Rent in NZ

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August 11, 2003 - 11:51 am
Hi all,
I have been doing alot of work on properties in NZ.. and found an excellent property that had very good +ve cashflow.
When I called the agent to enquire and asked how long it has been tenanted, she was surprised that I asked if it was a 1 year or 6 months lease and said that it was just rented and the tenants can leave at any time they want providing they give a 3 weeks notice.
Is this practice the norm at NZ? .. can mini or anyone with properties in NZ give more insight into the renting trends over there
Thanks a million
Johnny
RentMaster
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@rentmaster
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August 11, 2003 - 8:36 pm
Yip – thats the norm.
I think the majority of all leases in NZ are for a non-fixed term. In all my years of renting I have never set up a fixed term lease, and neither has anyone else I know. It is an option for us if we choose to use it, but for some reason we just dont do it. Do you aussies always do fixed term?
Andrew
http://www.rentmaster.co.nz
Marketmad
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August 12, 2003 - 1:48 am
in most main cities of Oz it is common place to organise a 6 or 12mnth lease, not sure about reginal towns though..
quote]
Yip – thats the norm.
I think the majority of all leases in NZ are for a non-fixed term. In all my years of renting I have never set up a fixed term lease, and neither has anyone else I know. It is an option for us if we choose to use it, but for some reason we just dont do it. Do you aussies always do fixed term?
Andrew
http://www.rentmaster.co.nz
[/quote]
aussierogue
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August 12, 2003 - 5:05 am
rentmaster
thanks for the pointer
im looking at nz at the moment and didnt realise
there were few fixed terms.
not sure how i feel abbout this from an investors point of view.
i would prefer to know ive got a tennant locked in for a time. makes it a little harder for them to move at a whim and guarantees your income a little
any idea if there is a trend from ows trying to lock in tennants for a fixed term??
is there any practical reason this wont work in nz?
cheers
RentMaster
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August 12, 2003 - 6:26 am
There is no reason at all why you cant do fixed terms.
I suppose it is just become the way we do it and (a bit like NZ sheep) everyone follows what the others are doing.
A question. When the term ends, what proportion of people pack up and leave now that they have the chance, and what proportion continue on? As property investors we want long term stable tenants. It would be interesting to know what the average tenancy term in NZ is compared to AU. Personally my tenants tend to hang around for 2 or 3 years anyway.
Andrew
http://www.rentmaster.co.nz
RentMaster
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August 12, 2003 - 6:29 am
By the way – in case anyone cares. I think commercial property is always fixed term over here.
Andrew
http://www.rentmaster.co.nz
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August 12, 2003 - 11:44 pm
Thanks for the info RentMaster, I would be a much happier investor if the tenants were signing a 6 months or 1 year leases.
You said we could still do it .. it just no one actually does it, how would we go about organising somthing like that, would it be through the Real Estate Agent ?
RentMaster
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August 13, 2003 - 1:32 am
Hi Jonny
There is a standard tenancy agreement form which is used in NZ. On this form you specify a fixed term where you specify an end date (does not have to be 6 or 12 months – could be 237 days if you wish).
If you want to have a look at the form it can be downloaded from the tenancy services web site at
http://www.tenancy.govt.nz/tenancy/Forms/MOH-res%20ten%20agree.pdf
The term is specified on page 2, 4th box down.
Andrew
http://www.rentmaster.co.nz
MiniMogul
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August 13, 2003 - 4:40 am
Hi all,
I think if you had a brand new desirable apartment in Auckland you could definitely request with the agent that you only wanted people who would sign a lease. I think that eventually NZ will go that way, investors will introduce it, people will get used to it, and it will eventually become the norm.
I don’t know if people are ready for it in the smaller towns though. It would be something to discuss with the rental agent.
My rental agents have endeavoured to choose long-term tenants for me (that for example say they want the house from 1-3 years) but apart from a bond and payment 1 month in advance, that’s about as good as it gets I believe.
Remember that a lease is still no guarantee that people are going to pay….and it might be not as easy to get them out if they are on a lease but don’t pay. Worth asking a lawyer about as well as a RE agent.
cheers-
Mini
PS
I’ve posted this before but have you guys seen this?
it’s market rent for NZ based on bonds lodged.
http://www.minhousing.govt.nz/tenancy/Market-Rent/market%20rent%20region.asp
balfour
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August 31, 2003 - 6:33 am
Student accomodation is Dunedin is always rented on a 12 month lease. Theere are 10 moths leases as well but there are at a highr rate and the return is the same as for a 12 month lease.
In the traditional student areas it is common for groups of student to be knocking on the doors of flats in september and october and asking if it is leased for the following year.
Veni Vidi Vici