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Home / New Zealand

Rotorua rental shortage: 'It is getting worse'

Rotorua Daily Post
1 May, 2017 08:03 PM3 mins to read

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Rotorua's demand for rental properties is getting worse. Photo/file

Rotorua's demand for rental properties is getting worse. Photo/file

People struggling to find rentals are going through the whole range of emotions as they search for properties during the rental shortage.

While the latest Trade Me Property Rental Index showed the average weekly price of renting in Rotorua for March remained the same as last month, at $320 a week, agents say finding properties is a huge battle.

The average weekly price of one- and two-bedroom homes has remained at $250 a week but the costs for medium-sized homes (three- or four-bedroom) has jumped by $30 in the past month to $390.

LJ Hooker Rotorua principal Malcolm Forsyth said it was just as hard to find rentals, if not harder.

"Some people are running out of options.

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"You can see it in their face. They are frustrated, anxious, concerned, scared ... just a whole range of emotions."

Mr Forsyth said if he was given another 20 properties tomorrow "we'd let them and that would just be one day".

"Then there would be just as many the next day. Right now there is huge demand but that supply just is not there."

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He said last week across the company's entire portfolio for Rotorua, Tauranga and Taupo they were down to just 0.5 per cent vacancy levels.

"It was a record low for us. What it means is that properties are just not available."

Mr Forsyth said while there were some one- and two-bedroom properties available, three-bedroom homes were difficult to find and four bedrooms were almost non-existent.

He said people were getting frustrated after missing out "time after time after time".

"You can see they are coming and want to know what sort of a chance they have."

Professionals McDowell Real Estate business development manager Stephanie Trainer said there was still a huge shortage, especially in the three-bedroom-plus properties.

She said most of what they had available were bedsits or little flats and there was little in the way of family homes.

Ms Trainer said tenants were still struggling to appeal to prospective landlords.

"We are still getting the CV and the life stories with people trying to sell themselves."

She said most of the people looking for a rental had been looking for weeks or months.

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Because of the shortage in properties tenants were sometimes having to take properties which didn't meet their checklists completely, including taking properties in areas they might not really want to move to, or paying more than they wanted.

Simon Anderson, chief executive of Realty Services, which operates Eves and Bayleys, said compared with last month there was definitely a further tightening of supplies.

He said at the higher end there was big demand from transient professionals coming to Rotorua on contract work and looking for nicer homes.

"Our view is it certainly isn't getting any better. If anything it is getting worse."

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