There are still opportunities, for tenants and landlords alike, despite the worsening economic conditions, the Otago Property Investors Association president says.
A full-time landlord, Cliff Seque has experienced several boom-and-bust cycles, and is optimistic about the oversupply of rental properties in Dunedin.
The number of rental properties advertised in the Otago Daily Times had doubled in recent months, as an increasing number of people stayed at their family home rather than go flatting, he said.
"A large number of people have been taken out of the rental market."
Landlords have had to "sharpen up their act" and install heat pumps, dishwashers and insulation in an effort to retain "better" tenants, he said.
"A property will attract the kind of tenants it deserves."
Landlords neglecting to upgrade their properties ran the risk of them remaining vacant in a softening market as "we are seeing market forces at work".
Mr Seque said he had heard of landlords, when rents came up for renewal, dropping rent by $10 to $15 to help good tenants struggling to make ends meet.
Lower interest rates had "helped soften the blow for landlords", he said.
Despite the oversupply of rental properties, the market would bounce back again and it was an ideal time to look for investment properties.
"After all, bricks and mortar don't disappear like finance companies."
The student property market was different from the rest of the market, with prices increasing to cover rates increases.
