Young tenants - yay or nay?

Hi Everyone...
Would you be willing to rent out your IP to a tenant made up of a Husband & wife , 3 friends + a cat. Ages 23-26 all FT employed.
Not sure if concerns on millennials treating the house as a party spot is me being too pedantic?
The house is due for a once over with paint & carpet anyway,, but they have mentioned they are fine with the place as is.. so potentially saving some costs there.
Would love to read about peoples experiences with renting out to younger tenants.
Thanks in advance

 

I’ve got younger tenants in families and house shares in some of my places and not had a problem so far.

Someone has to give them a chance and if you are the one they can be loyal and stay for years.

It’s also down to the PM to do their job well. Convey your expectations and keep on top of things.

Good luck.

 

You were 23 once, how did you look after your home?

 

Refer back to what the Act says about criteria for vetting an application - ability to pay the rent and maintain the property. If you think they will not able to adequately maintain the property then decline their application. Landlords should mitigate risks using suitable insurance products, such as Landlords Insurance, as well as ensuring they or their Agents undertake competent and thorough entry, routine and exit inspection reports (with date & time stamped photos) as evidence should a claim need to be made and/or a matter for compensation taken to the Tribunal.

 

Sounds like a decent size property. I would let them have it. There are plenty or young mixed houses in Sydney where the tenants behave. They are also less likely to get into arrears than a big family with only a single or double income. If they are happy to take it as is, that's a bonus. And they would know that having a cat limits their options, so they might do the right thing. What has the PM advised about names on the lease? All five of them? Maybe tell the PM that you want an inspection done 4 months into the lease to make sure that all is well.

 

I was this young person once upon a time (many years ago)!

We choose to pool the money we'd individually pay on rent and rent a high end house together. Worked really well for us and was both way better & cheaper. We were all young working professionals and not in the business of destroying people's homes so fair to say the house was left in the same condition we found it and our bond was returned in full.

This was leased through a professional PM. What does yours advise?

 

I have 3 properties leased to young ppl ( 2 are couples, 1 was for a shared among 3 guys), which were recommended by my PMs, so far so good. 1 couple was first renters.

it depends on the individual tenants .

 

+1
There age has less to do with it for me than their ability to pay their rent. If they have stable jobs and earn enough to pay then I'd be inclined to take them on
Probably 4 of my places have such tenant arrangements. Sometimes one leaves and they take off a tenant and add another name on but generally they've all been good.
Keep a good eye on them, stamp out rowdy behaviour early (I've breached in the first week after a housewarming party till 3am) and ensure good practices by PM and of course landlord insurance.

 

A neighbour to an IP, the tenant has been there 9 or 10 years. Single and sublets the other 2 bedrooms. It is in a convenient location and doesn't want to move but the other sub-tenants have changed over the years.

Provided the number of people is not over the top or if one moved out there'd be rent issues, then renting to younger people shouldn't be a problem.

 

I trust my managing agent's judgement as well my own. I've had a couple of first time tenants with no rental history and they've all be good so far with paying rent on time and looking after the property with each inspection.

 

I have had several younger tenants over the years.

Both good and bad, but most of that came back to the property (very low demographic on one, and had minor issues with only that one).

Take the younger tenants, all occupants to be listed on the lease and insurance to be maintained

I too was young once, after the first property inspection and the PM commenting abojt the flowers in the front garden and how tidy things were, all my future efforts were on that front garden, the PM didn't venture past the front door for future inspections, never had to race around hiding the "evidence and paraphernalia" like @datto tenants ever again

 

Well, my young tenant couple never had the problem of hiding things.

I informed my PM that I wished to accompany him on the first inspection. Anyway I turned up 5 minutes late at the IP, walk through the front door and there's my PM sitting on the lounge having a session with the tenants.

I told the PM this is unprofessional and where does he draw the line between work and leisure? He said the house is fine and asked me if I had a mull-o-matic in my car to which I replied that It's at home and I'd be back in 10 minutes.

Anyway, you'd couldn't ask for better Mt Druitt tenants.

 

I’d say OK - the more earners in the home the greater chances of rent being paid.

But I’d also make sure every one of them named on the lease.

 

6 ppl is a lot of people in one house

 

Cats aren't people or I can't count

I know of a few 4 bed family homes with 6-8 kids plus adults. Just gotta be the right house.

 

Depends how many cats you have!!!

 

5 people, 4 individual lives and separate dramas potentially. If I could find 1 family to take the place then that would be my pick rather than having 4 groups of people .

 

I wonder if this house had young or otherwise tenants? It was noted in another PC thread, but I didn't realise it had sold.

14 Manila Road, Lethbridge Park, NSW 2770

 

Very good point. Where the property is and the quality of the property often has a lot more to do with the potential for issues than the age of the tenants.

- Luke