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Unable to decide on the applicant

Discussion in 'Property Management' started by b7277, 6th Nov, 2015.

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  1. b7277

    b7277 Active Member

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    Property Gurus,

    I am in a deliema and need your help.

    Have a property which is up in the market for rental. Yesterday i got two applications

    1. One applicant has applied for a 4 month lease
    2. Another is a lady with 5 kids, on centrelink, going through a divorce applied for a long term lease.

    I am not sure if i should go with #2 but the advantage is its a long term lease. Just need your opinion on this situation.

    Happy Friday!!
     
  2. BKRinvesting

    BKRinvesting Well-Known Member

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    Long term trouble?
     
  3. FirstIP

    FirstIP Active Member

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    Probably neither! If anything, I'd go with #1.

    5 kids can = a lot more damage to your property; the woman is going through a tumultuous and unstable time in her life - will she even stick around? Can they afford the rent?
     
  4. joel

    joel Well-Known Member

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    Get #2 on Centrepay and you should at least get your rent on time each week.
     
  5. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    Neither are great options.....is your rental large enough to accommodate 5 children.

    Not knowing about your rental property, I would probably opt for number 2......because she will either be supported by husband or receive rental assistance.

    But man oh man - 5 kids. Seriously. Poor things - both mother and children. I couldn't imagine how hard that situation must be.
     
  6. b7277

    b7277 Active Member

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    Its the centrelink and 5 kids the red flag
     
  7. b7277

    b7277 Active Member

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    Good point. @joel i will look into this. havent used centrepay before. Need to figure out how it works. Can the RE agent take care of this part?
     
  8. b7277

    b7277 Active Member

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    It can squeeze one or 2 kids ;) Just kidding. 5 kids and i wonder how she manages. I struggle to keep up with 1.
     
  9. Xenia

    Xenia Adelaide Property Manager Business Member

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    If you do go for the 4 months you will have 4 months to begin marketing for the next tenant.

    for the 12 month one, do background checks of regular payments, mortgage, past rental. Check don't assume.
     
  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    The first is too much hassle - 4 months will pass quickly and then you have to go through the same process of reappointing a tenant.

    Does the mum have rental referees (not private ones - actual property managers)?

    Realistically though - neither (on the surface) sound glowing.

    Cheers

    Jamie
     
    FirstIP likes this.
  11. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    I have 3 boys and praise the lord, I'm in a happy and stable relationship. Both hubby and I are busy managing our work and home lives with little time for anything else. I bow my head to anyone who can and has to do it alone.

    And yes.........before I hear from others about shared parenthood, etc.....the reality is that the parent who has weekenders isn't really bearing the brunt of the day to day responsibility of raising young ones.
     
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  12. joel

    joel Well-Known Member

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    Yes that's what you pay them for!
     
  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    Well hopefully you pay them for a lot more than organising Centrepay.

    If the 12 month applicant is considered can high risk, Centrepay won't help - she can choose to cancel.

    Check affordability criteria and payment history.
     
  14. Azazel

    Azazel Well-Known Member

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    Wait until after the open house on Saturday?
     
  15. WestOz

    WestOz Well-Known Member

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    +1, they can cancel it anytime, regardless to payment conditions being stated on the lease it can't be enforced.

    #1, you'll have letting/inspection fees etc, then do it all again in 4 months, hopefully with no damage/issues etc.

    #2, she could be a great mature mum running a tight disciplined ship teaching the kids right from wrong etc, (only way to know would be seeing how she currently lives but in most cases that doesn't happen) if not its 5 kids (possibly uncontrollable bogans) running around trashing the property, in & out.
    Another consideration (as I've experienced) the marriage may have ended Very badly, the ex/father maybe disgruntled/depressed/abusive, things happen during visitation handover etc, cops involved, restraining orders etc, father doesn't pay child support, mum can't afford general cost of living let alone rent.

    Personally I'd keep fishing for a bit, even if it cost you a month without income the potential for concern/stress/cost would be worth it.
     
  16. b7277

    b7277 Active Member

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    Perth market is not that great at the moment and we have 4-5 open house but turn out was really bad. Sometimes there is no one for viewing. Mine is a 3 bedroom house. Just wondering whats the best option. Do i wait or go ahead with one of them.
     
  17. SeafordSunshine

    SeafordSunshine Well-Known Member

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    What is the Market like in February? Do the rents rise in February? :cool:Is it near a uni? What is the profile of the people who live in that area? Will you have to pay another letting fee? in 4 months? How much extra rent will you need to make up the difference?
    Are the 5 kiddies primary school or secondary? DId they go to that school already?
    Just a few questions to think about to help you crystallise your decision making!
    I hope this helps
     
  18. Ripehouse.com.au

    Ripehouse.com.au Active Member

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    When prospective tenants come right off the bat asking for a long lease I have warning bells. Are they asking for a long lease to give them impression of stability etc etc?
     
  19. WestOz

    WestOz Well-Known Member

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    Oh that makes more sense, assumed from your location it might be a Sydney property, easier market.

    Where is it? post a link to the advert, might be able to give clearer advice.
    How longs it been listed?
     
  20. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    Actually, I rethought your proposition. Take the 4 month lease as long as they are willing to pay a premium on rent. Short term accommodation options are few and expensive.