Uno Property management team has increased rent by over $4000 in weekly rent in our portfolio in the last few months.
Some rent increased properties:
The increase level ranges anywhere from 4% to 50% while some property rents remain unchanged.
You may want to ask why that is the case.
Here are a few reasons for the discrepancies in rental increases:
- The CBD apartment market took a long hard dip since Covid all the way till the end of 2022, there is no surprise with the end of Covid and people coming into the country again, the CBD rental market starts to recover. Some apartments suffered long periods of vacancies and reduced rental in the last few years finally welcomed the recovery. The highest rental adjustment we had (for a new tenancy by the way) was 100%
- The overall rental market in Auckland has increased but not nearly to the same degree as the apartment market. We see townhouses, standalone homes units are going for a range of 3-10% increase generally speaking.
- By law, you can not increase rent on a tenancy more frequently than every 12 months. Say your tenant moved in at the end of 2022 when the rental market was not great, even though the current market rent is higher than what your tenants are paying, you are not allowed to increase their rent until after the 12 months period. That’s why some rents remain the same for now.
- There are certain types of properties that we simply can not increase the rent on tenants: flood impacted properties (still not fully remedied); properties in poor conditions, properties not meeting Healthy Homes Standards, and properties with major issues needing major repair and maintenance. It is inappropriate to increase rents on these types of properties.
I hope I have cleared a few things up.
If you have any questions, please contact us.