Signs rental property market turning in favour of tenants

There are signs the rental market is turning in the favour of tenants.

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The lack of tourists and international students means investors are turning to Airbnb accommodation into longer-term rentals. Source: 1 NEWS

Statistics New Zealand data shows rents fell across much of the country in May.

An Auckland property manager told 1 NEWS there are nearly triple the number of apartments available on TradeMe than there were at this time last year.

Ali Karambayev from OneCiti says renters are also able to negotiate discounts and variations to agreements, with some receiving drops of five to 10 per cent in rents.

“Prior (to Covid-19), negotiation was not even on the table, you’d say sorry, this is the rent, if you don’t like it, then try to find something cheaper,” he told 1 NEWS.

Infometrics economist Brad Olsen says it’s “very early signs” the rental market is starting to soften.

But he warns that many people who rent are also those who are going to feel the brunt of the looming recession.

Seventy per cent of hospitality workers are renters and 57 per cent of those in retail also rent, according to 2018 census data.

Mr Olsen says because they will struggle to pay rent, it may force landlords into making further reductions.

No international tourists or students also mean a glut in apartments and other properties in places like Auckland and Queenstown.

Mr Karambayev says that means he’s advising many landlords to rent their properties out long term, rather than risk short term options.