seeking pm's perspectives: would you rent to...

Friends elderly parents live overseas and have become Australian Permanent Residents (but not citizens - yet). They want to move to Australia and spend 6-9 months here each year; they want to lease a small apartment but have no Australian source of income. (they do have overseas income but I'm assuming that's hard to assess)

Their options are - either friend leases in her name - they don't want to do this since friend won't really be living there, but she could disclose on application that it's for her parents?
Or - they could apply in their own names but mention friend will be paying all rent, along with statement and financials from friend

Would either of these approaches work?

They could probably pay a few months' rent in advance if that would help with their application...

 

Adding to clarify - they're looking for long-term ongoing rental (ie annual, renewed) since they might move here for longer or permanently. Basically they'd be living in the rental but going on holidays every month or so like a local retiree.

Properties they're looking at are in the 400pw range; friend's income is approx 10x that.

 

Me personally, would accept the application. Firstly, they're eldery so unlikely to be having wild parties at all hours of the night.

 

Selection criteria is basically summed up by ability to pay the rent and maintain the property. There are many ways an applicant can mitigate financial risk if they don't have a traditional source of income (such as a job), examples might include voluntarily offering to pay amounts up front, and/or securing a guarantor. A Lessor/Agent should refer back to the minimum requirements of the Landlords Insurance Policy to understand why steps should be taken to ensure there's a good chance of success should a claim need to be made later on. Nothing in the (Qld) RTRA Act details requirements for how an application should be checked (what due diligence should be performed), it only states the two criteria that an application can be assessed on.

 

Thanks Michael! I think this is very useful. So it would be helpful if my friend were joint applicant on the lease? Or if she were the only applicant?

edit to add - rereading, I guess she could also be listed as the guarantor?

 

I'd do it.

 

I’d put them on the application, with an offer for your friend to go on the lease should the landlord want it for additional security. I’ve had tenants like this, they’re usually really low maintenance so I don’t see an issue so long as they can afford it.

 

Have you seen the oldies around our way. There was no-one under 50 at last night's Nick Cave & Warren Ellis gig. (not all of the oldies would be into Birthday Party though).

 

Funnily enough, I was staying at a CBD hotel about a week and a half ago, and when I bowled into get breakfast on level 30-something, (and the chef did a great omelette at that place...), Nick Cave was making himself a coffee at the buffet.... a bit surreal, but sort of cool at the same time.

 

Mixing it with rock royalty?

 

Only momentarily, given most turn back into pumpkins at 11am or so on the checkout day.

 

So long as they can demonstrate that they can afford the rent, I shouldn't think it would be an issue where that money is coming from. (Aside from drug money obviously ).

 

Thanks everyone who replied! Have passed the message on to my friend, who feels reassured