Rental Revival: End of the AirBNB market?

The Raglan Chronicle caught up with Michelle Pearson, Raglan resident, real estate investor and a manager of her family’s business Waikato Real Estate, to find out more:

Raglan Chronicle: So Michelle, what impact is Covid-19 having on the property market here in Raglan?

Michelle Pearson: Well, since the country has gone into lockdown, shut its borders, and sent tourists home the demand for AirBNB short term rentals has naturally plummeted. The normally busy Easter weekend came and went during Lockdown and as we head into winter, it is quite likely that some of the holiday homes around Raglan will not see any bookings until Christmas comes around. That is a long time for property owners to hang around and wait for some income to come in!

RC: And what does this mean for our readers who are tenants here in Raglan?

MP: This could be great news for locals struggling to find a good long-term rental property! At Waikato Real Estate we manage over 1200 rental properties and during Lockdown we have been fielding a lot of enquiries from people owning properties in AirBNB hotspots – places like Raglan and Cambridge. If these owners get serious about switching their holiday home to a rental then that will mean greater supply of long-term rental properties and potentially lower rents – greatly benefitting Raglan and its residents.

RC: Okay, so if you own a holiday home and want to switch it to a long-term rental – what is your advice?

MP: Aside from clearing out your longboards and beach towels, there are a few other items to consider! To operate a long-term rental your property needs to comply with the Residential Tenancies Act (RTA) with regards to insulation and the upcoming Healthy Homes Standards. The RTA defines the rights and duties of landlords and tenants and has been amended recently under the Covid-19 Response Legislation Act 2020. A lot of landlords are unaware of these law changes and how they impact them, so at Waikato Real Estate we have been busy educating our clients on these developments.

RC: Sounds a little complicated! What can Waikato Real Estate do to help property owners?

MP: In short… a lot! Waikato Real Estate is a local family-owned business, operating in the Waikato since 1985 – we are no new kid on the block! Unlike many other Real Estate companies, we specialise in Property Management. Our team knows the rental market and RTA inside out, and we are here to take the stress out of being a landlord. Additionally, we are proud to offer the most competitive rate in town of 7.9% + GST, which is an all-inclusive management fee (no additional charges for inspections, arranging maintenance, or Tenancy Tribunal appearances).

If you’d like to chat to Michelle Pearson directly you can contact her at:  0210 8321516 / michelle@wre.co.nz