Australian landlords prefer good tenants to high rents according to new research from REA Group.

LANDLORDS might be characterised as money hungry investors, but when it comes to what they’re looking for in tenants they’d rather good renters than extra cash, according to a new report.

fe8bb0204829a7ee783018cd3deca960    REA Group first Chief Economist Nerida Conisbee said renters should treat homes like    their own if they wanted a discount from their landlord.

More than 75 per cent of landlords now say they consider finding the best tenant a higher property than rental income and 82 per cent believe getting the top tenants is more important than filling a property as quickly as possible.

The research comes as part of Realestate.com.au’s Landlord’s Need and Wants Report, which was presented at the Australian Residential Property Manager conference yesterday.

When it came to their dream tenant landlords were looking for someone who paid their rent on time and treated the property treated like it was their own home. About one in two landlords preferred couples as tenants to single people.

Troubles with tenants was high, with about two in three landlords reporting previous issues with renters.

Pets were also a divisive issue, with just 15 per cent of landlords always allowing four legged friends.

And while Baby Boomers pushing young buyers out of the market might be headline news, younger investors were now the dominant landlord group.

According to the survey, 25-34 years old was the most common age to start investing with 33 per cent of landlords investing before purchasing their first home.
REA Group first Chief Economist Nerida Conisbee said renters should treat homes like their own if they wanted a discount from their landlord.
REA Group chief economist Nerida Conisbee said with rental prices softening in parts of Australia, the research suggested renters could nab themselves a discount simply by being a good tenant.

48c040c1968b9991e20c8af34a6d0abc  REA Group first Chief Economist Nerida Conisbee said renters should treat homes          like their own if they wanted a discount from their landlord.

“There are two ways of making money out of an investment property, through rents, but also through capital growth,” Ms Considbee said.

“Landlords don’t want anything that’s going to damage the value of the property. So simply treating the home like it is your own, keeping it clean and being mindful of neighbours, can help create a good landlord/tenant relationship. ”CoreLogic data show weekly rents across combined capital cities fell by -0.3 per cent in July 2016 and remain -0.6 lower over the past year.

Despite the rental slowdown properties in inner city locations are still commanding high yields. This one bedroom studio in Surry Hills is on the market for $410 a week.
Half of the capital cities have seen rents rise over the past 12 months, including Sydney (0.4 per cent), Melbourne (2.0 per cent), Hobart (6.1 per cent) and Canberra (1.9 per cent).

Large rental falls in Perth (-9.1 per cent) and Darwin (-15.7 per cent) have pulled the combined capital average lower, with rents in Brisbane (-1 per cent) and Adelaide (-0.5 per cent) also lower over the year. Average combined capital city rental rates are $485 per week for houses and $467 per week for units.

The new research said landlords now care more about getting good tenants than they do rental income. This two bedroom apartment in Marrickville, NSW is up for rent for $580 a week.

 

 

Source: http://www.dailytelegraph.com.au/realestate/australian-landlords-prefer-good-to-tenants-to-high-rents-according-to-new-research-from-rea-group/news-story/28c8d4ff4dae4c8a44e04b15912950ac

Date: 9th August 2016

Author: ANNABEL HENNESSY, REAL ESTATE REPORTER, News Corp Australia Network

 

 

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