NSW Department of Housing

HI, wondering if anyone can help me out with regards to this issue. Have tried a quick search but it returned a long list of threads and I don’t have time to look through it tonight…

We have had an application put in for our IP. Now the issue is that she has a letter from the department of housing who will pay bond and $1000 on top and guarantee the first 6 weeks. After that it is up to her to make payments.

Now, as her last 2 places of residence she listed 1 month at the place she currently is at. Said it is a temporary home found by the department it self. For the year previous, it was with friends. Should we ask for previous history? How can I know she will pay? She is a single mum with 4 kids under 10.

Any comments/opinions? This is the first time we are renting out the IP so it is all very very new!

thanks!!
 
I don't think I would risk it, but I guess it comes down to whether you have any other people interested and how long it has been vacant. At least you have six weeks guaranteed. Maybe if you don't have anyone else showing any interest and you want to risk it just sign her up for three months. We have something sort of similar happening at the moment. A tenant paid the full amount up front for three months but now her lease is about to run out and she wants to renew for another six. When she reverts back to weekly payments it's a whole new ballgame.

As for the question "how can I know she will pay". Short answer - you don't, but then none of us do. What does your PM think, or are you self managing?
 
I'm with Savanna on this one. Rent to a quality tenant and leave the riff raff to someone who doesn't treat their investing as a business.
 
Also! If this is your first, and you go ahead with this tenant AND they turn out to be the tenant from hell, what is the likelihood that you'll get more investment properties? Slightly more diminished than if you had a good tenant? :)
 
thanks guys for your replies!

at first I reasoned the same as you are Nathan, but the more I looked into the more I became weary.

in the application, her license, medicare card, centerlink statement and RTA certificate of registration of vehicle all have different addresses so it really made me wonder why?? Plus, the only previous landlord referee she has is her friend, who is also her next of kin….

I don’t know but it doesn’t look to good to me at this point……. I’m hoping we’ll have more applications soon! it hasn’t even been 5 working days and last weekend everyone was away so I’m not panicking…….i think ill wait!

plus its a 3 bedroom towhnouse so can you imagine the wear and tear to the house with 5 people in there.....

thanks for all your replies!
 
If her only previous history is as you say, I would hesitate that she has been evicted which is why she has so many temporary addresses. Afterall, you don't become a single mother to four overnight, so she obviously DID live somewhere else at some time. Add to this the handout from Housing Department, which means that even though she has been staying with family & friends, she has still spent all her income.

Sure, she might have learnt her lesson and be a good tenant, buy why risk it? Rental vacancies are low, so why put up with someone less than what you want.
 
As for Liars I would be agree with the 2007 liberal ad where it plays the union bosses barging in... *tell em to #^@* off*. Cannot stand liars, if the agent feels they scrub up then thats ok, as soon as tenant lies to me their rent goes up. Principals and ethics, wouldnt go for her. But on same token, sometimes DOH tenants are good (if they dont lie of course).
 
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