I have rejected 2 applicants so far !

[Alex P Keaton]

My 1st viewing for my IP #2 was a few days ago.

5 groups went through and 2 applications.

1st Applicant
A man from London. I rejected him because he is currently unemployed and has no references (only overseas references) He does have a character reference from his mum though. He also has $30 K in the bank. I did think about the option of a 6 month lease and he pay the whole amount upfront but its too risky as I dont have references plus also cant check him on any databases.

A bit more background. His girlfriend plans to come to Perth for a 3 month holiday. This doesn't sound ideal because it sounds to me like he may just want a temporary kind of accommodation. For all I know he might just want my unit for 6 months and then head off back to London to be with his girlfriend.

I rejected him.


2nd Applicants
A couple of young 21 year olds applied. One works part time in a cafe the other is a phd student who casually works as a lecturer and earns $1000 a fortnight. They have good references. However they didnt want my linen cupboard, bed and another large item of furniture. I rejected them too because my rental comes fully furnished and I dont want the expense of having to store those 3 items. They offered to sign a 12 month lease rather than 6 month like they initially wanted in the hope I might change my mind about them. Maybe they will change their minds and not bring their furniture I dunno. If they dont bring their furniture then I'll choose them.


I just found out yesterday that there are a few more interested people and there will be a viewing early next week. Fingers crossed!

 

[luckyone]

I reckon I would have gone for the first guy if he was willing to pay the 6 months up front. I mean if he wrecks your unit at least you've got landlord's insurance for that, and you don't have to worry about the rent for the next 6 months.

 

[devank]

Is it legal to ask the six month rent upfront?

 

[Rolf Latham]

Let's hope ur tolerance profile isn't to narrow .......

Do u have landlxords insurance that will cover YOUR contents ?

Ta
rolf

 

[Alex P Keaton]

I'm in no real hurry to have it tenanted. I can wait a bit longer to get someone decent and I'd rather get it right 1st time. I'm just going to wait and see what happens after the next viewing. Actually I just came from the unit now. I was packing away some more things and when I was there a car pulled up. I was wondering if in fact they might have been looking at my unit. The guy was writing stuff down on a piece of paper and was looking at the building. Then I overheard him say the word unit.

I'm sure there will be some more applicants. Hopefully suitable ones.

 

[Alex P Keaton]

Let's hope ur tolerance profile isn't to narrow .......

Do u have landlxords insurance that will cover YOUR contents ?

Ta
rolf

No I dont believe its too narrow.

and yep i've got landlords insurance

 

[Alex P Keaton]

Let's hope ur tolerance profile isn't to narrow .......

Do u have landlxords insurance that will cover YOUR contents ?

Ta
rolf

Actually I took a punt on my tenant for my 1st IP because I only had the 1 applicant and I couldn't afford to keep it vacant. She was employed but had no referees because she was living with her parents and had no rental history. She was fresh out of home. She has turned out to be a good tenant.

So maybe if I dont get any decent applicants after this 2nd viewing I could go with the option of 6 months up front payment from this London guy and give him a chance? What do you guys think? Is it worth taking a chance on him? And your right my landlords insurance would cover anything if something bad happened.

ps I got the idea of the 6 months up front payment from another topic here at SS.

 

[Alex P Keaton]

Is it legal to ask the six month rent upfront?

My PM didn't say anything against it. She said that we could go for that option if I wanted. But she agrees with me that we will have another home open first to see what other applicants we get and if there is nothing suitable we could then present that option to the London applicant.

 

[Alex P Keaton]

I reckon I would have gone for the first guy if he was willing to pay the 6 months up front. I mean if he wrecks your unit at least you've got landlord's insurance for that, and you don't have to worry about the rent for the next 6 months.

Pm said that they can get email references for him. You cant see the body language or tone of voice though can you so how do you know the email references are legit? I guess you could always take a punt. His mother sounded nice on the phone.

 

[lizzie]

My concern is that anyone decent - with a good history - will have their own stuff from previous premises and not want furnished.

Those who want furnished will most likely be transient renters - or corporate if high quality.

How good is your stuff? Would you be better of, in the long run, having a massive garage sale/giving to charity/putting smaller items in a cupboard at your parents (cutlery etc) and buying new stuff when you want to move back out again?

I'm only asking because in what condition do you think your items will be when you've had a few tenants thru them? They probably won't be worth keeping after a year or so of short term tenants.

 

[Doovalacky]

My PM didn't say anything against it. She said that we could go for that option if I wanted. But she agrees with me that we will have another home open first to see what other applicants we get and if there is nothing suitable we could then present that option to the London applicant.

Far as I know this applies from the tenancy act.

28. Rent in advance
(1) A person shall not require before or during the first 2 weeks of
the tenancy under a residential tenancy agreement as rent under
the agreement an amount exceeding 2 weeks’ rent.

 

[D.T.]

My PM didn't say anything against it.

Here's the part I don't understand. You have a PM and you're concerning yourself with tenants. Let them handle it.

 

[Alex P Keaton]

My concern is that anyone decent - with a good history - will have their own stuff from previous premises and not want furnished.

Those who want furnished will most likely be transient renters - or corporate if high quality.

How good is your stuff? Would you be better of, in the long run, having a massive garage sale/giving to charity/putting smaller items in a cupboard at your parents (cutlery etc) and buying new stuff when you want to move back out again?

I'm only asking because in what condition do you think your items will be when you've had a few tenants thru them? They probably won't be worth keeping after a year or so of short term tenants.

Oh thats a point. But surely you can still get someone decent with a good history who wants furnished?!

I might be moving elsewhere after staying here at mum and dads. I might not even go back to living in my ppor. So in that case I'd probably just buy new furniture (new or used) I'm thinking. If I do move back into my ppor I dont think i'd mind if the furniture was a little worn out because in around 3 - 5 years time i'll be buying a new ppor in a suburb closer to my parents so the furniture will just stay there.

hmmm so I guess i'll most probably get a more transient type of tenant then. Someone who moves a lot. Temporaries?

 

[Alex P Keaton]

Here's the part I don't understand. You have a PM and you're concerning yourself with tenants. Let them handle it.

Well its a thing called communication!

 

[Shaneelastic]

with all due respect, your ideal target mkt is pommys coming across for a working holiday.

 

[buzzlightyear]

Furnished only works in high end dwellings (typically apartments) that are designed for the corporate markets. Anything else is a zero sum game. I've done the numbers before when taking into account cost/depreciation of furniture.

Plus, you'll increase the pool of prospective tenants by going unfurnished. Given the slowness of the rental market in parts of Melbourne, this is not a good time to restrict your pool.

Sell or put your furniture into storage, or family's member garage (if that's an option)

Plus, do you think people (even high end corporates) are going to look after their furniture like its their own? Used furniture has the same feel to me of a used mattress. I can put up with it for a time at a serviced apartment/hotel, but not for a 6-12 month lease.

 

[Alex P Keaton]

with all due respect, your ideal target mkt is pommys coming across for a working holiday.

yeah im starting to think this might be the case! Anyway, there is a good chance i'll move back there in 1 - 2 years time so I guess its not such a bad thing if I were to only land short term leases.

I found this link

DIU Tenancy Agreements - Tenancy Laws in Australia

Here is the law for Western Australia in regards to rent in advance.

Rent in Advance:
2 weeks during the first fortnight. After that the agreement can provide for rent payments on a weekly, fortnightly, four-weekly or calendar-month basis or any other period as agreed by the landlord and the tenant.


The more I think about it the more I reckon this London bloke might be a reasonable option after all... (as long as he pays 6 months in full that is) and I guess if something goes wrong then i've got landlords insurance

Anyway, I'll wait till after the 2nd home open and then see.

 

[Alex P Keaton]

I'm really torn now between renting it furnished or unfurnished and then just buying myself new furniture when i move back in later. I'll most likely be moving back there in a couple of years time. I dont want to move back in with worn out furniture. But also its going to be a hassle having to seel my furniture and then re buy stuff later on.

Maybe i'll just do the short term tenancies and see how it goes. I dunno.

 

[D.T.]

Well its a thing called communication!

I prefer to call it delegation.

 

[Lil Skater]

Alex,

Furnished properties and long term tenants don't generally go hand-in-hand.

I had one, who was at the property for 3 years but after moving on I had a lot of corporate leases between 3-6 months on the same property.

The rent was higher due to being furnished, but once you take into account leasing costs, it's just not worth it.

I'd remove the couple of things and give it to the young ones who want 12 months - then after that think of selling the furniture left if you don't want it. Who knows, they may want to stay put for 3 years!

The only good thing about the corporate leases were the fact that I never had to worry about the rent - it was usually paid in full or 1-2 weeks early.

With regards to the rent in advance - I can't beleive that WA allows that! Very different in most other states to my understanding. In Vic it's no more than 1 calendar month in advance that we can ask for, obviously if the tenants chose to pay further they may. Although, at least with properties over $350 pw we can charge higher bonds - very handy with student type accommodation and furnished.