RentEstimate
An estimated rental range for an individual home.
Calculated from rental listings and homes.co.nz’s property dataset, it is a starting point in determining a home’s rental value and is not a formal rental assessment. The RentEstimate is calculated monthly.
The RentEstimate range shows the high and low estimates of what a property could rent for. The RentEstimate is a computer generated estimate based upon public data and rental listings of similar properties.
This is a starting point in determining the weekly rent for a specific property. We encourage potential renters and landlords to supplement this information by doing additional research such as:
- Talking to a local Real Estate Agent or Property Manager for more detailed information
- Comparing the rental to other nearby rentals on homes.co.nz
- Visiting the potential rental (whenever possible)
For some properties, the RentEstimate is not yet available. This occurs if there is insufficient data available to generate an accurate estimate. This is more likely to be properties at the top end of the market (where few rentals exist) or in smaller towns.
The RentEstimate is a starting point in figuring out the rental price for a property. Check to see if the details of your property on homes.co.nz are correct as inaccurate RentEstimates may occur if the council data or the HomesEstimate are not up-to-date. Track your home to update your property's details.
If you still feel the RentEstimate range is not quite right, you can update the range by sending us:
- Proof-of-rental (e.g. a Tenancy Agreement with all tenant’s details removed)
- Providing a rent appraisal from a local Real Estate Agent or Property Manager
We use our weekly RentEstimate average and multiply it by 52 weeks, then divide by the average HomesEstimate. This doesn't factor in expenses or periods that the property may be unoccupied.
Example:
A property with a RentEstimate of $400 to $500 per week has a HomesEstimate of $450000. The Rental Yield would be 5.2% ([$450*52]/$450000)
The RentEstimate range depends on the availability and accuracy of similar rental listings and council data. For example, the number of rental listings in a region affects how much we know about rental prices of properties in that area. The more rental listings we have, the more data we have to work with and the more accurate the RentEstimate will be.
Below is a table showing the latest accuracy of RentEstimates:
| Median Error | Within 10% | Within 20% | |
|---|---|---|---|
| 7.16% | 63.04% | 86.60% | |
| Christchurch | 7.21% | 62.68% | 86.37% |
| Wellington | 8.98% | 53.56% | 79.23% |
| Hamilton City | 5.81% | 74.87% | 93.26% |
| Tauranga City | 5.43% | 74.78% | 91.79% |
| Dunedin City | 10.38% | 47.93% | 74.79% |
| Hutt City | 12.79% | 38.14% | 75.77% |
| New Plymouth District | 7.92% | 61.87% | 87.77% |
| Whangarei District | 5.42% | 79.78% | 92.13% |
| Palmerston North City | 6.43% | 75.00% | 94.05% |
| Invercargill City | 7.96% | 58.54% | 85.37% |
| Waimakariri District | 4.15% | 86.30% | 97.26% |
| Nelson City | 5.71% | 76.39% | 94.44% |
| Rotorua District | 7.74% | 63.38% | 92.96% |
| Hastings District | 9.29% | 52.11% | 77.46% |
| Queenstown Lakes District | 57.80% | 5.63% | 12.68% |
| Selwyn District | 3.75% | 81.43% | 97.14% |
| Kapiti Coast District | 6.63% | 64.62% | 89.23% |
| Napier City | 7.81% | 61.02% | 83.05% |
| Upper Hutt City | 7.74% | 60.00% | 98.18% |
| Porirua City | 6.26% | 68.09% | 91.49% |
| Waikato District | 8.09% | 58.54% | 82.93% |
| Ashburton District | 4.69% | 60.98% | 92.68% |
| Tasman District | 7.56% | 67.57% | 89.19% |
| Timaru District | 5.68% | 67.65% | 94.12% |
| Thames-Coromandel District | 20.58% | 27.27% | 48.48% |
| Taupo District | 4.94% | 73.33% | 90.00% |
Median Error:
The median percentage difference between a property’s weekly rent price and the RentEstimate.
Within 10%:
This is the percentage of rental transactions in a region for which the RentEstimate fell within 10% of the subsequent rent price.
Within 20%:
This is the percentage of rental transactions in a region for which the RentEstimate fell within 20% of the subsequent rent price.
Example:
RentEstimate of $600 to $700 per week has recently been rented for $690 per week. In this case the difference between the centre of the RentEstimate range ($650 per week) and the rental price is 6.2% ([$690-$650]/$650). This RentEstimate will fall within category "RentEstimate within 10%"