A Guide to House Renting in New Zealand

It takes work to look out for real estate, be it to buy or rent. Buying and renting a property involves a lot of nitty-gritty and due diligence. The rental market is diverse, with various housing types under different price ranges. We will help you take the right steps to help you avoid mistakes that most renters commit.

Where to find a rental?

There are various ways to look out for rental properties. It can either be by contacting landlords directly, or you can go through an agent/broker. Nowadays, a few online aggregators can help ease out the great from the rest. This will give you an overview of rents and the rental properties available in the area you are considering. The market is highly skewed regarding demand and supply regarding good offerings, so it pays to make contact quickly to get the first mover advantage.

If you’re looking for rental properties in New Zealand, there are several places you can look. One of the most popular options is Trade Me, a leading online marketplace for property rentals in New Zealand. You can also check out websites such as Realestate.co.nz, which lists rental properties from various real estate agents nationwide. Another option is to go directly to real estate agencies such as Ray White, Harcourts, and Bayleys, which have rental listings on their websites. Additionally, local newspapers and community noticeboards may have rental listings in your area of interest. It’s important to research, compare prices, and inspect the property before signing any rental agreement.

Rental costs

According to a report by Barfoot and Thompson, the average rental for a 3-bedroom home in Auckland as of January 2023 was $639. Of course, rental prices across the country will vary considerably.

Scanning and taking your time when scouting a rental property is always prudent. As in every country, the cost of rent depends on the quality, location, amenities, infrastructure, and property size.

Prices for rentals vary throughout the country. Main centres usually have higher prices. Areas around commercial parks and business centres may command a certain premium. Avoid places with a lack of access to essential stores and medical facilities. 

The amount of rent charged is directly an outcome of factors such as neighbourhood/area, size of the house, its condition, and type of apartment. Areas where wealthy people live, with well-regarded schools, command high rent prices. Other areas where the schools are less well-regarded command lower rents.

If the kitchen fittings, bathroom fittings and carpets are tired and worn-looking, you should pay a lower rent.

The Healthy Home Standards

In New Zealand, several standards and regulations aim to ensure healthy and safe homes for its citizens. One of these is the Healthy Homes Standards, introduced in 2019 by the New Zealand Government. 

The standards cover several aspects of a home, including heating, insulation, ventilation, moisture ingress, drainage, and draught stopping. The aim of the standards is to ensure that rental properties in New Zealand are warm, dry, and healthy for tenants to live in. The standards apply to all rental properties, and landlords must comply within a certain timeframe. Failure to comply with the standards can result in penalties.

The Healthy Homes Standards have been introduced to address the issue of poor housing conditions in New Zealand, which has been linked to several health issues, including respiratory problems and rheumatic fever. The standards are designed to improve the quality of rental homes in New Zealand and create a healthier living environment for tenants. 

The standards are also expected to reduce energy consumption and improve the energy efficiency of homes. This is expected to positively impact the environment and reduce the cost of living for tenants. Overall, the Healthy Homes Standards are a significant step towards improving the living standard for New Zealand renters.

What type of Tenancy Agreement should I sign?

In New Zealand, tenants and landlords can enter several types of residential rental agreements. The most common types are periodic tenancies, fixed-term tenancies, and boarding agreements.

Periodic tenancies are the most common type of rental agreement in New Zealand. These are ongoing tenancies that have no fixed end date. They can be terminated by either the tenant or landlord with the required notice period, usually 21 days.

Fixed-term tenancies are tenancies that have a specified end date. These agreements are commonly used for short-term rentals or when a landlord needs a tenant to vacate the property at a specific time. A fixed-term tenancy cannot be terminated before the specified term ends unless both parties agree.

Boarding agreements are agreements for tenants who rent a room in a property and share common areas such as the kitchen and bathroom with other tenants. These agreements are common in boarding houses or student accommodations.

Tenants need to understand the terms and conditions of the rental agreement they are entering into. They should also be aware of their rights and responsibilities under New Zealand’s tenancy laws, which are designed to protect both parties. If in doubt, seeking legal advice or information from a government agency, such as Tenancy Services, can be helpful.

Issues with Landlords

As a tenant in New Zealand, it’s important to know how to resolve issues that may arise with your landlord or rental property. The first step is to communicate with your landlord in writing, outlining the issue and requesting a resolution. If the issue is urgent, such as a health or safety hazard, contact your landlord immediately by phone and follow up in writing.

If your landlord is unresponsive or refuses to resolve the issue, you can contact Tenancy Services, a government agency that advises and assists tenants and landlords. They can help you understand your rights and responsibilities under New Zealand’s tenancy laws and facilitate mediation between you and your landlord.

In some cases, it may be necessary to take legal action against your landlord. This can include applying to the Tenancy Tribunal, a specialized court that hears disputes between tenants and landlords. The Tribunal can make binding decisions and enforce them if necessary. Before taking legal action, seeking legal advice and considering the costs and potential outcomes is important.

As a tenant, keeping records of all communication with your landlord and any issues or repairs needed in the rental property is important. This can help resolve disputes and serve as evidence for legal action. Remember that tenants and landlords have rights and responsibilities under New Zealand’s tenancy laws. Communication and cooperation are key to resolving issues and maintaining a healthy and safe rental property.

You must pay your rent on time. Even if there is a problem with the property or the landlord is not doing what they should, you must continue paying rent to avoid penalties.

What kind of insurance do renters need?

In New Zealand, renters are not legally required to have insurance for their personal belongings or liability. However, tenants must consider taking out insurance to protect themselves in case of unforeseen events, such as fire or theft.

Tenant insurance, also known as contents insurance or renters insurance, covers the tenant’s personal belongings, such as furniture, clothing, and electronics, against damage or loss. Some insurance policies also provide liability coverage if the tenant accidentally damages the rental property or injures someone.

Landlords are required by law to have insurance for their rental properties, including building and contents insurance. This insurance covers the property, such as the structure and fixtures, against damage or loss. However, it’s important to note that the landlord’s insurance does not cover the tenant’s personal belongings or liability.

Tenants can purchase tenant insurance through various insurance providers in New Zealand. It’s important to compare policies and understand the terms and conditions of the insurance before making a decision. 

The current situation in the New Zealand Rental Market

The rental situation in New Zealand is currently a topic of concern, with many tenants needing help finding affordable and suitable accommodation. The demand for rental properties in New Zealand has been increasing due to population growth, increased tourism, and a shortage of affordable housing options for first-time buyers. As a result, rental prices have steadily increased over the past few years, making it difficult for many tenants to afford rent.

Rent in New Zealand kicked off 2023 at an all-time high, with the national median weekly rent reaching $595 in January, according to the latest Trade Me Property data. (source)

Additionally, some rental properties in New Zealand have been found to have poor living conditions, such as inadequate heating, insulation, or ventilation, which can lead to health problems for tenants. The New Zealand government has introduced regulations, such as the Healthy Homes Standards, to improve the quality of rental properties and protect tenants from substandard living conditions.

Despite the challenges, there are also positive developments in the rental situation in New Zealand. For example, there has been a growth in social housing projects, and the government has introduced policies to increase the supply of affordable housing. New technologies and platforms, such as online property listings and tenant screening services, are making it easier for tenants to find suitable rental properties and for landlords to find reliable tenants. 

Overall, the rental situation in New Zealand remains a complex issue, and ongoing efforts are needed to ensure that tenants have access to affordable, safe, and healthy rental properties.