Landlords told hiking rents can backfire

Trade Me statistics showed an 8 per cent increase in November rent prices in Wairarapa - up from November 2013.

Wairarapa landlords have been warned by a real-estate expert to keep rent prices in check despite a thriving market or they may risk finding themselves "tenantless".

Trade Me statistics showed an 8 per cent increase in November rent prices - up from November 2013.

By region, the median asking price for a three to four bedroom home was $270 in Carterton, $275 in Masterton and $300 in South Wairarapa - a 20 per cent increase.

Property manager for LJ Hooker in Masterton, Chrissy Osborne, said there had been a surge in people looking to rent but landlords shouldn't be tempted to raise their prices too high.

"Most landlords are hoping to continue raising rental prices because rates and maintenance costs are going up. My advice to them is not to hike it up too much because otherwise they will price themselves out of the market then their houses will sit there untenanted.

"It is better to have a lower price and have someone renting your property than having it sitting there empty."

Ms Osborne said December to February was the busiest time of year with people wanting to move in the new year.

"This is always our busiest time of year. There has been a big influx of people moving to Masterton and people already living here are moving around in order to get their children into good schools. All the schools here are zones so people have to move to get their children in."

Rental prices are expected to remain stable throughout the holiday period, she said.

The Trade Me data showed the median November rental price for a small house in Wairarapa (1-2 bedrooms) was $230 while the rent price for a medium house (3-4 bedrooms) was $285, a 14 per cent increase from 2013.

Unit prices had also increased by 16 per cent and were recorded at $185 for the month of November.

Nationally, rental prices increased by 5.3 per cent last month, compared with November 2013.

The median rent price nationally was $400 per week in November, where it has hovered for the past several months.

The median rental price for a small house (1-2 bedrooms) was $320, up 8.5 per cent from the same time last year while it was $450 for a medium sized home (3-4 bedrooms), also up 9.8 per cent. Large houses (5+ bedrooms) increased by 8.3 per cent to $650.

Trade Me spokesman Nigel Jeffries said the median weekly rent had been "stuck in the mud" for four consecutive months.

"There's less price pressure on tenants and a healthy supply of properties for rent in many areas. Although the weekly rent is holding steady at $400 per week, the year-on-year increases are trending down."

- NZME.