Source: Te Ara Ahunga Ora Retirement Commission
Research reveals insights on landlords’ experiences, perceptions, and priorities regarding older tenants in the private rental sector
A new report commissioned by Te Ara Ahunga Ora Retirement Commission highlights how unprepared New Zealand landlords and property management companies are for the growing number of older tenants in the private rental sector.
The report, conducted by Perceptive, was based on a survey of 709 landlords and in-depth interviews with eight property management companies and nine build-to-rent operators. It provides key insights on the demographics, behaviours, attitudes, and considerations related to older tenants in the rental market.
A recent estimate by Te Ara Ahunga Ora based on current housing tenure trends suggests more than 600,000 New Zealanders aged 65 and over may be renting in the private rental sector by 2048, a 100% increase on 2022 levels.
Te Ara Ahunga Ora Policy Specialist, Dr Jordan King says with an ageing population, demand for accessible housing is increasing.
“The findings from this research suggest the private rental sector is unlikely to provide sufficient accessible housing to meet the growing demand,” he says.
“There’s an opportunity for the private rental sector and property management industry to recognise the importance and value of accessibility modifications, and for greater industry dialogue to occur on supporting older renters to ‘age in place’.”
Some of the main findings of the report include:
- 74% of landlords believe it is important for ageing tenants to remain in a property as they age even if modifications are necessary.
- Landlords have positive perceptions of older tenants, as they are seen as reliable, respectful, and low-maintenance. However, 60% agree that ‘older tenants may have accessibility needs which require modifications’ to a property.
- Landlords have little experience with older tenants, almost half have never had a tenant over 65 years of age.
- With many landlords having only limited experience of older tenants and their needs, only a small number of landlords (15%) have made or considered making modifications to their properties to address the needs of older tenants.
- Most modifications are funded by the landlord themselves (57%). Awareness of potential government funding amongst landlords is relatively low (24%), with only 5% of landlords having accessed it.
- Encouragingly, 39% of landlords would consider making modifications, with only 4% being opposed to making any modifications. Forty-one per cent of landlords are also open to tenants making modifications themselves albeit with permission.
- For 58% of landlords, making modifications would depend on the cost (37%) or type of modification (21%), indicating it is very much a case-by-case approach in the sector.
- Property management companies do not currently have specific policies and procedures in place to manage the tenancies of older renters.
Dr King says the report signals that New Zealand’s existing housing stock is not well configured to support those with accessibility needs, and the cost of modifying existing dwellings can be high.
“Renters face barriers both in terms of financing modifications, but also in seeking landlord permission for modifications of a rental dwelling to occur.
“The ‘golden assumption’ is that New Zealand retirees will have their financial wellbeing supported via mortgage-free homeownership, with home equity available to support modifications or to provide the agency to select housing appropriate for their needs. However, based on the current trends we are seeing, this will no longer be the case, with accessible and healthy rental housing needed more than ever.”
The report also explores the emerging number of Build-to-Rent (BTR) developments, which are purpose-built rental properties that offer professional management and long-term leases. The report finds that BTR companies, while not currently focusing on older tenants as a target market, are generally aware of the importance of incorporating universal design standards into developments. There is scope for the BTR industry to expand their offerings for older tenants including increasing accessible stock numbers and offering moderate or lower cost options.
Full report, ‘Population ageing and the private rental market: How prepared are NZ landlords’ available here (ref. https://assets.retirement.govt.nz/public/Uploads/TAAORC-Population-Ageing-and-the-Private-Rental-Sector.pdf ) and the accompanying policy brief here (ref. https://assets.retirement.govt.nz/public/Uploads/Policy-Brief-Renting-Barriers.pdf )
