Fewer people viewing properties for rent is forcing some landlords to drop their asking rents
Auckland largest residential rental agency says landlords are coming under pressure to reduce rents.
Barfoot & Thompson, which manages more than 17,500 residential rental properties on behalf of landlords, says there has not been the usual spring lift in the number of prospective tenants looking for a rental property that often occurs around this time of year.
“There were around 1500 fewer enquiries about available listings in September compared to August (down 6.4%), leading to fewer groups viewing properties (-4.8%) and fewer applications (-4.1%),” Barfoot & Thompson said in their Monthly Rental Update for September.
“A total of 593 properties were rented in September, 4.8% below the three month average and the agency ended the month with 830 properties available to rent, 2.2% more than the same time last year,” the Update said.
Barfoot & Thompson’s General Manager Property Management Anil Anna said consistently lower levels of renter activity over the past year had created a highly competitive environment for landlords, prompting many to hold and in some cases reduce rents to retain existing tenants or attract new ones.
“With so much choice available and fewer people looking, property owners are under pressure to be more competitive on price and presentation,” Anna said.
“Our managers tell us interested tenants are making very cautious and considered decisions about their next move and price [rent] is a major factor in the current economic environment,” he said.
