QLD Disability Support group wants to lease for 2-5 years

Hi folks, long time lurker here. Got a freestanding house in Branyan, Bundaberg I've had since 2011. Rents are going off up there right now ($330/wk to $450/wk in 12 mths), but what's interesting is my rental agency has been contacted by a disability support group who is willing to rent the property for 2-5 years at potentially above that rate.

They may need to install hand rails, but TBH I don't have a problem with that and would prefer we don't steer off down that thread.

But really, what's the gotcha here with renting to a disability support group? Is there one? It sounds "too good to be true". Is it just about locking in a rate that is likely to keep increasing?

 

I wouldn't hesitate, I rented one of my industrial units to such a group, the rent was paid promptly every month.
I had to terminate the lease when they began exercise classes on the parking area used by the other 11 tenants. Too much of a risk with commercial vehicles etc using the same area.

 

I have a few like this, it's good.

 

I have a relative that lives in one and they have been there for well over 10 years.

Assuming the property is fit for purpose, these sorts of groups are usually wanting to have stability and are less likely to move, IMO.

 

I would go for it. They will keep an eye on the tenants

 

• The world is going to end, you can lock in a tenant for 3 yrs+ vs changing every 6-12 months (less lost rent) - agent misses out on several letting fees.
• Rents are paid on time without having to listen to the excuses of the cat had kittens, the frog croaked, I am on holiday why should I pay rent when I'm not there etc.
• A few minor modifications may be required (all properties should be accessible - makes for a wider target market).
• Rent increases are written into the lease (but the capacity to pay large increases is capped by government funding). If there are large increases or scarcity then you need to consider this factor.

 

Lease might need to be registered if longer than 3 years.
Get it seen by your friendly solicitor before you sign.
Check who pays for maintenance?
Do you need special electricity for people on a kidney machine etc?
Sounds good to me!
I hope this helps