Re-entering the rental market after a while

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MikeAqua

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#204971 25-Oct-2016 11:32

Interesting experience lately renting an apartment for working-week use. I haven't rented this millennium and gosh things have changed.

The market is so competitive. 90% of apartments are via letting agencies and those that aren't are often low-end or only viewable on weekends.

Several lots of prospective tenants attended every viewing with others waiting outside to view other apartments in the same complex. Creates a competitive atmosphere, which some people buy into and get a bit pointy elbowed, lol.

Every agency charges letting fees which are non-negotiable. Bonds are higher, scrutiny of tenants is intensive. I only provided about a fifth of the requested info. But got the place in the end.

I'm glad I'm not 20 something looking to rent my first apartment and start working life. What a bun fight.

Mike

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#1657343 25-Oct-2016 11:40

I know what you mean.

Before moving into the current place I was looking around and would call letting agents that would only deal with people over sms. Went to one viewing which had 20 or so people viewing at the same time and could not even speak to the agent to ask questions as they were busy talking to other or texting on her phone. She ended up handing everyone a vetting form and would only answer questions if you got to the next stage.

Ended up just looking for places where i could deal with the landlord directly and been there for almost 5 years now, only see the landlord 3 or 4 times a year or if we have an issue.

Don't even get me started on a letting fee, I never understood why I need to pay for other peoples credit checks (as whoever gets the place would have paid for the agent to do credit checks on other people during the vetting process) or for a service I did not request or engaged (i.e. owner/landlord engaged them to find a tenant).

alasta

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#1657736 25-Oct-2016 21:19

Whereabouts was this?

It makes you wonder if rents are about to increase dramatically to catch up with the rise in house prices. When investors stop getting their return from massive capital gains then something dramatic is going to have to happen.

tdgeek

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#1657780 25-Oct-2016 21:56

alasta:

Whereabouts was this?

It makes you wonder if rents are about to increase dramatically to catch up with the rise in house prices. When investors stop getting their return from massive capital gains then something dramatic is going to have to happen.

I don't think so. House buyers can and will pay more if they want to, renters in general are more likely to be income limited. So, the market would see the ROI drop, and if house prices stabilise, investors will look elsewhere. House prices may ease. Buyers and renters will look to other towns and locations.

Fred99

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#1657781 25-Oct-2016 21:57

alasta:

Whereabouts was this?

It makes you wonder if rents are about to increase dramatically to catch up with the rise in house prices. When investors stop getting their return from massive capital gains then something dramatic is going to have to happen.

Yes - they're going to start losing money. Rental homes and commercial property leasing isn't a cost plus model. It's market based - where unless you're running a charity, you always charge the maximum that the the market can bear. If the increased costs mean that's more than the market can bear - you haven't got a business any more.

DravidDavid

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#1657795 25-Oct-2016 22:21

MikeAqua:
Several lots of prospective tenants attended every viewing with others waiting outside to view other apartments in the same complex. Creates a competitive atmosphere, which some people buy into and get a bit pointy elbowed, lol.

I know what you mean regarding the pointy elbows and the competitive atmosphere. I'll likely be back in to it soon as I want to move. I'm not really looking forward to it, but at least I've got an edge on my former 20 something self now. I've noticed there is HUGE competition for the 300 to 450 range. But once you hit this magical 600 per week mark, the sky is the limit, haha. This is why I'm trying to convince friends to move with me.

Kyanar

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#1657812 26-Oct-2016 00:23

Consider yourself lucky its not as bad as here in Australia yet. Here you have to provide payslips, bank statements, reference letters, names of every person moving with you, number of pets and breeds, and are subjected to reference checks, credit checks, employment checks, and if even one thing offends the precious sensibilities of the property manager, no rental for you. That's on top of three monthly inspections (during which they have a go if the windowsills are dusty, or there's soap in the shower tray), and the property manager having a copy of the house keys so they can let themselves in (which incidentally means that as a renter, you cannot get contents insurance which actually covers you).

Geektastic

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#1657817 26-Oct-2016 00:43

alasta:

Whereabouts was this?

It makes you wonder if rents are about to increase dramatically to catch up with the rise in house prices. When investors stop getting their return from massive capital gains then something dramatic is going to have to happen.

Rents have always seemed low to me.

When we first moved here we rented in Plimmerton and the rent was laughably small for a house on the sea front compared to what we were used to in the UK. We rented our flat out in the UK for GBP950/month and the mortgage payments were GBP350/month! UK landlords generally expect to make income over an above any mortgage and property costs with any capital gain merely being icing on the cake if it happens.

Significant taxes on capital gains here would probably drive rents up to compensate. Law of unintended consequences...!

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Batman

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#1657900 26-Oct-2016 08:58

When i was in Melbourne looking to rent there would be a queue that forms half an hour before open time, and people have a folder complete with all the required info, references, and when the agent arrives 10-50 applications are handed in. Freaked me out. That was 5 years ago. Auckland is heading that way.

jonathan18

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#1657904 26-Oct-2016 09:02

Kyanar:

Consider yourself lucky its not as bad as here in Australia yet. Here... (cut) the property manager having a copy of the house keys so they can let themselves in (which incidentally means that as a renter, you cannot get contents insurance which actually covers you).

Huh?

What limits are placed on landlords (or their agents) entering a house with the said key? I'm assuming there are similar requirements re notice, frequency etc?

MikeAqua

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#1657915 26-Oct-2016 09:15

Kyanar:

Consider yourself lucky its not as bad as here in Australia yet. Here you have to provide payslips, bank statements, reference letters, names of every person moving with you, number of pets and breeds, and are subjected to reference checks, credit checks, employment checks.

The agency here (Wellington) wanted all that too. I didn't provide most of it. I provided photo ID, one payslip, with a lot of detail redacted and gave them the contact of two of my board. Handed over a pre-completed form at the viewing. Still got the tenancy though.

Mike