Renting – a landlord’s perspective

[buzzy--bee]

There have been a lot of posts on this forum recently from people asking the best way to get a rental, or from people having trouble getting a rental for various reasons, so I thought it might be useful if I explained how things work from the landlord’s perspective.

 

I have a number of properties that I make available to tenants, mostly unfurnished on long term leases.

 

All that I care about is

 

 

1. Getting the maximum rent I can for the property
   
2. Getting the rent paid in full on time
   
3. Minimising expenditure on the property.
   

 

In other words, it’s a business, just like any other business. At the basest level, in order to obtain a rental, you are going to have to persuade me, normally through my agent, that you are going to help me meet the three goals listed above. Most landlords are losing money on a monthly basis in the hope of making some capital growth in the future. So anything that mitigates that loss is a bonus.

 

Tenants are my customers, however unlike a traditional customer / supplier relationship, the tenant / landlord relationship involves an amount of risk, as neither party normally knows each other, and the landlord does not take full payment from the tenant and then divest themselves of the asset like a shop does. So in order to minimise this risk, there are controls on both sides dictated by the various state landlord and tenant acts.

 

So what is going to encourage me to pick you as a tenant?

 

Firstly, don’t be put off by the number of people at inspections. In most cases, 80% of these are not in competition with you because they are either nosy neighbours or people who have bad tenancy records and will not get accepted in any event. Probably 2 people in 10 will actually submit an application and pass approval.

 

To rise above the crowd, help the landlord with the three things above. Offer a higher rent if you really like the place. Offer a higher bond if you have a pet or there is an any other reason why the landlord might think you would be more likely than another applicant to cause damage. Offer a few months upfront – landlords always have cashflow challenges. I was extremely grateful this month when a new tenant offered 2 months upfront as another tenant was late with the rent and a third property needed a new dishwasher, all at once.

 

If I know you will pay on time and that the place will be in as good or better condition when you leave as when you arrive, I will have no problem letting to you. So all you have to do is show me that’s going to be the case!

 

Hope this helps.

 

BB

[Alison Hutchinson]

Thanks for this buzzy bee! And for your reply ti my earlier post! I think I'll offer more rent up front and also let them know that my husband is very hand around the house! I could show them the pics of our house so they can see how beautiful it is :-)

 

thanks again x

[Peach]

Lol... Typical of a landlord to suggest offering above the advertised rent..

[buzzy--bee]

Welll...try offering below the advertised rate, and then come back on the forum a few weeks later complaining you can't get a rental......!

 

BB

[Peach]

Welll...try offering below the advertised rate, and then come back on the forum a few weeks later complaining you can't get a rental......!

 

BB

 

That really depends on where you're renting. Rents are hardly spiraling upwards: http://www.sqmresearch.com.au/graph_median_rent_weeks.php?avg=1&t=1

[Johnny Kash]

to be fair I think a large proportion of Poms renting over here are like us and are landlords ourselves (back in UK) so have experience from both perspectives.

 

What folk need when they come over is advice on the vagaries and downright oddness of the world that is Aussie rentals. I have to laugh when I left my tenants in UK with a fully furnished flat - meaning flat screen TV, Italian leather couch etc. We rented 'furnished' on arrival over here. Furnished in Oz in our case meant a mangy old sofa, old appliances and the 'coffee table' was laughable - I wouldnt give it away.

 

When our fan broke mid summer (with no air con) the landlord whinged and moaned about having to fix it. I made sure I was in when he inspected it and told him (diplomatically) what a plum he was being and that I myself dont want to shell out cash as a landlord but if stuff goes wrong you fix it. He was good as gold with us after that.

 

Anyways, my point is its different over here and we have to accept it. My view - its weighted too far in favour of landlords over here with the constant inspections, struggle to get your deposit back and demands such as carpet cleaning irrespective of whether the property needs it or not

[Guest Helchops]

to be fair I think a large proportion of Poms renting over here are like us and are landlords ourselves (back in UK) so have experience from both perspectives.

 

What folk need when they come over is advice on the vagaries and downright oddness of the world that is Aussie rentals. I have to laugh when I left my tenants in UK with a fully furnished flat - meaning flat screen TV, Italian leather couch etc. We rented 'furnished' on arrival over here. Furnished in Oz in our case meant a mangy old sofa, old appliances and the 'coffee table' was laughable - I wouldnt give it away.

 

When our fan broke mid summer (with no air con) the landlord whinged and moaned about having to fix it. I made sure I was in when he inspected it and told him (diplomatically) what a plum he was being and that I myself dont want to shell out cash as a landlord but if stuff goes wrong you fix it. He was good as gold with us after that.

 

Anyways, my point is its different over here and we have to accept it. My view - its weighted too far in favour of landlords over here with the constant inspections, struggle to get your deposit back and demands such as carpet cleaning irrespective of whether the property needs it or not

 

Very true post. I think the UK have it too much the other way (where the tenants have too much power) but it sucks to rent here.

 

There are also a lot of 'accidental landlords' here too - a few real estate agents have told us that they have a lot of temporary lets advertised as permanent long-terms (with an initial 6 month lease to, y'know, test the waters) only to call up in three months after the first inspection to say, 'Oh by the way we won't be renewing as the owner is moving back in'. Very annoying.

[colinmaclec]

Love the comment about offering more rent lol. In Perth i noticed a lot of properties being re advertised at lower rents when i was looking for a rental 6 months ago. The rental market in perth has increasing occupancy rates and i presume other cities are the same.

[Guest Helchops]

I love the comment about offering some month(s!) up front...

If we could all do that, we'd be buying not renting.

[flag of convenience]

Rental laws are a joke in Australia to which the OP outlined to a degree. The problem being it should be a two way process but to much power is on the boot of the landlord in Australia.

 

Every second person out here thinks it easy money having to do nothing except watch the bank balance grow or invest in other properties. They all too often do want to spend on repairs and intrusive home inspections, often by a young up themselves woman adds to the misery.

 

I do not rent but have done so and had a good personal relationship with the owner in those days. Am also a landlord renting out a few properties abroad and am just happy when they are maintained and the rent is paid. Do not rely on greed or indeed market price giving preference to long standing, stable and good renters.

 

Can't wait for the downturn to wipe the smugness of a few greedy faces. It is happening. Up in The Kimberley there have been considerable reductions on new builds in Derby. I know a couple vacated five weeks or more which were going for $1500+ a week can't get any punters.

[flag of convenience]

Very true post. I think the UK have it too much the other way (where the tenants have too much power) but it sucks to rent here.

 

There are also a lot of 'accidental landlords' here too - a few real estate agents have told us that they have a lot of temporary lets advertised as permanent long-terms (with an initial 6 month lease to, y'know, test the waters) only to call up in three months after the first inspection to say, 'Oh by the way we won't be renewing as the owner is moving back in'. Very annoying.

 

You should look at some other countries if you think that in UK they have to much power. The thinking being different that it is their home, not a short term hotel room and as such certain entitlements go with that. Not the environment to earn swags of money hand over fist but comfortable enough for all concerned.

There is not the same pressure to purchase there as UK and Australia which in turn allow for more long term options.

[buzzy--bee]

Up in The Kimberley there have been considerable reductions on new builds in Derby. I know a couple vacated five weeks or more which were going for $1500+ a week can't get any punters.

 

Remote places are going to be subject to the vagaries and fluctuations of local conditions eg employment. A lot of investors will only buy close to a CBD to avoid this.

 

BB

[SaffanZimbo]

There have been a lot of posts on this forum recently from people asking the best way to get a rental, or from people having trouble getting a rental for various reasons, so I thought it might be useful if I explained how things work from the landlord’s perspective.

 

I have a number of properties that I make available to tenants, mostly unfurnished on long term leases.

 

All that I care about is

 

 

1. Getting the maximum rent I can for the property

2. Getting the rent paid in full on time

3. Minimising expenditure on the property.

 

In other words, it’s a business, just like any other business. At the basest level, in order to obtain a rental, you are going to have to persuade me, normally through my agent, that you are going to help me meet the three goals listed above. Most landlords are losing money on a monthly basis in the hope of making some capital growth in the future. So anything that mitigates that loss is a bonus.

 

Tenants are my customers, however unlike a traditional customer / supplier relationship, the tenant / landlord relationship involves an amount of risk, as neither party normally knows each other, and the landlord does not take full payment from the tenant and then divest themselves of the asset like a shop does. So in order to minimise this risk, there are controls on both sides dictated by the various state landlord and tenant acts.

 

So what is going to encourage me to pick you as a tenant?

 

Firstly, don’t be put off by the number of people at inspections. In most cases, 80% of these are not in competition with you because they are either nosy neighbours or people who have bad tenancy records and will not get accepted in any event. Probably 2 people in 10 will actually submit an application and pass approval.

 

To rise above the crowd, help the landlord with the three things above. Offer a higher rent if you really like the place. Offer a higher bond if you have a pet or there is an any other reason why the landlord might think you would be more likely than another applicant to cause damage. Offer a few months upfront – landlords always have cashflow challenges. I was extremely grateful this month when a new tenant offered 2 months upfront as another tenant was late with the rent and a third property needed a new dishwasher, all at once.

 

If I know you will pay on time and that the place will be in as good or better condition when you leave as when you arrive, I will have no problem letting to you. So all you have to do is show me that’s going to be the case!

 

Hope this helps.

 

BB

 

Very good post! At the end of the day landlords are (whether we like it or not) in it for the money.

We will be renting out UK house out next year and becoming tenants in Perth. I am stressing about getting the right tentants in as we've spent the last 7 yeards improving the house and our priority is to get a tenant who looks after the property and that includes the garden (we are leaving the mower / strimmer and other garden tools).

Equally, when we move to Perth we are hoping to find a rental where we are allowed to maintain/improve the house and gardens to make it comfortable. I've read somewhere that some landlords don't allow you to make any changes at all during the lease and most houses do require a lick of paint every 2-3 years......

 

Hopefully we can find a landlord who thinks like we do..... but not sure when we start out if we can afford to offer more cash up front.... so will settle for compiling a little resume showing how we have cared for our own home and letters from our neighbours stating that we are "good" neighbours and hope this does the trick!

[pablo]

Appreciate the insight from a landlords perspective BB,not sure i would ever offer more than was being asked for a rental tho,no telling where that approach might lead if it became common place,re gaining a rental,i might take my mortgage stuff over,thats about it i think,i'll probs just muddle thru,seems to work for me,in the end that is!

[LizzyTinKnicks]

Very true post. I think the UK have it too much the other way (where the tenants have too much power) .

 

Apologies for selective quotation but that is simply NOT TRUE. We have rented for several years, as have many of our friends so have first hand experience of this for good and bad. Granted, there are a few bad apple tenants where it's difficult for the landlord to legally evict them after months and months without paying rent or whatever. However the overwhelming majority of tenants are decent and trustworthy people who look after the property (after all, it is their HOME so it's in their interests to look after it) but get shafted by landlords with no legal recourse.

 

You wouldn't believe the stories and experiences that are actually very commonplace amongst renters. It's just that landlords (and regular homeowners) have absolutely no concept of what it's like to live in someone else's "investment" with no security of tenure, sky high agents fees and at the mercy of the landlords whims. Many landlords are equally decent people who treat their tenants properly, but many, MANY of them are not. Tenants do NOT have"too much power" IMO.

[Chortlepuss]

I think the rental market in Brisbane is getting a little easier. Seen a number of properties advertised recently refurbished to UK standards. Moved out of rental which has been largely untouched for 2 decades - $480 per week, albeit close to city. At open house no viewers - hopefully landlords will start raising standards. I'm a UK landlord. My house is lovely, well maintained, and my tenants respect that and look after it accordingly. Just cos you're renting doesn't mean you should live in a pigsty. Oz landlords have had it too good for too long.

[vickyplum]

Apologies for selective quotation but that is simply NOT TRUE. We have rented for several years, as have many of our friends so have first hand experience of this for good and bad. Granted, there are a few bad apple tenants where it's difficult for the landlord to legally evict them after months and months without paying rent or whatever. However the overwhelming majority of tenants are decent and trustworthy people who look after the property (after all, it is their HOME so it's in their interests to look after it) but get shafted by landlords with no legal recourse.

You wouldn't believe the stories and experiences that are actually very commonplace amongst renters. It's just that landlords (and regular homeowners) have absolutely no concept of what it's like to live in someone else's "investment" with no security of tenure, sky high agents fees and at the mercy of the landlords whims. Many landlords are equally decent people who treat their tenants properly, but many, MANY of them are not. Tenants do NOT have"too much power" IMO.

 

I agree wholeheartedly with LizzyTinKnicks. I have rented for close to 10 years, for various reasons, first in the home counties and now in London. The "them and us" way in which tenants are spoken about, is thoroughly disrespectful. I am sure there are many scum bag tenants, and there are also many scum bag landlords. But there are good versions as well.We do not exist merely to pad out the private landlord's pocket! However, I accept that I choose to be a tenant, but living in an area where 2-bed flats can reach £500k +, taking that step into a huge 25+ year loan, can be daunting, particularly when not being a super-high earner.

 

How about a relationship with tenants paying their rent on time, not trashing the place, and in return they are treated with respect and their landlords then choose to keep their home (yes it's your house but it's my home) in a liveable condition.

 

And tenants in the UK have very little in the way of "power" FYI.

 

end of rant :swoon:

Edited September 6, 2013 by vickyplum

[vickyplum]

I love the comment about offering some month(s!) up front...

If we could all do that, we'd be buying not renting.

 

Me and my OH did this with our last rental (offering up 6-months in advance is not quite a deposit to buy a place) and it works a treat with landlords.

[fifi69]

The OP is in Melbs, I know nothing about the market there but it is def not like that in Perth at the mo.

 

as has been said before rentals being advertised at lower rates and are on the market for a while.

 

So if anything trying going in lower, not higher here. Also ask for the date of entry to be changed if it doesn't suit you.

 

Landlords in Perth has been taking the mick for a while, lets turn the tables on them

[buzzy--bee]

,not sure i would ever offer more than was being asked for a rental tho,no telling where that approach might lead if it became common place

 

It already is commonplace in areas where there is a lot of competition for rentals.

 

tenants in the UK have very little in the way of "power"

 

Tenants in the UK can stop paying the rent completely and then cannot legally get evicted for months and months. So the tenants has far too much power in the UK. Imagine if the reverse were true, that the landlord could evict the tenant and then legally charge them rent for months and months afterwards!

 

BB

[Maruska]

My friend is renting in Brisbane and had 1 not so good experience with a landlord who wouldn`t repair/replace an item that wasn`t working when she moved in. After that, she rents through a real estate agency ( found her first rental on gumtree). Her experience was very good so far, there is a contract between her and the realtor and if anything needs to be fixed, she`s got a number to call 24/7 ( not the landlord, she never even met him/her). Looks like you pay more this way but she said it was worth it for the peace of mind.

[Peach]

And tenants in the UK have very little in the way of "power" FYI.

 

In addition to BB's comments about the difficulties of evicting non-paying tenants (which I 100% agree with), UK tenants are allowed by law to keep refusing the landlord access (even if the access is to show prospective new tenants around). The tenants right to 'quiet enjoyment' of their home supersedes the landlords rights as owner.

[vickyplum]

In addition to BB's comments about the difficulties of evicting non-paying tenants (which I 100% agree with), UK tenants are allowed by law to keep refusing the landlord access (even if the access is to show prospective new tenants around). The tenants right to 'quiet enjoyment' of their home supersedes the landlords rights as owner.

 

If we are always going to give the example of bad tenants, then yes, the landlord is always going to look hard done by. It's certainly a hot potato subject - worldwide it seems! Always many good and many bad aspects from both sides.

[Peach]

If we are always going to give the example of bad tenants, then yes, the landlord is always going to look hard done by. It's certainly a hot potato subject - worldwide it seems! Always many good and many bad aspects from both sides.

 

Neiter myself have 'given examples of bad tenants', but we have quoted where tenants have rights that they don't in Australia.

[wolvesaussie]

Here is a question for you buzzy... You have great long term tennants in place, they never cause u any problems and they look after the house... You then try to put up their rent buy $30 a week say..... we say screw u (nicely of course ), we are not paying anymore... would you get rid of us and take a risk on a new people who could be a bad payer, or a nutter etc, probably agent fees and maybe a period with no tenant... Reason I ask is when I rent out my house, if i have tenants I am happy with, I will never put up the rent... but i have rented myself and every year the landlord wants to put up the rent.... time to call their bluff and say no I am not paying anymore I think.. just wondered what your view on it was