Accidental landlords: what are they and their impact on the Hamilton rental market

Over recent months, we’ve noticed more property owners coming to Lodge who fall into the accidental or unplanned landlord category. We think it’s great timing; the increase in accidental landlords has released some much-needed rental accommodation into the Hamilton market, with demand for rentals currently sky-high.

What is an accidental landlord?

Simply put, an accidental or unplanned landlord is someone who has come into the rental property market as a result of a particular situation, and usually doesn’t have a long-term investment plan. Accidental landlords typically come into property ownership through a major life situation, such as divorce, employment transfer, inheritance or from growing or shrinking their family.

Where they usually would have sold their property and bought another, they are either unable or unwilling to sell in the current real estate market.

What should you do if you find yourself in this situation?

At Lodge City Rentals, we have noticed a significant increase in accidental landlords signing their properties up with us. Becoming a landlord in this way is quite common, and the vast majority of landlords in New Zealand, about 78%, are ‘mum and dad’ investors who typically own just one investment property. This puts paid to the common belief that rental owners are moguls with several properties at their disposal!

There’s a lot to learn when you become a landlord, so it makes sense to reach out to a trusted advisor like Lodge City Rentals. We can walk you through the ins and outs of owning an investment property, including some of the smaller factors that can make or break a successful tenancy. Looking after a property can be a full-time job, so it makes sense to trust the experts to deal with the nitty gritty, including:

• Finding the right tenants.
• Organising rental agreements.
• Collecting bond and rent and chasing late payments.
• Maintaining the property.
• Undertaking regular inspections.
• Organising repairs.
• Maintaining legal responsibilities and obligations.

What if you go overseas?

If you own rental property in New Zealand and move overseas, or go overseas on holiday for 21 days or more, you are legally required to have a New Zealand-based representative, such as a property manager, look after your property. If you’re overseas and you don’t have a property manager, it gets that much trickier trying to sort out repairs or chase rent when you’re in a different country. Aside from it being a legal requirement, it just makes sense to have an expert property manager on the ground to save you time and stress when it comes to managing your rental.

The start of something bigger?

The increase we’ve seen in landlords coming to us with a property they’ve acquired from circumstance is well-timed for the wider rental market in Hamilton, adding much-needed rental stock into the city.

Demand for quality rental properties has never been higher, and in March 2023 we recorded our highest-ever tenancy figures:

• 179 new tenancies signed – with 36% of those to out-of-towners moving to Hamilton.
• 1,262 viewings.
• 1,358 tenancy applications.
• 3,018 tenancy enquiries.

If you do find yourself with an investment property on your hands, rest assured the demand for quality rentals in Hamilton is high. There are many great tenants out there looking to rent, with more coming through looking for short-term six month leases and fully furnished properties.

You never know, your ‘accidental landlord’ situation could be the start of a burgeoning property portfolio – even more reason to have Lodge City Rentals on board from the beginning as we can help guide you through the property management journey for many years into the future.