The Changing Face Of Renting In Hamilton

Long-term renting is on the rise across New Zealand, changing the relationship between tenants and landlords in a big way, especially in Hamilton where rates of home ownership are already among the lowest in the country  - 53.5% relative to the national average of 66%. 

Why do fewer people own their own homes in Hamilton?
Long story short, we have a more youthful population, and we are growing faster than any other urban centre in New Zealand.  We also have a relatively high migrant population.

Is home ownership still the holy grail?  
While it remains an aspirational goal for many Kiwis, a growing number are coming to accept that home ownership is unobtainable and will impact on their quality of life too much.  The tough economic climate of recent years, lingering uncertainty around interest rates, property values and new legislation swinging in favour of tenants has also helped create the conditions far more conducive to long-term renting. 

Reframing long-term renting as a win-win 
Choosing to rent over saving for a deposit and then buying at the earliest possible opportunity is a lifestyle choice that’s normalised in many other urban centres around the world.  In these places, rent money is typically seen as a necessary and predictable expense, not ‘dead money’.  It protects people from oscillating interest rates which can be unnerving at the best of times, but particularly for those with minimal equity in their homes, who often don’t have a buffer to cover unexpected repairs or surges in insurance premiums. These changing expectations reduce the stigma that has long been attached to renting in New Zealand, especially among the younger generation who are balancing the desire for freedom and flexibility with societal pressure to be financially responsible, and focused on the future.

The shifting expectations of tenants
With renting no longer just a temporary stopgap, expectations are shifting.  Tenants in it for the long haul expect to be treated as valued clients, professionally and promptly.  They’re unwilling to tolerate issues like leaky taps or broken appliances and they know their rights. They’re also confident to raising complaints if standards aren’t met, making compliance crucial for landlords.

How to survive – and thrive - as a landlord in this new era
Landlords with professional property managers will be the clear winners in this new era, ultimately because landlords managing a rental property as a side hustle simply can’t give the job the attention it requires. 

Property managers not only make it their full-time jobs to keep up to date with changing laws, but they have the skills, systems and independence to nurture professional, long-lasting relationships with tenants in a way individual landlords simply can’t.  By checking in regularly, addressing maintenance swiftly, and keeping all parties informed, tenants feel comfortable and respected. This is quickly become the rule, and not just the exception.  

Why landlords need to focus on attracting and retaining long-term tenants 
Having a high tenant turnover erodes profits more than many landlords realise – the costs of advertising, cleaning, and lost rent between occupants really do stack up. Long-term tenancies, on the other hand, built on high standards, create a more reliable income stream and make it more likely their assets will be treated well. 

In summary, the rise of the long-term renter is reshaping the rental market in a big way.  Landlords must adapt by elevating their professionalism which means investing in quality property management.