Rental Properties Glut Spells Losses After RWC

Rental Properties Glut Spells Losses After RWC

Property owners who rent out their property during the Rugby World Cup stand to lose what they gained after it's all over.

Nation-wide residential property management company Quinovic is warning of a glut of rental properties flooding the market - and it's likely to last for up to 3 months.

Quinovic Business Development Manager Juliet Robinson says in November when all the tourists have gone, apartments and homes coming onto the market will face extra competition from other rental properties up for annual renewals.

She says many of those trying to take advantage of the opportunity that the Cup provides have been quite short sighted.

"Those who inflated rents will certainly not attract the same level of income after the Cup and for a while may not be able to attract anything at all. So they stand to lose what they gained."

Ms Robinson says Quinovic around the country has rented very few properties out for World Cup visitors - cautioning its clients about potential post-Cup losses.

"We always stress the stability of long term tenancies and the reliable revenue that provides," Ms Robinson says. "Long term tenants are also unlikely to cause problems and damage whereas that can't be said about some short-term visitors."

Ms Robinson says the warning just issued by insurers that property owners face losses from trashing is very real and they won't be covered if insurance companies are unaware of a property's use by short-term tenants.

She says most of those letting out their homes or other properties privately know little about tenant vetting, monitoring and management, or the legalities, tax implications and Residential Tenancies Act requirements

Quinovic is the country's largest independently owned residential property manager - dedicated solely to management and not selling of real estate.

ENDS

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