Introduction: As a landlord in Brisbane, you have the opportunity to stay ahead of the…
There has been a lot of media coverage recently on how crazy the rental market has been in Brisbane. With huge turnouts at open homes creating a lot of competition we are starting to see some behaviours that are not typical. We have prospective tenants offering higher rents in the hope to secure a tenancy and Real Estate agents accepting applications without actually showing the property.
Not wanting to sound like a negative Nancy, but being a business owner of a boutique Real Estate office where I am still very much involved in the day to day management of the investment properties, hearing this raises a couple of concerns for me.
Firstly, it’s great if prospective tenants are offering higher rents to secure a property. If they go to open homes and see a large turnout, then offering higher rent makes sense.
What concerns me is, if applications are approved sight unseen, could this raise issues during that tenancy?
One of the reasons we show properties to prospective tenants is so they know the condition of that home, any inclusions, any issues etc. and that everything is transparent. In this instance, I can imagine it turning into a dispute at some point. I can’t speak for everyone but I would at least like to see a video walkthrough of my future home before signing any documents.
The other question to ask is if agents are inundated with applications with or without showing the property, how well are they vetting applications?
– Are they simply putting forward whoever has offered the most rent?
– Are they checking affordability (rule of thumb 30% of weekly net income)
– Are they doing tenancy database checks?
– Are they ensuring the employer references are coming from a company email?
– Are they calling private landlords or agents following a written reference? You can get a lot by talking with someone on the phone rather than in an email.
Having a tenant who cannot afford the rent or has received bad references is worse than having a property vacant for a few weeks. It may jeopardise the landlord insurance, cause damage to the property and potentially end up in tribunal.
One thing is for sure, the Brisbane rental market is definitely doing well and I feel it will continue to do so however, it is absolutely crucial that applicants are vetted by your property manager with diligence. Just because the market is “hot” shouldn’t mean that they aren’t crossing their T’s and dotting their I’s.
When I see social media posts like “Rented in one day” “Leased in 24 hours” etc… I get nervous. At Flourish Homes we are motivated and equipped to make sure we can take advantage of a hot rental market and secure a quality tenant at the optimum rent in the shortest possible time frame BUT we let our years of experience, solid systems and processes guide us and make the right decision for those Landlords that trust us to manage, possibly the most expensive asset they own!
This is not a race. We are in this for the long game!