Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Yes, the analysis of Wellington's property market is included in our pack
Everything you need to know about renting out residential property in Wellington as a foreigner, including yields, costs, regulations, and neighborhood performance, is covered in this guide.
We constantly update this blog post to reflect the latest data and regulatory changes affecting foreign landlords in Wellington.
This article is written as of early 2026, so all figures, rules, and market conditions reflect that period.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Wellington.
Insights
- Wellington gross rental yields sit between 3.5% and 4.5% in 2026, which is lower than Auckland apartments but comes with steadier government-sector tenant demand.
- Non-resident landlords in Wellington must obtain an IRD number to legally collect and report rental income, even if they never set foot in New Zealand.
- Wellington's Healthy Homes standards mean landlords often spend NZ$2,000 to NZ$5,000 upfront on heating and ventilation upgrades before renting out.
- Short-term rental occupancy in Wellington averages around 51%, which is moderate compared to Queenstown's tourism-driven peaks but steadier year-round.
- Newtown, Kilbirnie, and Berhampore offer Wellington's best rental yields because purchase prices are 20% to 30% below premium suburbs while rents stay competitive.
- Wellington landlords can only increase rent once every 12 months with 60 days' notice, making annual cash flow planning more predictable than in unregulated markets.
- Body corporate fees for Wellington apartments often run NZ$300 to NZ$700 per month, which can cut net yields by a full percentage point compared to standalone houses.
- Furnished rentals in inner Wellington suburbs like Te Aro and Thorndon can command 15% to 25% higher rents due to demand from relocating government contractors and visiting academics.
Can I legally rent out a property in Wellington as a foreigner right now?
Can a foreigner own-and-rent a residential property in Wellington in 2026?
As of early 2026, foreigners who legally own residential property in Wellington can rent it out without any additional restrictions because New Zealand does not prohibit foreign landlords from operating rental businesses.
The main ownership structures available to foreigners include direct freehold ownership (if eligible under overseas investment rules), purchasing through a New Zealand-registered company, or buying as an Australian or Singaporean citizen who benefits from treaty exemptions.
However, the most common barrier is the purchase itself, since many overseas persons cannot buy existing residential homes in Wellington without meeting specific tests such as being "ordinarily resident" in New Zealand or obtaining Overseas Investment Office consent for high-value properties.
If you're not a local, you might want to read our guide to foreign property ownership in Wellington.
Do I need residency to rent out in Wellington right now?
No, you do not need New Zealand residency to rent out a property in Wellington because non-resident owners can legally earn and report NZ-sourced rental income under Inland Revenue rules.
That said, you will need a New Zealand IRD number to file tax returns and pay the correct amount of tax on your Wellington rental income, which you can apply for from overseas.
While a local bank account is not strictly required by law, it is strongly recommended because tenants and property managers in Wellington overwhelmingly prefer paying rent into a New Zealand account, and it simplifies your tax records.
Managing a Wellington rental entirely from overseas is practical if you hire a local property manager, who will handle tenant screening, rent collection, maintenance, and compliance with Healthy Homes standards on your behalf.
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What rental strategy makes the most money in Wellington in 2026?
Is long-term renting more profitable than short-term in Wellington in 2026?
As of early 2026, long-term renting is generally the more profitable and lower-risk strategy for most foreign landlords in Wellington because it offers steadier income with fewer operational headaches than short-term letting.
A well-managed long-term rental in Wellington might generate around NZ$32,000 per year (roughly USD 17,500 or EUR 16,500), while a comparable short-term rental could gross NZ$38,000 to NZ$45,000 (USD 21,000 to 25,000 or EUR 20,000 to 23,500) but with significantly higher costs for cleaning, furnishing, utilities, and potential GST obligations.
Short-term renting tends to outperform financially in Wellington's inner suburbs like Te Aro, Thorndon, and Mount Victoria, where corporate relocations, visiting academics, and conference attendees create consistent demand for furnished, flexible stays.
What's the average gross rental yield in Wellington in 2026?
As of early 2026, the average gross rental yield for residential properties in Wellington sits between 3.5% and 4.5%, which places Wellington in the middle range among New Zealand's main cities.
The realistic range spans from around 2.8% for premium waterfront properties in Oriental Bay to approximately 5.5% for well-located apartments in more affordable suburbs like Newtown or Kilbirnie.
Smaller properties like studios and one-bedroom apartments in Wellington typically achieve the highest gross yields because they rent at a higher rate per square meter while costing less to purchase than larger family homes.
By the way, we have much more granular data about rental yields in our property pack about Wellington.
What's the realistic net rental yield after costs in Wellington in 2026?
As of early 2026, the average net rental yield after all operating costs for residential properties in Wellington falls between 2.2% and 3.2%, assuming professional management and proper maintenance.
Most Wellington landlords actually experience net yields ranging from 1.5% at the low end (premium suburbs with high body corporate fees) to around 3.8% at the high end (well-managed houses in yield-focused neighborhoods).
The three main cost categories that specifically erode Wellington yields are council rates (which run NZ$300 to NZ$500 monthly and are notably high compared to other New Zealand cities), Healthy Homes compliance upgrades (heating, insulation, ventilation required for Wellington's damp climate), and property management fees (typically 8% to 10% of rent plus GST for overseas owners who cannot self-manage).
You might want to check our latest analysis about gross and net rental yields in Wellington.
What monthly rent can I get in Wellington in 2026?
As of early 2026, typical monthly rents in Wellington are approximately NZ$2,300 (USD 1,250, EUR 1,200) for a studio, NZ$2,800 (USD 1,550, EUR 1,450) for a one-bedroom, and NZ$3,500 (USD 1,900, EUR 1,800) for a two-bedroom apartment in reasonably central locations.
A decent entry-level studio in Wellington rents for between NZ$2,100 and NZ$2,500 per month (USD 1,150 to 1,350, EUR 1,100 to 1,300), depending on whether it includes parking and how close it is to the CBD.
A typical mid-range one-bedroom apartment in Wellington commands NZ$2,500 to NZ$3,100 per month (USD 1,350 to 1,700, EUR 1,300 to 1,600), with the higher end applying to newer buildings or inner suburbs like Te Aro and Mount Victoria.
A standard two-bedroom apartment in Wellington rents for NZ$3,100 to NZ$4,000 per month (USD 1,700 to 2,200, EUR 1,600 to 2,100), with premiums for features like a second bathroom, secure parking, or harbor views.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Wellington.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Wellington in 2026?
What's the total "all-in" monthly cost to hold a rental in Wellington in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Wellington ranges from NZ$800 to NZ$1,350 (USD 440 to 740, EUR 420 to 700) for a house or townhouse, and NZ$1,100 to NZ$2,050 (USD 600 to 1,100, EUR 570 to 1,070) for an apartment with body corporate fees.
The realistic range covers most standard Wellington rentals, with the lower end representing well-maintained houses in outer suburbs and the higher end covering apartments with significant body corporate levies or older properties requiring frequent repairs.
Council rates are typically the largest single contributor to monthly holding costs in Wellington, running NZ$300 to NZ$500 per month depending on the property's capital value and targeted rates, which is notably higher than many other New Zealand cities.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Wellington.
What's the typical vacancy rate in Wellington in 2026?
As of early 2026, the typical vacancy rate for rental properties in Wellington translates to approximately 3 to 6 weeks of vacancy per year for a well-priced property, which equates to a 6% to 10% annual vacancy rate.
Wellington landlords should budget for 1 to 1.5 months of vacancy per year if they price competitively and respond quickly to maintenance requests, or up to 2 months if they are overseas owners who are slower to make decisions or have overpriced listings.
The main factor causing vacancy rates to vary across Wellington neighborhoods is proximity to the CBD and public transport, since tenants prioritize easy commutes and will pay premiums for walkable locations like Te Aro, Thorndon, and Mount Victoria while taking longer to fill vacancies in outer suburbs.
Tenant turnover in Wellington typically peaks in late January through March, coinciding with the university academic year start and the post-holiday job relocation season, making December and early January slower months for finding new tenants.
We have a whole part covering the best rental strategies in our pack about buying a property in Wellington.
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Where do rentals perform best in Wellington in 2026?
Which neighborhoods have the highest long-term demand in Wellington in 2026?
As of early 2026, the three Wellington neighborhoods with the highest overall long-term rental demand are Te Aro, Mount Victoria, and Thorndon, all of which benefit from walkability to the CBD and strong appeal to young professionals and government workers.
Families looking for long-term rentals in Wellington concentrate in Karori, Khandallah, and Ngaio, where larger homes, good schools, and quieter streets make these suburbs consistently popular despite being further from the city center.
Students create strong rental demand in Kelburn (closest to Victoria University of Wellington's main campus), Aro Valley, and parts of Newtown, where affordable shared housing and easy access to university facilities drive year-round occupancy.
Expats and international professionals in Wellington tend to rent in Oriental Bay, Mount Victoria, and Thorndon, where furnished apartments, harbor views, and proximity to embassies and corporate offices command premium rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Wellington.
Which neighborhoods have the best yield in Wellington in 2026?
As of early 2026, the three Wellington neighborhoods offering the best rental yields are Newtown, Kilbirnie, and Berhampore, all of which combine relatively affordable purchase prices with solid rental demand from working professionals and students.
Gross rental yields in these top-yielding Wellington neighborhoods typically range from 4.2% to 5.5%, compared to 2.8% to 3.5% in premium suburbs like Oriental Bay or Roseneath.
The main characteristic allowing these neighborhoods to achieve higher yields is their position just outside the premium belt, meaning purchase prices are 20% to 30% lower than central suburbs while rents stay competitive because tenants still enjoy reasonable commute times and good amenities.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Wellington.
Where do tenants pay the highest rents in Wellington in 2026?
As of early 2026, the three Wellington neighborhoods where tenants pay the highest rents are Oriental Bay, Mount Victoria, and Thorndon, all commanding significant premiums over the citywide median.
A standard two-bedroom apartment in these premium Wellington neighborhoods typically rents for NZ$4,000 to NZ$5,500 per month (USD 2,200 to 3,000, EUR 2,100 to 2,850), compared to NZ$3,100 to NZ$3,800 in average suburbs.
The main characteristic driving these high rents is the combination of harbor views, flat walking access to the CBD, and heritage character buildings, which together create a lifestyle premium that Wellington tenants are willing to pay for despite the city's generally moderate rents.
Tenants in these highest-rent Wellington neighborhoods are typically senior government officials, embassy staff, corporate executives on relocation packages, and high-income couples without children who prioritize location and lifestyle over space.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of New Zealand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Wellington in 2026?
What features increase rent the most in Wellington in 2026?
As of early 2026, the three property features that increase monthly rent the most in Wellington are effective heating (especially heat pumps), double glazing, and off-street parking, all of which directly address Wellington's notoriously windy, wet, and parking-scarce conditions.
A quality heat pump system in Wellington can add a 10% to 15% rent premium because tenants know their power bills will be lower and their home will actually stay warm during the city's cold, damp winters.
One commonly overrated feature that Wellington landlords invest in but tenants rarely pay extra for is high-end kitchen appliances, since most renters prioritize warmth and dryness over premium cooking equipment in a city where heating costs dominate household budgets.
An affordable upgrade that provides strong returns for Wellington landlords is installing a bathroom extractor fan and ensuring adequate ventilation, which costs under NZ$500 but helps meet Healthy Homes standards and signals to tenants that the property will stay mold-free.
Do furnished rentals rent faster in Wellington in 2026?
As of early 2026, furnished apartments in inner Wellington suburbs like Te Aro, Thorndon, and Mount Victoria typically rent 1 to 2 weeks faster than unfurnished equivalents because they attract relocating professionals and visiting academics who need immediate move-in options.
Furnished rentals in Wellington command a rent premium of approximately 15% to 25% over unfurnished properties, though this premium comes with higher wear-and-tear costs and the need to replace furniture every few years.
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How regulated is long-term renting in Wellington right now?
Can I freely set rent prices in Wellington right now?
Wellington landlords have complete freedom to set the initial rent price at whatever level the market will bear, with no government cap or approval required when signing a new tenant.
However, once a tenancy is established in Wellington, rent increases are limited to once every 12 months and require at least 60 days' written notice, though there is no cap on the actual amount of the increase as long as it reflects market rates.
What's the standard lease length in Wellington right now?
The most common lease arrangements in Wellington are either periodic tenancies (rolling month-to-month with no fixed end date) or fixed-term tenancies of 6 to 12 months, with periodic tenancies being slightly more common for established landlords.
Wellington landlords can legally require a security deposit (called a "bond" in New Zealand) of up to 4 weeks' rent, which works out to approximately NZ$2,500 to NZ$3,500 (USD 1,350 to 1,900, EUR 1,300 to 1,800) for a typical apartment.
At the end of a tenancy in Wellington, the bond must be lodged with Tenancy Services (not held by the landlord), and both parties must agree to its release or apply to the Tenancy Tribunal if there is a dispute over deductions for damage or unpaid rent.
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Wellington in 2026?
Is Airbnb legal in Wellington right now?
Short-term rentals like Airbnb are generally legal in Wellington, with no citywide ban or blanket prohibition on renting your property to visitors for short stays.
Wellington does not have a simple universal "Airbnb license" requirement, but depending on your property's zone and the scale of your operation, you may need resource consent under the District Plan if your use qualifies as "visitor accommodation" rather than residential.
Unlike cities such as London or Amsterdam, Wellington does not impose a strict annual night cap like "90 nights per year," though planning rules may effectively limit intensive short-term use in certain residential zones.
The most common consequence for operating a non-compliant short-term rental in Wellington is enforcement action by the Wellington City Council, which can include fines and orders to cease the activity if you are operating visitor accommodation without required consent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Wellington.
What's the average short-term occupancy in Wellington in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Wellington sits at approximately 51%, which is moderate compared to tourism hotspots like Queenstown but reasonably steady throughout the year.
The realistic occupancy range for Wellington short-term rentals spans from around 35% for poorly located or poorly reviewed properties to 70% or higher for well-managed listings in prime inner-city locations with strong reviews.
Wellington short-term rentals typically see their highest occupancy rates from November through March (summer season) and during major events like the Wellington Sevens rugby tournament, Beervana festival, and World of Wearable Art show.
The lowest occupancy months for Wellington short-term rentals are typically June through August (winter), when visitor numbers drop and the cold, wet weather makes the city less appealing to leisure tourists.
Finally, please note that you can find much more granular data about this topic in our property pack about Wellington.
What's the average nightly rate in Wellington in 2026?
As of early 2026, the average nightly rate for short-term rentals in Wellington is approximately NZ$123 (USD 68, EUR 64), though this varies significantly by property type, location, and season.
The realistic nightly rate range for Wellington short-term rentals spans from NZ$80 to NZ$100 (USD 44 to 55, EUR 42 to 52) for basic studios in outer suburbs to NZ$180 to NZ$250 (USD 100 to 140, EUR 94 to 130) for well-appointed apartments in prime locations like Oriental Bay or Te Aro.
The typical nightly rate difference between peak season (December to February) and off-season (June to August) in Wellington is around NZ$30 to NZ$50 (USD 16 to 28, EUR 16 to 26), with savvy hosts adjusting prices dynamically for major events.
Is short-term rental supply saturated in Wellington in 2026?
As of early 2026, the Wellington short-term rental market is competitive but not fully saturated, with mid-range occupancy rates around 51% indicating there is still room for well-differentiated listings to succeed.
The number of active short-term rental listings in Wellington has been relatively stable over the past year, neither surging nor declining dramatically, which suggests the market has reached a mature equilibrium.
The most oversaturated Wellington neighborhoods for short-term rentals are Te Aro and the CBD fringe, where high listing density means properties compete heavily on price, reviews, and amenities to maintain bookings.
Neighborhoods in Wellington that still have room for new short-term rental supply include Miramar (near the airport and Weta Workshop), Petone (across the harbor with good transport links), and Seatoun (beachside appeal with less competition).
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Wellington, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| LINZ (Land Information New Zealand) | Official NZ government agency that administers overseas investment rules. | We used it to define who counts as an "overseas person" and who can legally buy residential property. We also used it to separate buying restrictions from renting-out permissions. |
| Inland Revenue (IRD) | New Zealand's official tax authority setting landlord compliance rules. | We used it to confirm non-residents can earn NZ rental income and what tax obligations apply. We also used it to explain IRD number requirements and deductible expenses. |
| Tenancy Services | Government regulator providing official tenancy law guidance. | We used it for rent increase rules, bond limits, and Healthy Homes standards. We also used their data hub for rental bond statistics and market activity signals. |
| Trade Me Rental Price Index | New Zealand's dominant rental listings marketplace with transparent methodology. | We used it to anchor Wellington rent levels and track market direction. We also used it to identify neighborhood-level rent variations. |
| QV (Quotable Value) | Major established NZ property data provider used by media and industry. | We used it to anchor Wellington purchase price levels for yield calculations. We also used it to track property value trends over time. |
| Cotality (CoreLogic NZ) | Top-tier property analytics provider with hedonic index methodology. | We used it to triangulate Wellington pricing trends alongside QV data. We also used it to confirm the "flat-to-soft" market conditions in late 2025. |
| AirDNA | Widely used short-term rental data provider with transparent metrics. | We used it to estimate Wellington Airbnb occupancy rates and nightly rates. We also used it to assess market saturation and competitive dynamics. |
| Wellington City Council | Official city authority for rates, planning rules, and local regulations. | We used their rates documents to estimate monthly holding costs. We also referenced the District Plan for short-term rental zoning considerations. |
| Reserve Bank of New Zealand | Central bank setting the official cash rate that drives mortgage pricing. | We used it to ground financing assumptions when discussing net yields. We also used it to provide factual context on early 2026 interest rate conditions. |
| MBIE Accommodation Data Programme | Government-backed accommodation demand data used by the tourism sector. | We used it to cross-check Wellington accommodation health against AirDNA data. We also used it as a second lens on occupancy trends. |
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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