Join Australia's most dynamic and respected property investment community

Potential tennant - opinion

Discussion in 'Property Management' started by gach2, 22nd Jul, 2015.

  1. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    Notsure if there are any pms on here that give an opinion on a potential renter

    single - 25 years
    Never rented (living with parents or PPOR)
    Formally employed - On unpaid leave
    Own properties (being rented - just negative cf)
    Have cash reserves around 10x total rental costs for 12 months

    Property renting around $250-300pw in surfers paradise

    Notsure about having no reference and being unpaid leave gonna work

    thanks
     
  2. SeafordSunshine

    SeafordSunshine Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    375
    Location:
    Sydney
    As A start, have you asked your agent to check against 'formally employed' Employer?
    Where did they live before? Do they have water gas and electricity bills paid on time?

    I hope this helps?
     
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Perth, WA
    This is golden because the tenant has assets that can't be moved, and that judgments can be enforced against in a worst case scenario.

    I would approve.
     
  4. Pistonbroke

    Pistonbroke Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    395
    Location:
    Guangzhou
    Gotta love the 'living at home/never rented'. & the parental or family support as well as no income.

    My previous experience with these is why are they being kicked out of home?
     
  5. MRO

    MRO Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    163
    Location:
    Perth
    Do property search to confirm his ownership.

    Contact employer for reference.
     
    Esh likes this.
  6. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    ^^ lived with parents then moved into their PPOR - (now become IP)

    this is a potential me in a few months time
    just wondering how i would be treated in the rental world
     
  7. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    Do have the ability to purchase outright (cash) these properties - looks like not the best investment or part of my plan
     
  8. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,474
    Location:
    Sydney
    I've rented to worse applicants than that. Provided they are employed I wouldn't have a problem with it.
     
  9. Lil Skater

    Lil Skater Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    385
    Location:
    Melbourne
    I'd want to know why they're on leave, how long and how long they've been in their employment.

    If they've got cash though, that's a good start.

    Not knowing anything else, I'd consider it - but maybe look at starting with a shorter lease term.
     
  10. Starbright

    Starbright Active Member

    Joined:
    18th Jun, 2015
    Posts:
    40
    Location:
    Sydney
    I previously rented to a family with no rent history or references. They were new migrants, and we're willing to pay 12 months rent upfront. Maybe can ask the question if she has that amount in cash?
     
  11. Kael

    Kael Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    277
    Location:
    Sydney, NSW
    Some "never rented before" comments I see online sometimes reminds me of the "Experience Required" when applying for entry-level jobs... How does one get that experience (or in this case, rental history) without doing it! :p

    Only questions I'd be asking the PM would be:
    1. How long has he/she been employed with that employer?
    2. How long are they expected to be on unpaid leave for? Will they be returning to work soon or changing to paid leave?
    3. Did the PM check their references and if they have none, why do they have no references?
    Awesome that he/she has an investment property... but as you mentioned, it's CF negative. If they are on unpaid leave right now, or worse yet, they quit or become unemployed in the future, how will they be able to pay for your rent while also paying for the IP mortgage?
     
  12. Esh

    Esh Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    192
    Location:
    Sydney NSW
    well looks like making the rental payments wont be a problem for now. What did they present like? The PM would have met them, ask what vibe they got off them? Has it been on the market long? Wish you all the best, hope it gets leased out soon (to a good tenant)
     
  13. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,722
    Location:
    Perth
    In the past my PMs have contact employers and discussed the person. In my experience, this has been a reliable way of gauging the quality of tenants. I can't guarentee it as a strategy of course.
     
  14. Kael

    Kael Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    277
    Location:
    Sydney, NSW
    My PM's do that too but I think it's important that they relay what they've found out to the landlord. I'm not sure if the OP's PM did that.
     
    Lil Skater and Perthguy like this.
  15. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Yeah, you would need the PM to clarify why they're are on unpaid leave and if they definitely have a job to go back to. Is it voluntary or disciplinary?
     
  16. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,123
    Location:
    FNQ
    Yes, why unpaid leave at 25? Sounds strange unless they are studying fulltime for a semester etc. Maybe just look for a little more information, they have plenty of funds so that shouldn't be a problem.
     
  17. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    Sorry if I have confused some of you guys but the potential tenant is myself. I am planning on renting in October and just wanted some feedback.

    Reason for leave was to move interstate for a break of 6 months (I dont believe 6 months is an issue for rentals of studios/1 bedders). Also to work on my portfolio in QLD.

    I lived with my parents till i was 23 (If i moved out at 18, id be on ACA/Today Tonight/ Newspapers whinging like a baby that i never will be able to afford a house in Sydney) - moved into PPOR till now (though i still spend most of time at my parents - prefer family lol).

    Looks like its quiet 50/50 on whether im ok or not

    Since posting have found out one of the selling agent (also principal of his little agency) i have dealt with, does get a limited amount of potential suitable properties for rent. If i have a hard time maybe i should start liaising with selling agents (for references) if the PMs do not take me seriously.

    Usually do not get taken serious by selling agents either until contracts/offers/purchases are made.
     
    Lil Skater likes this.
  18. Samten

    Samten Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    275
    Location:
    Sydney
    Classic, how we read things and make assumptions, everyone has read this as you having a tennant applying:D
     
    Perthguy likes this.
  19. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    did mention it a few posts down but it was a little message so yea can see how it could have been missed
     
  20. gach2

    gach2 Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    213
    Location:
    sydney
    but it shouldn't make a difference whether its me or anyone else in similar circumstances