Renting to refugees?

O

ozi

Hi all,

I'm in the process of completing renovations on my West Footscray property. It will be ready to rent out in about 3-4 weeks so I've just had 3 different property managers inspect the property to give me a rental appraisal. I am stoked as to how crazy the rental market is right now. Previous tenants were paying $180 p.w. Back when I bought it earlier this year, I was expecting to raise the rent to about $230 p.w after renovations. Now the PMs are telling me I should achieve between $280 - $300 p.w :D

Anyway, back to my question. One of the property managers who I spoke with deals with the immigration department and helps house Burmese refugees in the area. The immigration department practically picks up these Burmese people from the airport, gets them set up with Centrlink then takes them to a fully furnished house (Govenment furnishes the property, not landlord). The government also forks out for the bond and 1st months rent. From then on, the refugees are on their own.

The property manager tells me he has been dealing with these refugees for 2 years and they are wonderful tenants. Even though they don't have jobs when they arrive, they generally have enough to cover the rent from Government handouts. Most are families with kids. The thing that worries me is them not having a job. Most would spend their time at school learning English, then find work when they are established. The PM assures me these people want to work and look after the properties, more so than other tenants.

Has anyone had experience with refugee tenants? I'm leaning towards just renting the house out to a professional couple or family as I could push for higher rent, but just exploring all options before making a choice.

Regards,
Ozi
 
I've been renting one IP out to a government organisation (MATCH) that secures accomodation for people from overseas (I don't know if they're refugees or political asylum or whatever). In that case the government pays the rent, one month in advance, every month.
Alex
 
We have one of our own proeprties rented to a Sudanese refugee family, and I work as a property manager and about five of the houses I manage are rented to refugee families. Mostly from places in Africa (Sudan, Rwanda, Botswana, Liberia), they have been through wars, torture and horrific government stuff before they get here and they all just seem to be so GLAD to be here.

They are families and generally studying although the Liberians speak excellent english. We rent with a company called CentreCare, they support the refugees - they arrange a furniture package, they show them which forms to complete and how, they show them how to read the water metre, how to mow the lawn, how to change the light globes, they ensure the local doctors know about counselling people with torture trauma and I think they arrnage bikes for the kids. They show them local public trnasport, find them a church network, show then what is expected when they prepare for a Property Inspection, how to pay rent and all sorts of things. Moving to a new culture ina new language is a big adventure. They guarantee the rent fo r the first six months.

And I am pleased to say that we have had absolutely no problems with these tenants. Rent is paid without a hitch and the houses are immaculate. The refugee families are happy to be here, friendly to talk to (well the ones that speak english -0 fo r the non english speakers we do some signing and a lot of gesturing and smiling and it is ok!), quiet. The Centrecare staff only choose houses that are well maintained and safe (eg secure fencing in yard for children), and the support network is very strong. They all seem to live in the same area so I gues s they help each other a lot as well; I know I have talked to (aussie) neighbours who have told me how they have helped this one fuel the lawnmower or given that one a lift to his job etc - just being good neighbours. So thats all good. The ones I met have all been very involved in their local church which provides a lot of support as well.

I would be hesitant if Centrecare (or another agency) weren't involved, they provide a lot of support. However my experience has been all good. There may be dodgy refugees out there but I haven't met them yet. And it is a great feeling that you have helped to make a difference in someone's life.

AND I have just recently rented out a house to a Burmese family (not refugees but just moved here) two students and one working. Excellent references, house is IMMACULATE at first inspection, polite and friendly. If your Burmese folk are related to these ones, snap them up!
 
I think I would be a little concerned with the income. If rent is close to $300pw & they are trying to pay for that with only centrelink income it could be a little tight. Although in saying that, being refugees, they probably don't have the same spending habits as westerners, so maybe they could manage it.
If the PM has some data showing how they can afford it on that kind of income, then I would probably give them a go.
 
There is no need to be concerned at a $300 rent. Centrelink payments for a family include a component of family payment and rental assistance. Manageable (just) when you don't have any illicit drugs or excessive alcohol draining your resources.

Your tenants are no more likely to lapse on rent than any other group in society.
Great if you have this option. Good luck :)
 
I will treat an application from any tenant based on what they have to offer, and how they will be able to pay.

I don't like to say that "People from xxx are good". Or "People from xxx are bad".

You will get good people and bad people from any demographic. From most demograpghics, you will probably get 90% extrememly good renters, 7% OK, 3% bad (guessing here).

The problem with a new resident is that they will not be able to prove rental history or income.

The same problem with a student leaving home for university for the first time. Or any other first time renter.

We've discussed single mothers before in the same way.

When the rental market is very tight, it can be extremely hard for new renters without a rental history to get into the market.

If a government authority can take away some of the doubt, at least for some short period, that may swing the balance a little more in favour of people without a history- which is obviously the intention.

I've rented to people with a bad (or no) history with backing by another person or body. I've always received the rent, but I've not always been happy with what has happened.
 
We rented to a couple with no references but they offered 6 months rent up front . We took a chance because the prospective renters weren't exactly busting the door down to rent our little house in a fishing village. Basically, the rent was always late after the advance was caught up with and they left owing a heap. Place was a tip afterwards too. They weren't refugees or new immigrants just a couple of deckhands who prefered to spend their money on weed not weeding.

If I had houses in the right price range in areas that appeal to new migrants or refugees I'd be happy to consider an application to rent. I like the idea of playing a part in assisting a new Australian to settle in to our fabulous country.
 
Hi all,

Thanks for the feedback. I agree that the main concern would be whether they are able to comfortably pay the rent. I will speak to the PM again to see exactly how much Government assistance they receive. I don't really care where these people come from or what their backgrounds are. As long as they pay the rent and look after the property, I am happy :) I agree with Geoff that there will always be a few bad apples from every demographic.

Cheers,
Ozi
 
All up I would say they have to potential to make very good tenants from the point of view of meeting their financial obligations.

Unfortunately they lack so basic understanding about live in a unit or house.

We have had tenants who have tied string and cloth to taps to try and stop insistent drip that they didn't report. Nails into wall (4inch) right above a power point to tie a string to it to hold the door open!!! and nails anywhere and everywhere. One time we were having a building inspection done (cracking in brickwork) and builder reported that tenants were defrosting chicken all over the carpet in the lounge room.

Have had a number of tenants do excessive cooking, seems that they cook for the local restaurants:eek: in my stoves!!!!:(

Now we have had one unit completely repainted aqua green from a beige using gloss paint. You know the sort of colour you used to see on the outside of fibro places. Every damn wall Ahhhhh. They have now been there 4 years unit was completely renovated before they moved in.

In the end I don't really care as long as they don't complain excessively (which they don't) stay a long time (which they generally do) as we can fix up anything thatis wrong broken etc at the end of the lease. These properties are in the main concrete and tiled units so fairly robust.

Mind you the one I do get cranky about is the water/heat marks on the brand new bench tops where they pull a pan straight of the stove then rest it directly on the bench and pore the liqid out with plenty of spillage.

Cheers

PS I do get exposed to a relatively high proportion of these type of tenants
 
Thats so interesting to hear about this from a landlords perspective handyandy.

There is a huge groundswell of opinion that insufficient money/time and services are put into ensuring our new immigrants and refugees (particularly those from Africa) are settled adequately. Stories like yours illustrate that it is obviously the case with some people that they just don't have the all the skills necessary that the rest of us take for granted. We do need to provide a great deal more education to ensure people can make successful new lives and that has to include how to look after private property.
 
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