Will Covid-19 affect your tenant choice in regards to what industry they work in?

Discussion in 'Property Management' started by Jazcat, 10th Apr, 2020.

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  1. Jazcat

    Jazcat Member

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    Personally I would be looking to avoid renting out to anyone in a heavily effected industry for at least the next 2-3 years or a vaccine is developed.
    Because we cant be sure it wont come back around again once we get the all clear.
    Am I been overly cautious?
     
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  2. thatbum

    thatbum Well-Known Member

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    Probably. You're assuming your tenant is going to be one of the first affected.
     
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  3. Jazcat

    Jazcat Member

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    Yeah thats my thought process but I'm hoping I'm just over thinking it.
     
  4. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    If you have 2 similar applications, I’d look for the application with the safer looking jobs.
    Centrelink seems to be the safest “employer”, but that’s not the market I’d target for my own properties.
     
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Conundrum isnt it

    ta
    rolf
     
  6. Shazz@

    [email protected] Well-Known Member

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    I wouldn't discriminate, but as part of the reference check, I would certainly be asking how they went about things during covid-19 (i.e., did they pay rent, did they ask for reduction etc.)
    I already do this, but important your tenants can afford rent (should be ~30% of income)
     
  7. Investig8

    Investig8 Well-Known Member

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    I think smart profiling has always been a part of our process for selecting tenants, now I feel that the current climate will make those finals decision tighten up a few more points for example assessing whether or not people have pets, single, married, 1 vs 5 kids and what ages etc. Assessing more critically the current job, self employed, length of time and now industry might have start getting more attention than it use too when weighing up options moving forward in final tenant selection.
     
    Last edited: 10th Apr, 2020
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  8. TroySeven

    TroySeven Well-Known Member

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    I'm lucky in this aspect, tenants to three of my rentals are either nurses, on gov benefits and coles factory workers.
     
  9. thydzik

    thydzik Well-Known Member

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    I don't think it is being overly cautious, especially given the new residential tenancy laws where tenants can legally stop paying rent if economically effected by covid.

    but at this stage, I think the worst is over, so if anyone has recent payslips from employment, I think you would be fairly safe.
     
  10. MB18

    MB18 Well-Known Member

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    Probably a flawed idea in practice bordering on paranoia.

    Character and ability it pay rent might be more relevant (although difficult to measure).

    I would speculate more tennants have historically found themselves in trouble for reasons other than loosing income during a pandemic.

    I 'work' in a specialized role in one of the more affected industries. My income is zero and will be for the foreseable future.
    I've also just signed a lease on a new property despite not being paid at the moment. The letting agent had some questions but when I explained I will be fine for several years and offered proof of ability to even pay he entire lesse term upfront they were happy.

    Moral of the story... not every tenant needs thier primary job to pay rent.
    Furthermore, you might be surprised just who has been affected. Even private hospitals were on the verge of laying off staff a few weeks ago. Who would have thought.
     
    Last edited: 29th Apr, 2020
  11. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    The last two most recent properties I've leased, the tenants "voluntarily" paid 6 and 2 months' rent respectively up front to secure their applications, in Qld, given the nature of the the new laws implemented by the local Qld Labor state gov, otherwise the owners were fine to let them sit empty......because an empty property is better than one with squatters and no rights...be very careful who you lease to under the current legislation.
     
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  12. Fargo

    Fargo Well-Known Member

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    Houses deteriorate , get vandalized and get squatters if left empty. I have a house in the Philippines with negative rent I pay some-one to stay there in preference to have no-body or an ******** stay there.
     
    Last edited by a moderator: 3rd May, 2020
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  13. MB18

    MB18 Well-Known Member

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    Are there not issues with landlord insurance policies regarding properties remaining vacant for extended periods?
    I'm not a landlord so I do not the details other than having seen it mentioned on here before.
     
  14. The lucky duck

    The lucky duck Well-Known Member

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    Yes no insurance if vacant for more than 110 days due to risk of squatters
     
  15. wylie

    wylie Moderator Staff Member

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    Insurance companies have their own policies about this. We've had houses empty for months whilst renovating them or waiting for them to be lifted and renovated, and still had insurance, but with a higher excess. Best to call and check.