hey Nath / Skater
Is it generally quite easy to rent out properties of average to above average calibre in those areas?
What do you mean by "those" areas? Who/what do you consider average to above average calibre?
I presume you are referring to the Mt Druitt area rather than the Campbelltown area.
Mt Druitt has several suburbs that were once the exclusive domain for Housing Department. Over the years they have sold off a lot of stock and at the moment they sell a couple each month that are exclusively for owner occupiers. They must sign a clause on their contract confirming they will be residing at the address for seven years.
Many people put down the entire area and assume that anyone who lives within the postcode 2770 is a layabout, good for nothing, trouble making dole bludger. This is not the case.
Yes, there is still a lot of Housing Department stock. Yes, there are some trouble makers, but you get them anywhere you care to look, don't you? There are some of the original single parents from around when the estate was first opened up, still living in their homes.
As for the calibre of the tenants, are you of the opinion that welfare recipents are low calibre, while those working are high calibre, because if you are, you might well have a shock comming.
Welfare recipients do not mean bad tenants. Some are, some aren't. Welfare recipients might have a little more financial stress at times. I have a long term tenant on some kind of benefit who I have never had a serious problem with. He does get a little behind from time to time, but he always catches up again. He has been in one of my IPs for around six years now, and I don't see him going anywhere anytime soon. Some of my best tenants have been welfare recipients. Paying their rent on time and looking after their homes. Some of my worst tenants have been in full time employment earning above average incomes.
So....the calibre of the tenant should be gleened by careful screening of references, not just income alone. Of course you do need to see if they can afford to pay the rent on a property, that does go without saying. I mean, you would not accept an applicant on welfare to rent something that is going to cost $1000pw, but you might if it was $300.
If you are going to play in this market, it is important to have a really good PM. Someone who is aware of what to look for and will be tough on tenants if they do the wrong thing. Landlords Insurance is a must as well. Even good tenants can sometimes go off the rails at times too, and not just in this area, it happens everywhere. You know, a couple living together with a couple of kids and the male ups & leaves. The female is left holding the baby (literally in this case) and can't make ends meet. It happens!
