Some Auckland homeowners are celebrating the increasing house prices, but there's a downside if you're a tenant. Properties are more expensive to rent and landlords are being forced to increase rents to cover mortgage repayments and maintenance.
One Māori homeowner is feeling that pressure.
January is the month when landlords review their rents, but for Rangi Rangitukunoa that's a challenging task.
He says, "We all know the challenges everyone faces to rent in Central Auckland, and this is our home, I understand mortgages are becoming more expensive."
Rangitukunoa owns this villa in Sandringham, a popular Auckland area worth well over a million dollars per home. But he rents out his second home to family.
"I truly believe that I owe everything to my family. That could be the reason we are doing that. Our family helped us and in time I hope to return that love to them," he explains.
But for the other thousands of tenants in Auckland looking for rental properties, they might not receive the same generosity.
Despite Auckland's rising property prices, Andrew Bruce from the Auckland Property Investors Association says landlords must adopt a systematic approach to rent reviews and increases.
APIA president Andrew Bruce says, "As a landlord I'd be encouraging people to do is to make sure their rentals are actually at the market level."
Bruce uses Trade Me as an indicator to determine rents, "If people overcharge you end up having a lot higher turnaround of tenancies, you have vacancies and vacancies is one of the bigger costs among other things that landlords can incur."
If you're looking for a rental in Auckland, your best chance is to start now. But if you're a landlord make sure to set the rent at the right price.