Kiri Barfoot, the third generation of her family in the business, is a great believer in technology as the cornerstone of the company’s success.
As director of the company’s property management division, Kiri taps into statistics from the nearly 17,000 rental properties managed by the company between Kerikeri in the north and Pukekohe and Te Kauwhata in the south.
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She says that while rents have gone up in the past 12 months by an average of $17 per week, this is the lowest annual change for several years. There is still not enough supply in the market (the company records an average of four or five applicants per property), making this a landlord’s market. However Barfoot & Thompson finds that good landlords still want good tenants, with good references, to stay longer.
“We want to manage good properties, we’re a family company and we say ‘would you want to put your family in that house?’” she says. “Landlords want to be reasonable, so spending a few thousand dollars on alarms and insulation means that tenants stay longer, and want to look after ‘their’ home.”
“Most landlords are in it for the long term, not just quick capital gain. We do also take the responsibility to educate some landlords; we don’t want tenants taken advantage of, for example, around privacy rights or notice to enter a property.”
Barfoot & Thompson sets great store by their Real Estate Institute of New Zealand accreditation in property management, which sets professional standards in an industry where anyone can call themselves a property manager. She’s heard stories of bonds not being filed with a tenancy services, landlords not receiving rents and companies continuing to manage properties which no longer meet insulation or other health standards.
“We want to give good long term service to landlords, even if that means we have to say no to managing some properties,” she says. “It is much better today to be a tenant than it was, and some people may never buy a house, whether by choice or circumstances.”
Barfoot says the average tenancy is around 20 months, usually terminated by the tenant, but the company has some tenancies of over 20 years, many of five years or longer. Higher-end properties asking $1,000 a week or more are not uncommon, and demand is ramping up in that market as America’s Cup teams start moving into Auckland.
“With the overseas investment regulations, teams can’t buy here as they could in previous Cups, they are renting instead . And it’s a very tight geographical area they’re looking in.”
Company statistics show that rents for city apartments grew by $42 more per week (8.7 percent increase for the quarter year-on-year) as more high-end and larger apartments came on stream. Most of that growth is in two-bedroom homes (a 4.2% increase) compared to just over 1 percent increase in larger home rents.
“As well as a growing demand for city-centre rentals, the company’s track of search patterns found bigger demand in south and west Auckland, close to jobs and public transport, particularly Papatoetoe, Manurewa, Pukekohe, Papakura, Mt Wellington, Henderson, Mt Roskill and Mangere. The city and Epsom continue to be highly desirable because of their proximity to good schools and transport links, while suburbs that do not have good transport are not seeing the demand or rental growth”, Barfoot says.
“Rodney rents have gone up only $11 a week, compared to further down the North Shore or South Auckland, where increases average $19 per week,” she says.
And if you are navigating the tough rental market, Barfoot has some tips.
She recommends prospective tenants line up their paperwork (references, credit checks and payslips) before they start browsing or applying for properties. She points out that any landlord wants to be sure that a tenant would look after their million-dollar asset. If you are new to renting, she recommends personal references from someone like an employer.
And you may not be in luck if you’re searching for a home for you and your furry companion.
“While a small percentage of searches are for properties that allow pets, in a competitive market landlords don’t have to make as many concessions,” she says. “But don’t be afraid to negotiate with a prospective landlord.”
Keep funds aside for the deposit and first month’s rent, so that you can immediately apply and process payments to stay ahead of the queue. Stay signed up for updates on new listings and follow up immediately.
Turn up to viewings as soon as they are advertised – even if that is during mid-week working hours – and present yourself as you would for a job interview. Then follow up with thank yous, further information and any follow-up questions to show you are keen.
“Now that government is looking at rental properties through the healthy home standards, tenants get a much better opportunity for a warm, healthy home for the long term. That allows them to save when it’s a great time to be a first home buyer,” says Barfoot.
