Update on the Hawke’s Bay rental housing market

In the Hawke’s Bay rental market, a new listing will typically attract around 40 groups to view the property, so the competition is intense. Tenants are advised to be on the ground when they start their search in earnest so the property manager or property owner can get a good sense of you and any fellow tenants

Ray White Napier property management agent, Ian Dickinson, says the region is attracting a large number of immigrants. He estimates of the tenants he meets, around 75%, are new to the country, from Sri Lanka, India, South Africa and the Philippines, all finding work in Aotearoa New Zealand.

“There’s many more people but the rental stock hasn’t increased,” he explains.

His tip to tenants anxious to find a property in Hawke’s Bay is to make personal contact with property managers like himself. “I want to meet them face to face,” he says. He appreciates people who make the effort of coming into the office and introducing themselves.

Mel Parsons, property manager with Property Scouts agrees there’s very high demand for rentals in Hawke’s Bay and it’s been like this for over five years, only slowing down around Christmas.

The most popular type of rental home is a three bedroom home for between $600 and $700 a week, she says. And Havelock North and Taradale are popular for families as they have good schools.

Rents have gone up in the past year because insurance for landlords in the region has doubled or tripled and rates have gone up thanks to a cyclone charge, warns Mel. Landlords are also having to spend on bringing their properties up to healthy homes standards.

Tenants have to be clear how many will be living in the home, says David Pearse, director of Pukeko Rental Managers. If the owner says four can live in the home and six of you show up, he will obviously have some questions.

When choosing a new tenant for a rental property, David brings together the best four or five applicants and sits down with the owner so they’re part of the decision.

“For the ones we present, we’d be happy to have any of them. Around 25% to 30% of applications don’t have the financial income where we’d be confident that they’d maintain the rents,” he says.

“There’s huge demand and I wish I had more properties but we just don’t,” he adds.

Due to such strong demand for rental homes in Hawke’s Bay, especially in the wake of Cyclone Gabrielle a year ago, Bayleys has just launched a new property management business called Bayleys Key Rentals after buying a local rental portfolio.

Director of the new business, Suz Hall, says Hawke’s Bay is one of the most sought after provinces in Aotearoa because it offers such a great lifestyle.

“People are coming to enjoy all that Hawke’s Bay has to offer which includes world-renowned wineries, outdoor pursuits, education, hospitality and job opportunities,” says Suz.

Popular towns for families who want to live near good schools include Central Napier, Hastings and Havelock North, says the Bayleys director.

For couples wanting to downsize or work from home, they tend to go for rentals in Havelock North, Napier Hill, Ahuriri and Parklands, she says.

The way tenants can compete for a rental home comes down to having great references, the Bayleys director advises.

“Landlords are spoilt for choice in most areas of Hawke’s Bay and don’t have to offer the property to the first applicant,” says Suz. “The more the tenant is willing to share about themselves, and who will be living at the property, the better,” she adds. “And most importantly, if they’re living locally, they should meet us in person and view the property, they shouldn’t just send in an online application.”