Big topics for property investors in 2025

In 2024, overall enrolments at the University of Waikato were up 6% - still not back to pre-Covid levels but not far from it.  While final enrolments for 2025 are still to be confirmed, it's looking likely we’ll see a similar uptick.

With no new on-campus accommodation, more students in town means more demand for privately owned rental properties, especially those in Hillcrest and its surrounds. 

This trend shows no sign of waning, with international students returning in droves, momentum continuing to build for a medical school and new offerings like midwifery and pharmacology now in hot demand, with an influx of new staff as well as students. 

It’s widely predicted more jobs will go this year with unemployment rates just tipping over 5% across New Zealand.  It doesn’t sound like much cause to celebrate but here’s some perspective we urge you to consider:

• Statisticians concur it's all looking up from 2026 – economic stabilisation is around the corner.
• It’s young New Zealanders disproportionately affected, particularly school leavers.
• Businesses continue to relocate to the greater Hamilton area, thanks largely to developments in the likes of Ruakura, Horotiu and Tamahere.
• Wages rose an unprecedented 4% in 2024 significantly ahead of inflation at 2.2%

Finally, it’s important to remember a tenant who finds themselves unemployed isn’t suddenly defaulting on rent obligations.  As property managers, you can be assured we’ll be supporting them to access financial support to tide them over until they find a new job. 

On 30 January 2025, some big changes to tenancy legislation came into effect.  Here’s a brief recap:

• Tenants now only have to give 21 days’ notice to end their periodic tenancy (not 28).
• Landlords can now end a tenancy by issuing a 90 day notice for ‘no cause’, giving them confidence to offer properties to tenants considered to be higher risk.
• Landlords can now end a tenancy with 42 days notice if they are selling the property and the purchaser requires vacant possession or the landlord wishes to reoccupy the property (not 90)
• Landlords can expect to receive more requests by tenants for pets and will only be allowed to refuse these on reasonable grounds. They can, however, require a pet bond, to cover any pet-related damages.
  Rest assured we’re on hand to talk you through the finer details. 

In property investor circles, there is often talk about activist tenants champing at the bit to take their landlords to the Tenancy Tribunal.

The numbers tell a different story.  In 2024, 84% of applications to the Tenancy Tribunal were from landlords and most of these were about unpaid rent – you can read more about these insights here.

Here at Lodge, our arrears percentage sits at 1.1%. We’re really proud of that figure and the systems that help us keep on top of it.

We’ve been working closely with landlords since 2019 to help them get their properties compliant with the Healthy Homes Standards. 

From 1 July, tenancy agreements (new and renewed) must include a signed statement from a landlord about whether the property is compliant or not.  Those found non-compliant will face fines of up to $7200.    

You can read more about the Standards and the changes coming in July here.

And remember, we’re here to help.