Average rent close to $300pw

Anna and her partner William have been looking for a rental in Papamoa. Anna is pictured with 20-month-old daughter Shykia. Photo/George Novak

Rents are on the rise in the Western Bay of Plenty hitting tenants in the pocket, but providing relief for landlords faced with trying to cover their increasing costs.

Data released from the Ministry of Business, Innovation and Employment shows the average weekly rent in the Western Bay, including Tauranga, rose 2.4 per cent to almost $298 for the three months to April, compared with the same time last year.

The number of new bonds lodged in the region jumped 29 per cent to 1502 year-on-year, with a total of 15,653 active bonds as of April 30.

Tauranga Rentals owner Dan Lusby said rent had increased for homes of all sizes throughout Tauranga last month.

"For May this year compared to May last year there was about a 7 per cent increase in rents. It's been static for a long time - probably the three years before that we weren't seeing anything at all," he said. "I think the Auckland influence helps. We have a lot more people heading out of Auckland, coming to Tauranga."

Many of those people were renting while they had a new home built, Mr Lusby said.

The recent rent increases came as a relief to some landlords who had struggled to cover increasing rates bills and interest rates for the last few years despite his effort to increase rents at least once a year to keep up with the market rates, Mr Lusby said.

Properties were being rented out within a reasonable time but there remained plenty of rental properties available to be tenanted, he said.

"We've let more, but we have enough supply for more. There's just over 300 available on TradeMe. Last winter we got up to almost 600. There's a lot less available, but they are turning over better," Mr Lusby said.

Be Home Realty Bay of Plenty property manager Josh Fitzgibbon said local rents had increased by about $20 "across the board" in the past year.

"A lot of people out there are in a good rental so they would prefer to stay where they are rather than go out there [and] pay more for possibly less and compete with a dozen other people who want the same property and are in the same position."

Last week's interest rates hike would load a lot more costs on to property owners, usually recouped through raised rents when there was a change of tenants, Mr Fitzgibbon said.

"In some instances we're increasing the rent by $30 to $40 a week and we're not having a problem in renting."

Anna and her partner William have been looking for a rental property in Papamoa for them and their 20-month-old daughter Shykia for about a month with no success.

"We've had about two declines. I'm looking every day," Anna said.

The couple were looking for a three-bedroom house in Papamoa or Bayfair and could pay up to $310 per week.

Having pets made it more difficult to find a house, she said.