1
00:00:00,160 --> 00:00:02,719
Speaker 1: It wasn't long ago that people looking for a rental

2
00:00:02,720 --> 00:00:05,080
Speaker 1: property we're fighting off hundreds of other applicants to find

3
00:00:05,080 --> 00:00:07,480
Speaker 1: a home to rent. It was tough, but that tide

4
00:00:07,520 --> 00:00:10,400
Speaker 1: has turned. There are so many rentals available that some

5
00:00:10,560 --> 00:00:14,200
Speaker 1: landlords are offering incentives. Some are saying, come and rent

6
00:00:14,200 --> 00:00:16,599
Speaker 1: my place. I'll give you a five hundred dollars grocery voucher.

7
00:00:16,960 --> 00:00:19,960
Speaker 1: Others are offering three weeks of rent to sign tenants up.

8
00:00:20,320 --> 00:00:23,479
Speaker 1: So how big is the gap between supply and demand?

9
00:00:23,520 --> 00:00:23,880
Speaker 2: And why?

10
00:00:24,280 --> 00:00:27,560
Speaker 1: Serena Gibbon is from the Auckland Property Investors Association and Joints.

11
00:00:27,560 --> 00:00:28,720
Speaker 1: So now goodbrying to you, Serena.

12
00:00:29,320 --> 00:00:30,600
Speaker 2: Good morning, Andrew, how are you?

13
00:00:31,080 --> 00:00:34,800
Speaker 1: I'm good? So is this common as landlord's offering incentives

14
00:00:34,840 --> 00:00:35,600
Speaker 1: all over the place?

15
00:00:36,479 --> 00:00:38,760
Speaker 3: I wouldn't say it's terribly common. I think the fact

16
00:00:38,760 --> 00:00:43,120
Speaker 3: that we're starting to hear stories of these incentives popping

17
00:00:43,240 --> 00:00:46,000
Speaker 3: up around the marketplace just tells us how out of

18
00:00:46,080 --> 00:00:50,640
Speaker 3: line some landlords rent expectations are in terms of the market.

19
00:00:51,080 --> 00:00:53,120
Speaker 1: So for those who do go for the sweeteners, do

20
00:00:53,200 --> 00:00:54,120
Speaker 1: they work.

21
00:00:56,040 --> 00:00:57,360
Speaker 2: On a case by case basis?

22
00:00:57,400 --> 00:00:59,959
Speaker 3: I hope they work, But in general, I think look

23
00:01:00,440 --> 00:01:02,120
Speaker 3: at the end of the day, Andrew, if you put

24
00:01:02,160 --> 00:01:04,120
Speaker 3: a lipstick on a pig, it's still a pig, right,

25
00:01:04,319 --> 00:01:07,760
Speaker 3: So I think the better option for landlords is really

26
00:01:07,800 --> 00:01:12,200
Speaker 3: look at resetting their into expectations. Also look at incentivizing

27
00:01:12,240 --> 00:01:15,960
Speaker 3: the tenants by upgrading their properties and lifting the property's standards.

28
00:01:15,959 --> 00:01:18,240
Speaker 3: So that's a more attractive option for someone to call

29
00:01:18,319 --> 00:01:20,520
Speaker 3: a home. And I think for tenants, given all of

30
00:01:20,520 --> 00:01:23,480
Speaker 3: these choices, you know, rather than being distracted by a

31
00:01:23,480 --> 00:01:27,160
Speaker 3: five hundred dollars food voucher, research the landlord, go on

32
00:01:27,160 --> 00:01:28,880
Speaker 3: the tendency tribe, you know, find out what kind of

33
00:01:28,959 --> 00:01:32,520
Speaker 3: landlords are they going to be dealing with, Research the properties,

34
00:01:32,520 --> 00:01:34,520
Speaker 3: compare the options that are out there, because it's a

35
00:01:34,560 --> 00:01:38,800
Speaker 3: really good time to take advantage of that competitive edge.

36
00:01:39,040 --> 00:01:39,240
Speaker 3: You know.

37
00:01:39,319 --> 00:01:42,320
Speaker 1: The problem though, of upgrading your property is that's even

38
00:01:42,360 --> 00:01:44,880
Speaker 1: more expensive than a five hundred dollars grocery voucher, So

39
00:01:45,280 --> 00:01:46,880
Speaker 1: it's hitting the imagins.

40
00:01:47,200 --> 00:01:49,680
Speaker 2: Well. Not all upgrades would buy.

41
00:01:50,360 --> 00:01:54,040
Speaker 3: Not all upgrades will be backbreaking in terms of financial commitment,

42
00:01:54,200 --> 00:01:56,280
Speaker 3: and if you do it, if you do it smartly,

43
00:01:56,360 --> 00:01:59,840
Speaker 3: it could be incredibly cos sufficient attractive to the tenants

44
00:01:59,840 --> 00:02:01,800
Speaker 3: and will add value to the property. So I wouldn't

45
00:02:01,800 --> 00:02:04,280
Speaker 3: write that off straight away. I guess what I'm trying

46
00:02:04,320 --> 00:02:06,800
Speaker 3: to say is, you know, landlords and tenants are bit

47
00:02:06,880 --> 00:02:10,760
Speaker 3: off looking for long term benefits rather than short term sweetness.

48
00:02:10,800 --> 00:02:12,760
Speaker 1: Okay, so when did we start to see a change

49
00:02:12,800 --> 00:02:15,640
Speaker 1: from the rental shortage that we got used to before

50
00:02:15,680 --> 00:02:18,000
Speaker 1: to and oversupply. Did the change in government bring back

51
00:02:18,040 --> 00:02:21,360
Speaker 1: the investors and the landlords? Are they more properties online?

52
00:02:22,080 --> 00:02:24,680
Speaker 2: I wouldn't peg it with the change of government.

53
00:02:24,720 --> 00:02:28,480
Speaker 3: I would however, say that around about a year ago

54
00:02:28,639 --> 00:02:32,359
Speaker 3: we started hearing stories of properly using vacant for longer

55
00:02:32,520 --> 00:02:35,400
Speaker 3: open homes being you know, not really having a lot

56
00:02:35,440 --> 00:02:38,280
Speaker 3: of people visiting. So but I think that is really

57
00:02:38,360 --> 00:02:41,440
Speaker 3: much in line with the economy very lock stamp or

58
00:02:41,440 --> 00:02:45,680
Speaker 3: with you know, and exodus of the younger workforce from

59
00:02:46,000 --> 00:02:48,200
Speaker 3: New Zealand to the likes of Australia and the UK.

60
00:02:49,120 --> 00:02:54,520
Speaker 3: You suddenly have a bottoming out of tenant, the tenant

61
00:02:54,680 --> 00:02:58,280
Speaker 3: a certain cord of tenants. But also, you know, when

62
00:02:58,320 --> 00:03:01,200
Speaker 3: I think back to back in the post COVID days

63
00:03:01,200 --> 00:03:05,119
Speaker 3: when we're going around the country madly building infill terrace housings,

64
00:03:05,639 --> 00:03:08,400
Speaker 3: you know what we're hearing is a lot of those

65
00:03:08,480 --> 00:03:11,079
Speaker 3: terrat housings are sitting empty, either as properties will sale

66
00:03:11,120 --> 00:03:11,880
Speaker 3: or property for rent.

67
00:03:11,960 --> 00:03:15,160
Speaker 1: I have one last question, hopefully you can answer quickly.

68
00:03:15,840 --> 00:03:18,240
Speaker 1: There's a truism that rents never go down, they just

69
00:03:18,280 --> 00:03:21,320
Speaker 1: don't go up so fast. Could this gluck possibly see

70
00:03:21,320 --> 00:03:22,480
Speaker 1: a drop in rental prices?

71
00:03:23,639 --> 00:03:25,560
Speaker 3: Yeah, I think it definitely could see a dropping rental

72
00:03:25,600 --> 00:03:27,720
Speaker 3: prices in the short term. Hope it doesn't last long.

73
00:03:28,680 --> 00:03:31,440
Speaker 1: Of course. And Serena Gibbon is from the Auckland Property

74
00:03:31,440 --> 00:03:35,600
Speaker 1: Investors Association. For more from early edition with Ryan Bridge.

75
00:03:35,680 --> 00:03:39,120
Speaker 3: Listen live to news talks it'd be from five am weekdays,

76
00:03:39,400 --> 00:03:41,440
Speaker 3: or follow the podcast on iHeartRadio.