What rental property is in demand

Posted on Thursday, July 4 2013

Dunedin Rental Property

 

As we come out of the peak Rental Property letting season it is an interesting time to begin to review what kind of property has been popular. Although the main statistics are not yet out, so a full review is not yet possible, it appears that the world wide trend for people to live in smaller household units is also hitting New Zealand. As more and more people choose to have smaller families or no kids and the general population gets older we are finding that large homes, especially on big sections are not proving as popular as they once were.

Property Management, Dunedin wide and nationally, is a rapidly changing business at times and noting and reacting to these kinds of changes in trends can be the difference between hassle free property investing and constantly fire fighting problems. This year has seen a number of properties, in all sectors of the market, student and residential, struggle for the first time in many years. The gut feeling being that this year may have seen an oversupply of bigger, 4-5 bedroom properties as some reasonable properties in good locations have stuck or remain unrented or heavily discounted. This is even on properties that have had almost full occupancy for close to 20years.

So what to do, if you have had a property sitting vacant a bit longer this year or even still vacant? If you haven’t already adjusted the price and the advertising to freshen the ad, ‘losing’ a bedroom but gaining a 2nd living space can sometimes be all it needs to get some activity on a sticky property. Now is the time to bite the bullet and get it rented through the winter and maybe take a short term lease. The other benefit of this is it gives you some time to plan what if any renovations could help remove the problem for next season and the work could this way be done so the property is finished in time for next years peak season.

If you are not experienced in renovations speak to your property manager, they will either be able to help with work in house or have contacts to be able to out source this work. Also if they are a respected firm some of the deals they get should mean you may not be paying much if anymore for them to arrange everything for you due to there bulk buying and on going work relationships with the local trades and suppliers, you may well even pay less than you would of if you had done it yourself.

The other option may be to change the mix of your portfolio, sell an under performing or out of style building and change it for a more popular one. Rather than selling it may be possible to redevelop an existing site and change a building you have to provide the type of accommodation that the market is now requesting in that area. Both of these options need a lot more planning and information to make this level of decision. So again getting the property rented at whatever level necessary whilst gathering all the necessary information should be high on your list of priorities.

Again your Dunedin property management team should have the experience and access to information to help you make these decisions, so keep them in the loop with your thoughts and use their knowledge and contacts where you can.

Tania and Kyle Elmer
Directors
Mana Property Management Ltd

www.ManaProperty.co.nz

Dunedin Property Management Company

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Expert's Bio

Tania & Kyle Elmer

Tania & Kyle Elmer are active investors with a large portfolio of properties in Dunedin and Central Otago and mentor investors in the techniques used to grow wealth through property investing. Kyle and Tania are Co-directors of the Leading Property Mangers of New Zealand (LPMNZ). Kyle is a past president of the Otago Property Investors Association (OPIA). They founded Mana Property Management Ltd to provide specialist management services to Discerning Landlords dealing in the quality end of the market. www.ManaProperty.co.nz | Find Kyle on Google+

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