There has been a lot of discussion recently about the flattening off of rent levels across Auckland, and although through the winter months the market is traditionally very quiet, rent levels remain strong.
Fixed term rental agreements offer great security for both the tenant and the landlord, however when they are to be renewed or end over the winter months it can be a headache. Over winter there are far fewer tenants looking for houses, so rent levels are reduced to compete with the reduced demand. And if you are renewing the tenancy agreement annually this will be an ongoing issue.
My advice for fixed agreements;
- Try and have fixed term agreements roll over during the peak season – any time from September through to March
- If your agreement ends during the low season, when you renew it, consider renewing it for 18 months rather than 12 months.
- Be honest with the tenants – it’s easier for them to look for a new home when the market is stronger as well.
- Although it is important to evaluate your rent level and rent increases, it is invaluable to have good, reliable tenants who take great care of your investment.
At Abode Property Management, we offer free rent appraisals across Auckland.
Contact Leigh on 021 207 1884 if you would like to discuss your property.