Fewer listings put squeeze on rental market

Kelly Mead has been looking for new rentals for two weeks and has only secured one viewing. Photo / George Novak

The rental shortage is expected to get worse as properties are snapped up within a day and rents increasing about 5 per cent.

Tauranga resident Joelene Walker has been given notice that her current rental is going to be sold and has been looking for a new home for six weeks with no luck.

"I probably apply for at least two to three, maybe more, a day. I apply as soon as they come up and they are gone. I don't know how people get in to view them because they are always in the morning or at lunch. It's always during my work hours."

The situation was getting so dire the family of four were now talking to the bank about their options for buying.

Kelly Mead has been looking for a new rental home for her and her 12-year-old daughter for two weeks and has only been able to secure one viewing.

She is hoping to stay in Otumoetai to be near her daughter's school but said there had been no new small homes listed since she started searching.

"I rang all the agents and listed my details and no one's got back to me," she said. "I've been trawling through the websites a couple of times a day."

The pair are now living with friends until they find a house.

Tauranga Rentals owner Dan Lusby confirmed the market was still tough for those looking for a home to rent.

"Rents have definitely gone up 5 per cent in the last 12 months. Rents are still rising. We still have a shortage and there's still a demand," he said.

"We had a property over at the Mount ... we didn't realise how many people were going to turn up. Usually we ring a dozen and two or three turn up. We rang 10 and 10 turned up with their families.

"We listed a property at Papamoa and within 24 hours we're going to have it rented and we've had an inquiry about wanting to buy it."

Mr Lusby said he did not expect the situation to improve.

"If interest rates are coming down ... that will help first and second home buyers," Mr Lusby said. "It's going to make it harder and rents will just keep rising."

The influx of Aucklanders was contributing to the tough market, he said.

Rentals BOP manager Gary Prentice agreed there had definitely been a rent increase but it was less than 10 per cent.

"If it was $350 it's going to $360 or $370," he said.

He was trying to match up the best people for each available property rather than listing them publicly to prevent being inundated with enquires.

Realty Services chief executive Ross Stanway agreed there were not enough rental properties to satisfy demand, exacerbated by the number of people relocating to the area.

"I think it will continue for quite some time until rental stock or investment stock increase and that doesn't happen overnight," he said.

"Increase in weekly rentals being charged by landlords is definitely occurring and in some areas increases have averaged up to $30 per week."

Tauranga Harcourts general manager Nigel Martin said the situation had remained the same for about a year.

"Our portfolio has seen an increase in rental rates to keep up with what the market's prepared to pay. Rents are going up and I don't see that stopping any time soon."

LJ Hooker Tauranga franchise owner Neville Falconer agreed.

"Vacancies are really low. It's going to continue to be that way. There's just people coming in to this part of the country to live," he said.

"Rental rates have been increasing and probably what was $320 in October is probably $330 to $340 today."