This is the second study conducted by the Technical Working Group on Housing. The group includes representatives from the Treasury Te Tai Ōhanga, the Ministry of Housing and Urban Development Te Tūāpapa Kura Kāinga, and the Reserve Bank of New Zealand Te Pūtea Matua. Today they published a paper titled What’s driving rents in New Zealand/national and regional analysis.

The group has undertaken work to better understand the drivers of rents, improve the accuracy of rental prices and house price forecasts, and identify regional hotspots. This work is expected to influence future policy development.

The study identified the following as the main causes of rent inflation:

• Supply and demand for housing – a 1 percent increase in the average number of people in each house leads to a 1.5 percent increase in rents at the national level;
• Wages – increase in nominal wage rates – a 1 percent increase in nominal wages leads to a 1 percent increase in rents;
• Mortgage interest rates and employment have an impact, but much smaller.

The study also shows that local factors also play a role, leading to proportional rent increases in some regions.

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Auckland

Auckland is the largest city in New Zealand and the cultural center of the country. Here you’ll find a wide range of accommodation, from stylish apartments in the city center to spacious homes in the suburbs. Auckland also offers a variety of cafes, restaurants and stores, as well as beautiful beaches and parks for outdoor activities.

Wellington

Wellington, the capital of New Zealand, is known for its picturesque location between the hills and the bay. The city is famous for its cultural scene, cafes and high-end restaurants. You’ll find a variety of accommodation here, from apartments in the city center to cozy homes in the suburbs.

Christchurch

Christchurch, located on the South Island, is the region’s center of culture and entertainment. The city offers a variety of accommodation, including modern apartments in the center and spacious homes on the outskirts. You will also find a variety of parks, gardens and cultural activities here.

Queenstown

Queenstown is renowned for its spectacular mountain scenery and outdoor activities. This South Island town attracts tourists and residents alike with its beautiful views and friendly atmosphere. You’ll find a variety of accommodations here, from cozy apartments to luxury homes with lake and mountain views.

Hamilton

Hamilton, located on the North Island, is a picturesque town with beautiful parks, gardens and the Waikato River. The city offers a variety of housing, including apartments in the center and spacious homes in the suburbs. Hamilton is also famous for its universities and cultural events.

No matter which city you choose for your New Zealand vacation rentals, you are sure to find a place that suits your needs and preferences. I hope this article helps you make the right choice and enjoy your new home in this beautiful country!

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Furnished property for rent

It is harder to find furnished properties for rent as they are not common in New Zealand. A furnished one-bedroom will usually cost an average of NZ$380 per week, while a furnished two-bedroom property will cost NZ$500 per week. On average, a three-bedroom property costs NZ$600 per week and a four-bedroom property costs NZ$650 per week.

These properties usually include living/dining room furniture, kitchen appliances, and beds. It is important to be mindful of landlord-owned furniture, as you will have to pay a fee if there is damage.

Renting a property without furniture

As most rental properties in New Zealand are unfurnished, they will still include the necessary plumbing and accessories in the kitchen, bathroom, flooring, curtains or blinds. The cost of renting an unfurnished property is always cheaper than a furnished property.

The average rental price for one unfurnished bedroom is NZ$320 and NZ$420 per week for a two-bedroom property. Renting a three-bedroom property will cost approximately NZ$510 and NZ$640 per week for a four-bedroom property.

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Apartments

Apartments are one of the most popular rental housing options in New Zealand, especially in major cities such as Auckland, Wellington and Christchurch. They are usually in high-rise buildings in the city center or suburbs and offer amenities such as proximity to public transportation, shopping, and entertainment.

Houses

Rental homes are also popular in New Zealand, especially among families and those who prefer space and privacy. They can be either single-story or multi-story, with or without a private yard. Homes in the suburbs are often preferred by those looking for a quiet life, away from the hustle and bustle of the city.

Units

Units, or half of two-story homes, are also sought after for rent in New Zealand. They usually have separate entrances and their own plots of land or yards, making them an attractive option for those who value privacy but prefer more affordable options than full houses.

Studios and studio apartments

Studios and studio apartments are compact housing options that usually consist of one room with a separate bathroom and kitchen. They are ideal for singles, young professionals and those who prefer a no-frills space.

Cabins and cottages

Lodges and cottages, especially in rural areas and in nature, can offer a unique experience of living in New Zealand. These cozy homes are often preferred by tourists as well as those looking for temporary or seasonal accommodation.

The popularity of different types of New Zealand vacation rentals depends on many factors, including location, budget, and the needs of the renter. No matter what type of accommodation you choose, you are sure to find something suitable for you in New Zealand.

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Be prepared to spend at least 30% of your income on rent

Rents in New Zealand are usually quite high. Wellington has one of the highest rents in the country due to a rental shortage. The average rent is $527 per week.

The most expensive cities to rent are Wellington and Auckland. However, the pandemic has left Auckland’s city center sparsely populated due to fewer international students. It is now easier to find an affordable apartment in Auckland than in Wellington.

Christchurch has one of the most stable and affordable rental markets in New Zealand. The rebuilding after the earthquake has led to the emergence of new townhouses and apartments throughout the city.

If you are planning to move to a small city, you may find it difficult to find rental accommodation. If you are planning to move to New Zealand for the long term, it can be helpful to have a plan on how to climb the real estate ladder. Renting in New Zealand provides less security for tenants than in other countries, and the average lease term is only two years.

You will need to pay a deposit before you rent a property

When you find the perfect rental, you will need to pay a deposit before you can rent the property. A security deposit is the only payment a landlord or property manager can charge you to secure a property. Your landlord or property manager will make the payment to the rental service. Your security deposit is returned to you after you pass the final inspection at the end of your tenancy.

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It is advisable to book your first accommodation before you arrive in the country. This will relieve you of unnecessary worry and uncertainty, and will likely save you money. There are a lot of students, temporary workers and tourists coming to the country all the time, so it is difficult to find good accommodation at the last moment.

Flatmate is a joint tenancy. It is an option for those who want to reduce the cost of rent but still have all the benefits of living in their own home. It is a great way to make new friends and improve your English. Shared renting allows students (and not only) to live in an apartment in the city center (CBD) or in a nice house at an affordable price. It is not uncommon for couples or even small families to rent a place together. It all comes down to the size of the apartment and your wishes regarding the necessary size of your own space in it. On the one hand, this option reduces rental costs, which allows you to rent a really good and comfortable housing for reasonable money, on the other hand, requires a high level of loyalty and friendliness to roommates, so it is better to make sure in advance that the lifestyle of future neighbors do not contradict each other and get along will be easy.

There are two options for concluding a lease agreement. It is possible to rent a place together at once, in which case the rental contract will include all tenants on equal rights and with equal responsibility. It is possible to rent housing for one person and surplus space to rent under a sublease agreement, but this option will need to be agreed with the owner of the housing. The main tenant will have to bear all responsibility for the housing and timely payment of rent to the property owner.

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Make sure you learn about the rights and responsibilities of the landlord and tenant so you both know what you should do. You can find this information on the Tenancy Services website and in the booklet Tenancy and You (available in 15 languages).

Talking to your landlord

Have a realistic idea of what you want to achieve.
Be prepared to make small changes if necessary so that you can both reach an agreement.
Express your views clearly.
Listen to what the other person has to say.
Try to understand their point of view and make sure you understand their concerns.

If you come to an agreement:

• write down what you both agreed on, then sign and date it;
• arrange to meet again to check in on how things are going.

If you can’t reach an agreement

If you cannot reach an agreement, you can send your landlord a Notice to Remedy. This is a letter with a formal request to the landlord. You can find a template on the Tenancy Services website.

If a formal request does not resolve the problem, Tenancy Services offers a quick fix or mediation. Or you can apply for a hearing at the Tenancy Tribunal.

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The advantage of a flat is that you can live with people who know the area and you don’t have to buy all the furniture and appliances yourself.

People looking for roommates usually post ads on TradeMe in the “Roommates Wanted” section.

Fixing costs

When you take up an apartment, you are actually renting a room. The cost of a room can vary widely. It depends on the type of property, the size of the room offered, and the location.

You will also have to pay for electricity and food. In some apartments, everyone shares meals and buys groceries. In others, everyone buys and cooks their own food. The cost of things like electricity is shared between roommates.

If you are moving into an apartment, you should agree on rent, food, electricity bills, and notice periods before you move in. You may find it helpful to have these agreements in writing and keep receipts for any payments you make.

On the Tenancy Services website, you will find advice on cohabitation agreements and other issues to consider when sharing a home.

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If you fall behind on your rent

If you fall behind on your rent, landlords still have to fulfill their maintenance responsibilities and they must follow the correct process to end the lease.

If you live with other tenants, you are all responsible for paying the past due rent, even if only one tenant is not paying properly.

If you live with people whose names are not on the lease, they are classified as “roommates”. The tenant named in the lease is responsible for paying the full rent to the landlord. The roommates must pay their share to the named tenant so that they can pass it on to the landlord.

Advance rent and security deposits

When you rent a property for the first time, you may be required to pay the rent in advance and a security deposit. This way, your total first payment can reach 5 or 6 weeks’ rent.

The landlord can ask for rent only 1 or 2 weeks in advance, depending on whether you will pay the rent weekly or biweekly (every 2 weeks).
The deposit can be up to 4 weeks of rent. The landlord must give you a receipt for the security deposit and submit it to the Rent Office within 23 days. The Rental Service will hold your money as a security deposit until the end of the rental period. You will get your security deposit back if you leave the property in good condition.

Option fee

If you’re not sure whether to rent a property or not, the landlord may ask you for an “option fee” to hold the property until you decide.

The fee cannot exceed 1 week’s rent.
If you agree to the lease, your landlord must refund the option fee to you or include it in your rent.

Rent and key money

Landlords and their agents (e.g., real estate agents, solicitors) cannot charge you a fee (money other than rent or a deposit) for giving you a tenancy or making changes to your tenancy. These fees are called rental fees and key money.

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When determining your budget, it is a good idea to get an average for the city or region you are considering so that you know roughly how much you will have to pay for rent.

You will then determine what you can afford, taking into account your other living expenses as well as the rent with your income. The costs in the beginning will probably exceed your savings. You usually pay a security deposit before you move in, usually four weeks’ rent and in most cases also a couple of weeks’ rent in advance.

Searching for properties

Our advice when using Trade Me Property to find a rental is to be smart with our filters. You’ll save a lot of time looking at listings that don’t suit you by making your search as precise as possible.

On Trade Me Property, you can filter:

• Location (and suburbs, if applicable);
• The amount of rent you want to pay per week;
• How many bedrooms and bathrooms you need;
• Type of property;
• Any other keywords (near schools).

Visit some property reviews

With this short list in mind, it’s time to get out and see some properties.

Under the agent’s details on the right, you’ll see a blue button that you can use to book a viewing or send the contact an email. Make a note of the viewings you book: double booking yourself and having to cancel or worse, a ghost, agent or landlord will not start a positive relationship.

Make an application for the property

When you find a rental property that you really like, you will need to apply for it. To do this, you need to fill out a rental application form, which you can get from the landlord or agent. These are usually very simple documents that will require basic information such as:

• Your name and contact information;
• Your current address and previous rental history;
• Authorization for the landlord to run a credit check;
• References they can contact.

Sign the contract and do a move-in inspection

Yay, the landlord has chosen you, it’s time to sign the lease. Be sure to read it carefully before signing it – these documents are legally binding, so ask for help if there is anything you don’t understand.

The lease agreement must be in writing, but it is important to understand that the Residential Tenancy Law will still apply even if you do not have a formal written agreement. This means that both you and the landlord will still have responsibilities that you will need to fulfill.

Pay the security deposit

You will need to pay a deposit before you move into the property. This can be four weeks’ rent and will be held by the Rent Service. It will be used if the landlord needs to cover costs such as:

• Unpaid rent;
• Lawsuits related to the tenancy;
• Damage to the property;
• Unpaid bills.

Moving expenses

You have overcome the last hurdle and you have reached move-in day! Be an honest tenant, be able to communicate if there are any problems in the house, pay your rent on time, and you will enjoy your stay in your first rental home. Make it yours (within reason), relax and enjoy!

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