Some property investors are looking at securing long-term tenants. Photo / File
Some property investors are looking at securing long-term tenants. Photo / File
The coronavirus pandemic could force a change in the Bay of Plenty rental market as property investors now look to secure long-term tenants in the wake of border restrictions.
Tremains Rotorua sales manager Megan Davies said it was dealing with a "huge rush" of Airbnb and Bookabach owners wanting tofind both long and short-term tenants for their properties.
"We have fielded a number of calls in the past few days including one owner who has had to refund a substantial amount of pre-paid deposits," Davies said.
"I do feel there is significant stress amongst the Bookabach and Airbnb owners."
Davies believed it to be a situation where the Airbnb and Bookabach investment market had done very well at the expense of local tourism providers but now everyone was in a similar situation.
"Right now cancellations, and there are a lot, both international and domestic, are across the board. People are nervous about who has been in the accommodation immediately before them and also whether the rooms have been cleaned sufficiently.
"There are issues with this as most of the properties are fully furnished and, in general, the rental market is not so keen on fully furnished properties."
In contrast, Tremains Tauranga Waikato general manager Anton Jones said he had not heard of property owners making the move from Airbnb and Bookabach to the rental market but believed it to be a great idea.
"With tourist numbers decreasing it would make sense," Jones said.
"While the per night rate for Airbnbs and Bookabaches is higher than the long-term rental figure, if you balance it out with occupancy rates, the gap closes."
Tremains Tauranga Waikato general manager Anton Jones. Photo / File
He said there were a number of people wanting homes so if people decided to bring their properties to the rental market, filling them would not be difficult.
Tauranga Airbnb owner Charmaine Mavinkovich is keeping a close eye on travel restrictions before deciding whether to list with the long-term rental market.
"Two days ago I was looking at my options and right now I'm keeping a really close eye on what is happening with national and international travel before I decide whether to flip the house to the rental market or not," Mavinkovich said.
"I do have an insurance job waiting to be done that would making renting the property a bit of a hassle but, once completed, I will reassess things then."
Mavinkovich said that while Airbnb gave her a larger return than a full-time rental if she returned to the rental market then she would manage it herself.
Some Airbnb owners are putting their properties into the rental pool. Photo / File
She said she rented her Airbnb by the room as opposed to an entire house, similar to a backpackers, and believed Kiwis would continue to travel and fill the rooms.
"I think New Zealanders may use international travel restrictions to take the opportunity to see their own country."
Cynthia and Joe Kouwenhoven own three Airbnbs, two in Kawaha Point, and signed up to offer self-isolation accommodation earlier this week.
It soon became clear the niche market was closing up when the Government decided to close the borders to non-citizens and non-residents.
Joe Kouwenhoven said they had had a bad experience with damage in a long-term rental property in the past, so were now considering the short-term rental market or selling up.
"We've got three Airbnb sites. We've gone from basically 70 per cent through the year, down to zero. We've got no bookings now until Christmas.
"I'm not in a position now where I have to sell but if this craziness carries on for another six months, I will have to sell something."
Tauranga Property Investors Association president Juli Tolley said the demand for holiday accommodation had dropped dramatically and suddenly, compounded by the typical slowdown that began at this time of year.
"Some holiday rental owners are already looking to switch their properties from that sector to long-term rentals," Tolley said.
"I imagine that there will be some shift that continues this direction. Whether it has much impact on the rental shortage is another story. Many landlords are ... being far more diligent in their tenant processing as they are not willing to chance being stuck in a difficult landlord-tenant relationship.
"Now with the financial pressures that Covid-19 could bring, that could exacerbate the situation. With interest rates going down, we could see larger investors taking advantage of the opportunities that arise, so it could balance out. It is still early days and we can only speculate so far but something definitely to keep an eye on."
Hospitality New Zealand Bay of Plenty regional manager Alan Sciascia said there was a possibility people who had properties marketed as Bookabach or Airbnb would not be seeing the same level of bookings due to Covid-19.
He would not be surprised if property owners turned to the rental market.
"It is possible, it may even be likely, but I have yet to see moves being made."
