Renting a Property

When you first arrive in New Zealand you may need to rent a property before you consider buying a house.  It is important to take some time to look for a rental home as prices and quality vary depending on location and the size of the house or flat. However, if you do find something suitable you will need to move quickly as good rental homes are in high demand.

What can I expect from a rental home?

Most rental properties are unfurnished. This means that there will be an oven, laundry facilities and possibly curtains and carpets. However, this will vary from property to property. Some landlords may supply whiteware appliances. Generally, you will need to furnish the property yourself.

Some rental properties are semi-furnished which means the house or flat will have some of the furniture you may require. It is also possible to rent fully furnished properties, but these are much more expensive and generally used for short-term stays.

With all rental properties you (the tenant) will have to pay electricity, gas, telephone, and water charges unless otherwise agreed upon with your landlord.

What kinds of rental properties are available?

In New Zealand self-contained units or apartments are called flats. These are usually part of a block and can be rented mostly in central city areas. Also available are houses and cottages, which are both in city centres and rural locations. All of these will be advertised as unfurnished, semi-furnished, or fully furnished.

Increasing in property is the rental of holiday accommodation. There are lists of houses and home stays throughout New Zealand that can be rented for weekends or longer.

How do I go about finding rental accommodation?

Advertisements looking for a ‘flatmate’ means that it is a shared house situation. You are renting a room only and sharing all the other facilities in the house as well as the expenses.

The major daily newspapers accommodation sections. Most of these major daily papers have online websites as well.

You can also put an advertisement in the newspaper under ‘wanted to rent’, listing details of what you want in a home. For example, you can say how many bedrooms you are looking for, the range of rent you can afford, or how long you want to rent.

Loot / Trade and Exchange - These are publications that come out once a week and also contain an accommodation section.

Real Estate Agents - These agents usually deal with buying and selling homes however they will generally have a section for renting too. They normally charge a letting fee of around a week’s rent plus GST.

Rental Costs

What are the upfront expenses?

Before you move into the property, there are a number of upfront costs that you will probably need to allow for.

The landlord can ask you to pay a bond of up to 4 weeks rent. This is lodged with the National Residential Tenancy Board, which is part of the Ministry of Housing. It is returned to you when you leave the property. Some landlords may only charge two weeks bond and some may only ask for two weeks rent in advance. If the house or flat is damaged in any way during your stay, the landlord can keep the bond to cover the costs of repairs.

Sometimes the rent you pay is inclusive of water rates, gardening or lawn mowing. It is, however, a common practice by some landlords to expect you to pay water rates on top of your rent and to ensure the garden and lawns are kept tidy at your own expanse. Be sure you talk to your landlord about their expectations in the beginning of your tenancy.

When you move into your new home, you will need to establish utility connections. This is a fairly easy and painless exercise. Depending on the location of your home, you will have a selection of different companies to choose from.

Water- Generally, you will receive a water bill once every six months.

Electricity - There is usually a setting up fee and a bond that is required if you have never had an electricity account before. Some companies have policies where they forego the bond if you set up a direct debit account with the company.

Gas - Gas, though a cheaper option, is not as widely available as electricity in New Zealand, but is limited to certain areas of various cities.

Types of Rental Agreements available?

There are two types of rental agreements:

Fixed Term Agreement:
This agreement covers you for a period of time as agreed between yourself and the landlord. It is very difficult to get out of the agreement if you want to vacate the premises earlier. Normally you would be required to find a new tenant before being able to shorten your lease period. However, it covers the risk of having to move if the landlord sells the house or wants to move back into it.

Periodic Tenancy:
This agreement is more flexible and open ended. If you want to leave the premises you must give 21 days notice. If the landlord wants you to vacate the premises for no reason, he/she must give 90 days notice. If the landlord or his/her family wants to move into the property, the landlord must still give the tenant 45 days notice.

What happens when I sign a Tenancy Agreement?

Generally, a tenancy agreement will ask for personal details, work information and sometimes references may be required. If you are unemployed at the time of making an application for a property, be honest about it and tell the landlord that you have sufficient funds to cover the rent until such time as you gain employment. Normally this is not too much of a problem but sometimes an offer to show them your bank statement can help the agreement process.

Once you have successfully secured your rental home, you may be asked to complete a document that lists any problems with the house at the beginning of your tenancy. For example cracks in windows, wallpaper peeling, broken fixtures and so on need to be written down before you move in. be sure to inspect the house thoroughly to ensure you are not liable for any costs at the and of your tenancy.

If property has whiteware appliances (oven, fridge etc) and they breakdown during your tenancy, the landlord is responsible for the repairs. The landlord has to request a house inspection but he must give you 48 hours notice.