'Heart breaking' Bay of Plenty renters struggle to find homes as prices hit new record

Rents have jumped in Tauranga and Rotorua while supply continues to outstrip demand. Photos / File

''Heartbreaking'' and ''tear-jerking'' is how some agencies have described the plight of many renters who need a home.

The news follows reports rents in the Bay of Plenty have hit a new record with experts warning demand for property will only increase in 2021.

Data from Trade Me reveals the median weekly rent in Tauranga in November jumped to $560, a 7 per cent increase on the same month last year. In Rotorua over the same timeframe, the median rent was $450 compared to $440.

Tauranga Rentals owner Dan Lusby. Photo / File

Tauranga Rentals owner Dan Lusby said the renting situation in the city was dire and he could not see it improving next year.

The company had three houses for rent but those would be gone by tomorrow as it had an ever-growing waiting list.

Some houses did not even make it to the market due to the line up of good candidates.

Lusby said returning expats and houses not being built fast enough were contributing to the supply and demand issue.

Meanwhile, his properly managers were constantly dealing with desperate people who had ''heartbreaking'' stories.

''We have always been social workers and budget advisers for a long time ... that is just part of our job. It can be very stressful for our property managers. Some people come in and tell you their whole story and unfortunately, we can't accommodate a lot of them.''

''It's really sad and tear-jerking.''

A four-bedroom house in Tauranga in a good location could fetch $700 while Lusby had seen others advertised at more than $800.

Rotorua Rentals director Pauline Evans said some desperate tenants became abusive when they could not find them a home.

Rotorua Rentals director Pauline Evans. Photo / File

''They do upset us when we are powerless to help, especially those with young children if they have poor credit, high debts, bad attitude and previous tribunal orders against them, they will struggle anywhere.''

''We just cannot help every deserving applicant, and we do get abused for that.''

Rents had continued to increase due to demand for good rental homes.

''It can be very stressful for applicants – and frustrating for us too.''

A four-bedroom house in Rotorua could now easily start at $550 per week compared to two years ago when it would have rented for $400 plus.

''As an industry, we do worry about soaring rents, we simply do not know how much higher rents can go or where it will stop.''

Simon Anderson, managing director of the Realty Group Ltd, which operates Eves and Bayleys. Photo / File

Simon Anderson, managing director of the Realty Group Ltd, which operates Eves and Bayleys, said the Bay of Plenty was facing a rental shortage.

''If you are in a rental property now I'd suggest you look after it and look after your landlord because if you move from there is might be quite difficult to get somewhere else.''

Anderson said landlords wanted a tenant who cared for the property as they wanted their investment to be protected.

It was not unusual for a house in Tauranga to attract 40 quality applicants but the company had noticed landlords were also being responsible around rental adjustments and not taking the greedy approach.

He could not see demand levelling off in 2021.

Rotorua Budget Advisory Service manager Pakanui Tuhura said between 70 and 85 per cent of its clients were in rental accommodation and many were struggling to pay.

Rotorua Budget Advisory Service manager Pakanui Tuhura. Photo / File

''Clients are having to make harder choices. Accommodation is a basic need so high rentals mean less money to cover the other essentials such as food and power and having to reprioritise and make decisions about nonessential items.

''In a few cases, those choices are now between necessities as household income is outstripped by household costs.''

Anger, grief, denial were some of the emotions expressed by clients.

However, Tuhura said when they left they usually felt better and more in control due to a plan being put in place.

A Salvation Army spokeswoman said it was seeing an increase in stress and anxiety this year.

Its State of our Communities report, released in September, Rotorua residents talked about the average income in the area not matching the housing prices.

''Therefore, finding suitable and affordable housing is a luxury for the average person,'' the report said.

Trade Me Property spokesman Logan Mudge said the Bay of Plenty had a stand-out month in November, with the median weekly rent reaching a new record of $535.

''No other region saw rents reach a new all-time high last month. We're seeing rental prices increase across the board as a result of increasing demand and low supply on the market.''