Publication: nc08022012

Landlords are taking advantage of higher rental turnover at the start of the year to increase rents, according to a property manager.

Steve Hall from Guardian First National Real Estate in Johnsonville says many fixed-term tenancies finish early in the year; meaning new tenants are often required. “We try and take advantage of tenant turnover by increasing the rent for new tenancies. We implement moderate increases where we can.  It’s harder to do when we have sitting tenants.”

Mr Hall says there is plenty of demand for rentals in Wellington. “The number of vacancies is slightly down on last year. In the area from Tawa to the south coast there are 1400 today, compared to 1500 at the same time last year.”

He says January is the liveliest month for rentals, with many people shifting for new jobs, while students also enter the market. 

Mr Hall says signing up new tenants is difficult. “The conversion rate of viewings and applications is not as solid as we would like. When people have a lot of choice they often have difficulty making up their minds.”

Meanwhile Lower Hutt-based Oxygen Property has reported a strong rental market. Chief executive Vesna Wells says January has been the strongest month its lettings team can remember.  “In Wellington, Oxygen has reported a record letting month and as with the Hutt Valley, February is already showing signs of being yet another very busy month.”

Ms Wells says good rental accommodation usually has a quick turn-around when vacancies occur.