Tenant Financial Strength is Key
For landlords who have vacant residential premises that are available for rent, with the recent moratorium on evictions in most States and Territories, a timely reminder to be mindful of the strength of the tenant applications.
Most landlords are not in a strong financial position to wear the loss of rent if a tenant is not able to pay the rent. With loan repayments, rates and charges still being levied, many landlords rely on the rental income to meet these expenses. Some landlords could have also lost their jobs due to COVID-19.
Landlords should consider making sure that their Property manager and themselves personally know what occupations the tenants are in, or what income they are receiving.
For instance if Centrelink payments are received by the tenants or they are essential workers with strong job security, then that is ideal. Unfortunately if tenants lose their job or income and they have just signed a lease for a property, the landlord could be left in financial distress, with a loss of rental income, ongoing expenses and with a moratorium on eviction, no foreseeable rental income coming in for some time....