A flat is advertised for rent in Dundas St. PHOTO: GERARD O’BRIEN
Student Flats Dunedin property manager Kathryn Seque-Roche suggested some were definitely "dropping prices" on student rentals.
She was unsure if it was helping to attract more renters.
In data released yesterday by Trade Me, it outlined that from October to November the median weekly rent in Otago declined 7.7% to $600 per week.
Click Property Management managing director Andrea Elliott suggested a change by the previous Labour government may have impacted the decline.
A tenant must give at least 28 days' written notice to end the tenancy, unless the landlord agreed to a shorter time.
This had led to some students advising in November or December they would not re-lease the flat, leaving little time to find new student tenants, Ms Elliott said.
Ms Seque-Roche said it appeared a lot of rentals losing price were "older stock" or "overpriced".
The situation would be clearer once students started arriving back in town in February.
She believed many students were now renting outside the traditional student area.
"They couldn't find rentals inside of the student area because we couldn't rent them until we found out if the current ones are leaving."
It was a catch-22 process which meant many students were flatting or looking for flats in areas such as South Dunedin, Mornington, St Kilda and other places, she said.
Ms Elliott also suggested students flats might have caused the decrease.
"I've been talking to other property management companies that have the same issue.
"Student rentals often got rented in March, April and May," she said.
"But because students won't tell us either way, we can't say or give them notice that we are going to re-advertise and re-let.
"We have to wait for them to all get their act together and all physically confirm that they're not renewing before we can re-list."
Some students would only advise that they would not re-lease the flat in November or December, causing the properties to be re-listed at potentially lower prices than usual.
"Students are actually wanting higher quality newer rentals as well, as opposed to the older ones which nay not be as attractive any more."
The odd student property had been left vacant after Labour changed the tenancy laws, she said.
