Tenants are fleeing, Landlords are hurting. What to do
With the staggering rise of rental vacancies hitting the Perth market, landlords are facing even more heartache with tenants skipping out and leaving them high and dry.
Perth’s economic woes have impacted considerably on the average investor, with tenants fleeing leaving no forwarding contact details, extensive damages and high unpaid bills. Whilst they are losing their bond this seems to be a small price to pay in order to escape from the crippling costs they are facing. The crisis has reached boiling point with an increase of 30% of Landlords seeking bond payouts and up to 20% more Landlords claiming arrears and damages that exceed the bond in the past 6 weeks compared figures from the same period in 2015 according to the West Australian.
Finding a happy medium
Mavin Real Estate Property Manager, Bronwyn Pollitt predicts tough times for landlords. She states that in this current climate you need to be working for both the tenant and the landlord in order to reach the best outcome for everyone. It’s a renters market at the moment so is it not better to reach an agreement that will benefit both parties financially and emotionally? Some Landlords have felt pressured to take on high risk tenants because of the high rental vacancies and in doing so are not conducting the right due diligence they may have once upon a time. This can only lead to heartache and stress for landlords already concerned with how they are going to meet their obligations as the months go on.
But who’s to blame?
The tenancy advocates say it’s a common story, with an increasing number of renters who have lost jobs, are struggling with mental health issues or lapsing deeper into drugs and alcohol. But is it just the tenants who are to blame? There are claims that some landlords, struggling with investments purchased during the height of the boom, are delaying or refusing to do regular maintenance on properties prompting tenants to break their contracts.
As a landlord, understanding the current Perth market condition is critical to avoid unnecessary financial loss. It is therefore more important that ever to have an experienced property manager looking after your investment property.
To discuss your situation, please contact us below