental property compared to 52 percent for the rest of New Zealand.

The survey found significant disparities between Auckland and the rest of New Zealand when it came to why tenants moved on from their last rental property.

Nationally, the most common reasons given were that the tenant moved away from the area (21 percent) or the landlord had sold the property (16 percent).

However, more Aucklanders reported moving on because the rent became too expensive (11 percent compared to 6 percent for the rest of New Zealand) or the landlord had asked them to leave (6 percent versus 2 percent for the rest of New Zealand).

The survey also found that Auckland landlords were less likely than those outside the city to find tenants in the first week of letting their property. Moving away and home purchase are the most cited reasons landlords give as to why their tenants leave.

Significantly, a greater share of Auckland landlords reported that their tenants moved on because they needed a bigger place (21 percent compared to 11 percent for the rest of New Zealand).

OneRoof editor Owen Vaughan said: "It's likely that the demand for bigger sized properties will increase in Auckland, to accommodate the growing number of families that can't yet afford to buy."

The survey also highlighted frustrations within the rental market, particularly around property maintenance. About 40 percent of tenants said their landlord had failed to fix something when asked or maintain the property to a good standard, while a similar number of landlords reported that their tenants had damaged their property or failed to keep it in good condition.

Among the other findings from the survey were:

• 31 percent of tenants experienced landlords turning up without notice;

• 8 percent of tenants experienced landlords refusing to return the bond without good reason;

• 14 percent of landlords experienced tenants damaging the property maliciously;

• 19 percent of landlords experienced tenants moving out without paying.

AA Insurance spokesman Aaron Dickinson said the survey results illustrated the level of concern felt by both tenants and landlords. "Fundamentally both sides want rental property arrangements to be fair. The challenge is finding the balance of rights and responsibilities that is fair to both parties," he said.

"It's worth noting that we asked both parties if they had ever experienced these issues in their time as landlords or renters, so people have reported issues. While we can’t see the frequency of these issues, it’s interesting to note that over 50 percent of respondents reported that they hadn’t had any."

He added: "We asked both parties what checks they do before choosing a tenant or choosing a property, and the responses showed that Kiwis are being vigilant and following processes to make sure that the tenancy goes well for both parties. In particular, the tenants’ responses showed awareness around the importance of a safe, dry, healthy home, with 67 percent checking the heating and insulation and 70 percent checking for dampness and mould. Interestingly, 75 percent of those in the 18–29 age group made this check.

"It was also positive to see that most tenants move out of a property because of a change to their lifestyle, such as moving away, upsizing, or buying their own home."