While naysayers were predicting long term rents would crash and burn and we would see 50% discounts, this has not happened. Yes rents have been affected and we have seen a softening by between 5% and 15% compared to January / February 2020.

Tenants have welcomed the change with those whose tenancies are renewing, negotiating a bit of a rent decrease, which is a new trend not seen in Wanaka for more than a decade. Some opportunistic tenants who have explored taking advantage by quitting current tenancies have found that they need to pay the owner’s reasonable costs in re-advertising / re-tenanting the property , as well as paying their current rent until the new tenant moves in.

Around 25% to 30% of tenants came to an agreement with their owners to temporarily reduce their rent while they were being paid wage subsidies or if they had been made redundant. While we are still seeing a few new redundancies amongst tenants, the majority of tenants have paid their full rent through the crisis. Owners, who have faced their own investment losses and job cuts, have been amazingly generous to their tenants.

There is still demand for long term and seasonal rentals. 100% of our winter properties were rented before the end of June. Supply levels of long term properties are returning to pre-lockdown levels. Average time to rent properties is between 3 and 4 weeks. As always, the demand is for warm, sunny homes with some privacy and good storage.

We are always available to discuss your rental plans and give advice.