House attracts almost 100 enquiries in 48 hours as desperate renters compete

Monday, 2 May 2022

Rentals in Tauranga and the wider Bay of Plenty are in high demand.

A three-bedroomed house in the Bay of Plenty listed at $600 per week received 95 enquiries in just two days, revealing further signs of a rental crisis in the region as demand for houses continues drive up prices and competition among prospective tenants.

The most popular rental property on Trade Me in the Bay of Plenty last month was a three-bedroomed house on Dickson Road, Pāpāmoa Beach. The $600-per-week rental received 95 enquiries in its first 48 hours on the site, said Trade Me Property sales director Gavin Lloyd.

Another property currently for rent on the site – a two bedroomed unfurnished unit – has already received 143 enquiries in a week.

Tenant advocates say renters living in poor quality houses are not using the Tenancy Tribunal because they're afraid of landlords kicking them out. (Video first published in July 2018)

“Demand is still outstripping supply in the region and putting pressure on the market, resulting in growing rents,” said Lloyd. “It’s certainly not an easy time to be a renter.”

* Rents rise in all regions, hitting new record highs in some areas, Trade Me says

A two-bedroomed unit in Tauranga is currently attracting a large number of enquiries on Trade Me

* Demand 'unusually strong' as tenants slog it out in rental market

Rentals are in such short supply that prospective tenants are resorting to posting photos and descriptions of themselves on social media.

Lania Lopez told Stuff that she was applying for more than 10 properties a day in her search for a three-bedroomed house, but was receiving very little correspondence in reply.

This two-bedroomed unit in Matua is also receiving a high level of interest.

“It’s extremely hard,” she said. “We were competing with so many people. The fact we had to try and outshine 60-plus families per home we applied for was a strange feeling.”

Lopez said she posted everywhere she could think of on social media and contacted multiple agencies, but in the end had to move out of Tauranga and now has a 40-minute commute to work.

“We chose to look outside of Tauranga and the Pāpāmoa area because it felt like prices were increasing by the day,” she said.

“I think landlords and agencies know the desperation and the high need for rentals, and they can increase the price and people will pay for the basic need of housing.”

Donna Scott says she applied for more than 50 houses in a six-month search to find a rental for herself and her two teenagers. In her desperation she moved into a temporary apartment.

“It is only one-and-a-half bedrooms,” she says, “so it is a squeeze. Even then I have to pay $620 a week.”

Janine Evans of Evans Property Management says they get “many phone calls per week” from would-be tenants feeling desperate.

Scott said the competition for long-term rentals is tough.

“I had excellent references and could show that I was able to pay the rent, but it is hard as there are so many people going after the same house.”

Tauranga mum Evan Newport has been looking for a two-bedroomed property for herself and her nine-month-old baby for more than a year, and has been living in local holiday parks. She is now renting a cabin.

“We’ve been to multiple house viewings but still haven’t had any luck,” she said.

“I’m worthy and pay rent consistently. We are over-staying, in and out of random places. Everything I do is all for the benefit of my baby. I just want a stable, warm, healthy home.”

Trade Me Property sales director Gavin Lloyd says the huge house price growth can’t continue forever.

Newport says rentals in Tauranga have become so expensive that she has now started looking in Rotorua.

“I’m looking at a three-bedroomed house in Rotorua next week at around $400 a week. You can’t even get a two-bedroom unit for that in Tauranga.”

Janine Evans, of Evans Property Management in Tauranga, said tenants can make themselves stand out by treating the process like a job interview,

“Put yourself out there and communicate well, showing up to view the property and follow it up the next day,” said Evans. “It’s tough out there as properties are limited, but try to stay on your A game, keep going, and it will happen.”

She said she understands tenants’ frustrations when there are a limited supply of properties and multiple applications for the same house.

“We always reply to each person if they are not successful and tell them it was nothing wrong with their application, it is usually just the sheer number of applicants,” said Evans. “You can tell some are just exhausted in their search and I really sympathise with their situation.”

Stuff recently reported that some landlords are asking for $1000 a week – a record in the region. Dan Lusby, owner of Tauranga Rentals, rented out a three-bedroomed property in Maungatapu for $1000 per week last month, which he said was a first for him at that price for a normal long-term let.

In March the median weekly rent in the Bay of Plenty region broke into the $600 bracket for the first time, according to Trade Me’s March Rental Price Index.

The all-time high in the region marked a nine per cent increase when compared with March 2021, when the median stood at $550. In the Tauranga district, the median weekly rent was $620 in March, marking a year-on-year increase of four per cent.

Abby Blain, business development manager at Property Brokers, said the strong demand has been compounded by a steady decline in rental stock as many landlords have sold up, leading to

”a chronic shortage in supply”.

'Rents have been increasing at an alarming rate, and currently we have no stock available,” said Blain. “But we are constantly contacted by prospective tenants, desperate to find accommodation.

“The median rent in January 2022 for the region was $550, and this is an increase of $65 from the same period for 2021. This is an increase of 13.4 per cent. It is challenging and sometimes heartbreaking trying to source properties for tenants, some of whom are desperate.'

Blain added she believed more rental properties could be available later in the year due to people deciding to become landlords rather than sell their property.

'Some vendors we talk to are weighing up whether to rent out their properties instead of selling them as we see a slowdown in the residential market,” she said.