The silly season is here. It’s a scary thought; Christmas is less than 4 weeks away! We all know it’s coming, but every year, sadly, some tenants get caught out and don’t prioritize their rent. According to the Wyndham Weekly ‘A steep increase in the number of renters being evicted from their homes has reached crisis point, according to Wyndham social workers.”
It is reported that police are executing at least 22 eviction warrants Wyndham Vale shire every month.
As a landlord, what does this mean for you?
Well, a few basic points to make sure you’re prepared in case things go pear-shaped include;
- Make sure your landlord insurance is up to date and it includes rental default cover.
- Don’t depend on the rent. Smart landlords either pay their mortgage themselves or have the funds sitting in an offset account. When the rent comes in, it goes into their offset account. If your mortgage is due to come out within a week of your tenants rent being due – you’re only asking for trouble! Even good tenants have the occasional slip up and can pay their rental late. If you depend on those funds coming straight in, you could default on your mortgage payment costing you more!
- If you’re looking to add to your investment portfolio. Seek sound investment advice – join our Landlord Coaching program! Don’t just believe what a sales agent is telling you, do your research and make sure you can afford the property you want to buy. You need to make sure that you can afford to pay the mortgage on your investment for a minimum of 3 months without a tenant after the property is ready to lease.
- Speak to your property manager. If you have any concerns about your particular situation, there is no harm in seeking advice. My motto is to prepare for the worst, and hope for the best.
At Investors Choice your tenant risks are much lower than landlords with typical sales focused agents and we are proactive in our communication with tenants, advising them of the importance of prioritizing rent over the Christmas period. As always we will work hard to get you great results and keep you well informed.