January 19, 2026
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It’s no secret that many homeowners across New Zealand are struggling to sell right now. For those facing this, it’s natural to start looking at renting as the next sensible step.
As property managers, we’re seeing this come up more and more. But as we tell our clients, renting isn’t something to jump into just because you’re over the sales process. It can be a smart Plan B, but only if the rent, the costs, and your own timeframe line up.
In this post, we’ll step through the realities of the current market and the key checks to make before you switch gears, so you can choose your next move with clarity.
The state of the NZ property market
Right now, the New Zealand property market is in a tough spot. Even good properties are taking longer to sell, and many owners are discovering that the price they want just isn’t matching what the market is prepared to pay.
A big reason for that is timing. A lot of owners bought during the post-COVID boom, and they’re trying to sell now either because plans have changed or out of necessity. But the prices just aren’t there anymore.
On the ground, that’s showing up in a pretty predictable way. Properties sit on the market for months, and the offers that come through are often lowball attempts. Buyers know the market is softer, so they try their luck, coming in well under asking. After a while, sellers get worn down by the gap between expectation and reality. Some can’t stomach the offers they’re getting, and instead of accepting a price that feels like a loss, they decide to pause.
Is renting the next step when you can’t sell your home?
Many homeowners consider renting out their property when selling isn’t a viable option in the current market. For most, this isn’t the dream plan, but the next best option to help cover some of the holding costs, reduce financial pressure, and buy time.
However, whether this works is all dependent on your situation. Renting is only a smart strategy if it eases pressure, not adds to it. For example, it can make sense if the rent would cover a good portion of your regular costs and you’re comfortable holding the property for a while longer. But it may not be worth it if the rent wouldn’t come close to covering the mortgage and bills, or if it would strain your cash flow.
The key is to make this decision strategically, making sure the numbers, timing, and your longer-term plans all align.
How to evaluate if it’s worth renting (and what to do before committing)
There are a few key steps you’ll need to work through before you decide to rent out your property.
Get a rental appraisal first
It can be easy to assume that renting will cover the mortgage or at least buy you time. But the only way to know that is through real market evidence rather than guesswork.
Before you make any call on renting, the single most useful first step is getting a proper rental appraisal from a property manager. Not a quick online estimate, but a real, evidence based appraisal.
An appraisal tells you what your property would actually rent for in today’s market, based on comparable rentals and current demand. This is really important for setting realistic expectations.
An appraisal will tell you:
- A realistic rental price range for today’s market
- The key features of your home that affect rental value
- Pricing backed by MBIE rental data
Rental appraisals are completely free, so there is no risk involved in getting one. It is also bank and mortgage broker-ready, which can be helpful if you want to use the projected rental income to support another application for another mortgage or property.
Learn how property managers calculate rental appraisals.
Is your home in the best state to sell?
When a property comes off the sales market and heads back into renting, owners often underestimate how much “resetting” is needed. A home can look open-home ready but still not be tenant-ready.
If a house has been unoccupied for months without being cleaned, dust builds up, kitchens and bathrooms usually need a proper wipe-down, and outdoor areas need attention. Lawns that were only mown once during a long sales campaign, or hedges left untidy, can make a place feel neglected fast.
Fixing up all these issues will cost you time and money, so it’s important to factor it in before you commit.
Don’t forget Healthy Homes compliance
Once you’ve sized up the obvious rent-ready jobs, there’s one more potential cost people don’t expect: Healthy Homes compliance. Owner-occupied places can look fine but still fail an assessment, meaning extra upgrades before you can rent.
This is why getting a property manager early is so important. They’ll appraise the rent and flag what needs doing (including compliance) before you commit.
Crunch the numbers
Once you know what your property could rent for and how much maintenance work is required, you can start crunching the numbers, keeping your mortgage repayments in mind. This is usually where the decision becomes clear, and you’ll know whether renting gives you breathing room, or whether it’s going to become another source of stress.
Consider your timeframe
You should also be honest about how long you’re prepared to hold the property. Most tenants want stability, and a standard lease is 12 months. At the moment, many owners are renting for 12–18 months while they wait to see if the market improves, which can work well, but only if your own timeline matches that reality.
So ask yourself:
- Can I commit to renting for at least a year?
- Is this a bridging move while I wait to sell later?
- What’s my review point, and what will I do if the market hasn’t shifted by then?
If you know upfront that you might want to sell again in six months, renting may create more stress than it solves. But if you can give it a clear 12–18 month window (with a planned reassessment), renting becomes a much more workable, stable option for both you and your tenants.
Should you rent your home while still trying to sell it?
Once you’ve decided to rent out your property, it’s best to take a clean break from the sales campaign.
Selling your house while it’s tenanted is a big no-no. Many owners try to have the best of both worlds, which is one of the biggest mistakes you can make. They keep their home listed with a “for sale” sign out front, while also showing tenants through. But from a tenant’s point of view, that’s a red flag. They walk in and think, “Hang on, is this place for sale? Is the landlord going to sell again in six or twelve months? Am I just moving in here as a stopgap?” That uncertainty puts good renters off.
So our advice is: once you’ve realised your property isn’t selling and you’re going to put it on the rental market, take it off the sales market completely. From there, your property manager can take the reins by setting the rent, finding and screening tenants, and managing inspections. That way, the property is treated as a proper long-term rental, and you’re not left juggling decisions, paperwork, and day-to-day demands while you work out your next move.
Time to decide what’s the next for your property
Need help working out whether renting out your property is right for you? Harper Properties can walk you through it step by step, starting with a free rental appraisal. Book yours online today or give us a call at 09 361 2810 for a no-pressure chat about your options.