VIC Getting the right tenant given new tenancy laws?

I'm about to put my unit on the rental market. It will have a fresh make over and will have new carpet paint etc. But a new tenant can ruin that easily.

But my agent says new tenancy laws means we can't advertise it with no pets or favor smaller families.

Any help/suggestions on getting the tenant you want?

 

When the applications come in select the applicants that have no pets or children.

 

Sure. But what if no applicants fit that criteria?

 

You can wait for one that suits or accept what is on offer.

 

I don’t really understand - you want your unit with the fresh make over to stay fresh forever?

What about the part where tenants will live there and use stuff?

 

Landlord insurance and a GREAT PM....
Even then some tenants tend to abuse not use

In 30 years I've only known 2 tenants who respected the rental like they owned it (some tenants have the rental car attitude ), and both were very long term tenants who after 15 years enjoyed well below market rent because of their care and respect toward the properties

 

The leasing process is the same as it's always been, but now you might just have less appetite for risk with the applicants. If you're not getting the exceptional applicant you want, you might need to drop the rent or consider making any other changes necessary to make the property more attractive to that type of value-conscious tenant. Alternatively if it's not worth it for you to do those things, you may need to consider a less 'perfect' applicant.

 

At the end of the day, only select the applicants you prefer. It's your asset. You decide. I'll be dammed if I'm gonna let any external factor choose my tenants other than myself and my pm. Ain't happening. And be sure to be a fair and responsible landlord to your tenants. Neglectful and cheap LL are morons imo. Most reasonable tenants will appreciate it. If they prove to be nightmares, (carefully) get rid of at end of lease and get new ones. Landlords should never feel forced to keep nightmare tenants.

And make sure you have the proper insurances.

 

Thanks. This question but specifically Victoria, my property manager has told me that we can no longer advertise a property as no pets allowed or even put a pet deposit.

Nor can we choose a tenant we think is better suited to the property which is smaller and in close proximity to the other units.

 

You don't need to advertise it. Just choose which applications you prefer once vetted by PM. If PM is too problematic,.I'd be getting a new one. I had to do that with 1 property in Vic, got a new PM who was great. The old one came across as basically anti LL.

 

We have 3 Vic properties.
Technically the PM is advising you as consumer law in respects to discrimination. As per Unlawful discrimination in renting.
However in practice The Landlords will choose the tenant that they prefer (often on PMs recommendation) - that has best references, rental history or suits their property or has best application etc.
if you said to your PM “ I want someone with no kids or pets” then they may respond that “that’s not allowed” so they are not breaking the rules. Perhaps they are inexperienced or perhaps they have had an issue in the past with this.
You would certainly not tell someone that they were unsuccessful because they had children or pets.
In the end you make the decision and you don’t have to tell anyone why you made that decision.

Even if your tenant applies initially with no Pet then then they may apply after they move in and unless there is a very strong justification that it’s not suitable for that pet you can’t reject the request. And even the best applicants or even smallest families can turn out to be bad tenants.
And Make sure you have appropriate insurance.

 

What insurance specifically are you looking for?

 

Landlord insurance. In addition to the above advice, make sure that there's a very comprehensive condition report with a lot of pictures.

 

I'd be a lot more concerned about my modern house than the older one. I wonder if it would be more risk averse to sell the new build and rent the old one.

 

That depends on a number of factors such as short-term and long-term goals, cashflow, equity, risk profile and more. Further and better particulars are needed to provide informed advice.

 

What type of tenants have you had the most success with for your 3 properties and what did you look for in their application?

Have you had instances of good tenants who turned out to be bad tenants after they got a pet/more children?

 

A “Bad” tenant without a pet can be more dangerous and harmful to both your property & your income, and may end up making a hole in your pocket.

Why not tell your PM your expectation of a potential tenant so that they can work with you to ensure you & the agent are covered from consumer law perspective whilst you still get it done your way.

PM is expected to be fair, but let’s be serious they get paid by the landlord not tenants. You don’t want to engage PM who is not on your side that’s all.

 

As a PM in Victoria we give all the details we can find about each applicant (including links to social media pages if we can find them) And provide our recommendation to the owner. Owner then chooses the applicant that suits them best. Anyone who lies on their application though we strongly recommend declining without further investigation - it's not worth it.

Pets - if applicants are up front about the pets, and if they have rental history, they're generally good tenants. Those who don't have pets and randomly choose to get one for the first time or lied about having a pet - they're the ones you need to look out for.

 

Thanks Michelle. I appreciate your informed opinion. In Victoria can you advertise a property with "no pets"? Can you also ask for pet deposit?

Thanks again.

 

You can't advertise 'no pets' but as others have mentioned, you choose an applicant that suits your needs. You never tell an applicant why they were declined (As an agent at any rate - it generally opens the door to grief! ... though I broke this rule last week as an applicant had blatantly lied about his rental reference, said it was private, but we got the reference from the agent, he came clean after we called him out on it but by then, too late).

Also, no pet deposit, you can ask for an additional bond for alterations (To cover the restoration of an alteration the tenant wants to make), but not for pets.

Some insurance companies now cover pet damage so you can cover yourself somewhat.