A new Hobsonville development is offering tenants the chance to keep their rental for up to seven years – the kind of long-term lease more typically seen in Europe than in New Zealand.
This gives security of tenure for those who want to rent there, while also reducing the cost of tenant turnover for the landlord.
There is an option to exit the lease if necessary, while still working within the constraints of the Residential Tenancies Act. This is the first nod we’ve seen towards the trend of life-long tenants seen in other parts of the world. It could be beneficial to both landlord and tenant, giving both parties some certainty around rent and security. This has been discussed by Andrew Bruce at the Auckland Property Investors’ Association and Gareth Morgan’s TOP party prior to the election. Will we start to see apartments being offered for a five-year tenancy? It could happen, but with the annual student market still an important demographic in our industry, this may not be the right part of the market for long-term fixed tenancies.