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Home / Kapiti News

Renters vie for houses: Paying top dollar to rent in a tiny housing market

By CLOE WILLETTS
Kapiti News·
16 Mar, 2016 08:24 PM4 mins to read

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It is becoming increasingly harder for people to rent houses in Kapiti, due to a shortage of good quality rentals and increased rent prices.

Ray White Paraparaumu rental manager Bernice Cowley said the difficulty stemmed from several contributing factors, including the large influx of people involved with the MacKays to Peka Peka Expressway project and Transmission Gully to the coast.

"Once these roads are complete it's expected a lot more Wellingtonians will be moving up the coast for the change of lifestyle, while still being able to commute with ease to the city for work."

Rental prices had risen in Kapiti because of the simple equation of "increase in demand equals increase in price".

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"We see a lot of investors increasing their rent according to the demand, hoping to get the best return on their investment.

"And due to the shortage of rental properties, tenants are willing to pay top dollar for a home, some even trying to offer more than the asking price, which does not help the situation."

Statistics from Ministry of Business, Innovation and Employment showed that the average rent price for a three bedroom home in Paraparaumu and Raumati had increased from $350 in 2014 to $370 in 2015.

It also showed that the average rent price in Waikanae was $315 in 2014, which jumped to $350 in 2015.

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In July last year, TradeMeProperty reported that on a national scale, excluding Auckland, the average rental price for a three to four bedroom home was $395.

On Friday last week, according to the 80 available Kapiti rental properties listed on TradeMeProperty, the median rent price between Paekakariki and Waikanae was $410.

For the Otaki area, which has considerably lower rental prices, the average rent price was $290.

A 22-year-old Paraparaumu solo mother was one of many renters feeling the struggle, having been searching for a home since December last year.

She said as well as increased rent prices making life harder, her social position was keeping her at the bottom of the competition ladder.

Having viewed around 25 properties, but with up to 30 other people also viewing a single property, she was currently staying on a friend's couch with her two-year-old son.

"It's hard because nobody's giving me a chance," the long-term Kapiti local said.

"I'm getting judged."

She said some home owners had not accepted her application because they did not want a young child in the house.

"Another said there's a risk along the track because I might get a new partner they hadn't met. One lady said she knew I'd look after the house and be responsible, but wasn't going to offer it to me because she wasn't sure what my friends were like because of my age."

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The full-time mother said despite having an excellent reference from a previous property management agent, it was not helping her situation.

"It isn't fair because we are a family, even if it's just the two of us."

Harcourts business development manager Shahney Thomas agreed it was becoming tougher for renters, particularly those looking to rent for the first time.

She said tenants were selected who showed stability and had excellent references with other property management companies.

"I want to know that the people going into the property have a proven record of taking good care of their houses and paying rent on time. It's my job to protect our clients' investments."

Tenancy Services New Zealand had advice for people renting in today's market.

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"Get an agreement in writing with your landlord so you know what has been agreed to, keep receipts and know your rights and obligations as a tenant."

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