Advice on tenant selection - privately managed IP

[UrbanPlanner]

Hi all, hoping to get some advice.

Advertised our duplex in Dianella for rent 2 weeks ago for $420pw, had about 4 applicants of which 2 were couples. We offered it to couple 1 as they earned decent money and he was a government employee however they turned it down as they couldn’t move in til end of April. We then offered it to Couple 2, who stuffed around for a week trying to get their bond etc together, after a week we retracted the offer cos if they cant even get the bond together then what's going to happen come time to pay rent.

I then went back to Couple 1 and they agreed to sign the lease tonight to start from Firday of this week at $420pw, so happy days. While Couple 2 stuffed us around we arranged a home open over the weekend and had 2 couples through. Couple 3 applied yesterday and then today said that they are willing to pay $440pw rent and sign the lease from this week as well.

I'm torn as to what we should do, 1) go with Couple 1 who we originally wanted and have told that we will be signing them up or 2) go with Couple 3 who are willing to pay more rent..

Any advice is appreciated.

 

[wylie]

Assuming Couple 1 will be paying overlapping rent for a month, and you have someone else happy to sign at $20 extra per week, and also that Couple 1 initially turned YOU down, but for some reason are happy to sign today, I'd be tempted to take Couple 3 if they check out as being good tenants.

Just to play Devil's advocate though... if Couple 1 have somehow brought forward their move in date to suit you, then I would think you need to sign them up. If they really want your house and have decided to pay double rent for a month just to get your house, but still have a month to find somewhere else, you have to make the call.

Did they care when they wanted you to sit with an empty house while they took their sweet time about moving in?

A lot depends on the circumstances and why they have decided to sign up earlier than initially they wished to.

 

[UrbanPlanner]

Thanks wylie.

Couple 1 is still in a lease until 18 April so their circumstances haven't really changed. We are allowing pets in this IP and they do have a dog and we simply outlined how rare rentals that allow pets are, and I think that may have been what caused the penny to drop. It's also been about 2 weeks since they first turned it down so then they would have been paying double rent for 5-6 weeks, whereas now it's more like 3-4.

 

[wylie]

I'd be tempted to go back to them and say "I'm sorry but I've been offered an extra $20 a week and I have lost so much rent already that I need the extra $20. If you are prepared to pay that, we will sign today, but please put yourself in my shoes and understand that we have not signed anything yet, and you still have time to find another rental so I'm leaning towards this other couple".

I don't know if I could do it, after saying it was theirs, and I'd feel a real heel, but I couldn't help but think about the extra $20 every week... especially seeing they decided against your rental earlier.

PS. I wonder if they found another house for $20 less that they liked better, if they would sign with you because they said they would? Or would they take the $20 per week cheaper place???

 

[Hamish]

PS. I wonder if they found another house for $20 less that they liked better, if they would sign with you because they said they would? Or would they take the $20 per week cheaper place???

Exactly.

UP, what are Couple 3 like? Apart from their offer would you consider them as suitable as Couple 1?

$440 p/w is great, but not if they're unemployed and intend on paying the rent with proceeds from their clan lab in your shed.

 

[DaveM]

Couple 1 only turned it down due to timing. Since they can now move in faster and you have offered it back to them and both you and they have accepted the rental offer, do the right thing and rent it to them.

 

[INVSTOR]

Who had the better references? I hope you thoroughly checked out each applicant!

 

[Peterw]

While I do appreciate that couple 1, if they found some thing cheaper, may take it, however they not, believing that they gave you an undertaking. However, if you went back to couple 1, who I understand you now have a verbal agreement with, and asked them to up the anti because you have a higher offer, do you think that may alter their attitude as tenants when they are in your property? On thge other hand, you told them that you had a better offer, however will stay with them because that the sort of person you are, what sort of attitude may they have to your property?

Yes, its all assumptions, but perhaps food for thought. Have a happy easter.

 

[kathryn d]

So...what happened?

We tell everyone, until the bond is paid, it is still available

 

[UrbanPlanner]

Thanks guys.. We stayed with couple 1.. They had excellent references, although couple 3 had good references as well. Gut feel said couple 1, one works for government and the other a nurse. Money aside they seemed the better tenant with better prospects to stay long term.

Thanks for the advice everyone