It is widely thought that people only rent properties because they can’t afford to buy. These days, however, the property landscape is changing and people are choosing to rent because it suits what they want from their lives. If you are a landlord with a house for rent in Brisbane (or anywhere else for that matter) this information is critical for you to be aware of.
The common misconception about the reasons people rent paints a picture of unloved properties occupied by people who want to pay less and who would move somewhere else if they could get their hands on some cash. It raises expectations of investment properties being occupied with a string of unsatisfied tenants, one after the next.
In reality, some Australians are renting instead of buying as a positive choice and in fact one third of all tenants stay in a property for 10 or more years*. For Position One Property landlords with a house for rent in Brisbane, we know this means the possibility of a long and fruitful relationship with your tenants that offers security and satisfaction for both parties involved.
Reasons people rent
In a changing cultural landscape, Australians are making different choices from those they may have made half a century before. The reasons for renting are changing and with it the opportunities and responsibilities a landlord might face. Here are some of the common reasons your tenants may have rented your property and what that might mean for you:
1. Saving for a down payment
The tenants that still dream of owning their own home are never going to be long-term tenants but it doesn’t mean they won’t care for your home. These people will be enjoying the lower overheads that rental affords while hoarding their savings for a down payment on a property in the future, and possibly repairing their credit rating to be approved for a loan.
It’s worth noting that it may take them some time to achieve their goals and in the meantime they’ll be taking care not to endanger their bond by causing damage to your home. They’ll also be avoiding the costs of moving around. Taking care of these tenants can pay dividends if they recommend your property when it’s time to move on.
2. Can’t afford to buy in their chosen area
The rental map is often very different from the property buyers’ map, where purchasing properties in one suburb is affordable and in others it’s not. Tenants who are fiercely loyal to a particular suburb but simply can’t afford to buy there are ones who have adopted rental as a long term choice.
This is where if you have a house for rent in Brisbane suburbs that are included in catchments for some of the well-reputed Government schools, you may do very well. If this is an area you wish to know more about, you may find the following link handy : School Catchment Maps – http://www.qgso.qld.gov.au/maps/edmap/
When they love a location, there’s a high probability your tenants will stay. The implications of long-term renters is a stable income for you, as well as losing the hassle of locating new tenants time and again. Creating an investment property that feels like a home – making some efforts with fixtures and fittings and extending the use of the outdoor space – helps increase the likelihood of tenants staying with you.
3. They have alternative investments
Crazy as it may sound, buying a property is not the best option for all. In fact, as many house owners move on average every 7 years, the savings made by not owning your own home soon add up. Without the additional overheads of buying and selling fees, council rates and insurance as well as maintaining the property, quite significant savings can be made.
Renters can channel these savings into alternative investments that do not have the overheads that properties involve. Once again, this translates into long-term tenants for landlords who make an effort to care for their investment property and meet their tenants needs.
4. They prefer to have less responsibilities
In today’s hectic working world, when you can turn to your landlord or property manager to deal with a leaking pipe or exploding appliances, then rental starts to look like a good deal.
Although this may be one of the reasons landlords dread (after all, if your tenants aren’t responsible, why should they care), this is simply another reason that can entice renters to stay. Without the danger of unexpected costs, the regular outgoings of renting your home are reassuring for some. A strong rental agreement and security bond can protect your property from careless tenants, while a well-maintained home and access to a reliable property manager when things go wrong can be a reassuring prospect that’s hard to leave.
5. They like the flexibility that renting affords
Home owners are always in danger of not being able to sell quickly, easily and cost-effectively if they wish to move on. Combine this with the high costs of buying and selling and you can see why not everyone wants to own their own home.
As we have seen, however, some tenants have more stable lifestyles than many homeowners who sell in around 7 years. Sometimes the ability to move on is what your tenants prefer, but that doesn’t mean they will immediately move. Flexibility is also having swifter access to your savings for other investments or a less pressured lifestyle, all of which renting continually affords.
Take care of your tenants
Understanding why your tenants rent takes some of the fear out of being a landlord. It’s good to understand that many tenants nowadays are looking for a long-term home and not planning to leave as soon as they can.
This translates into families and individuals who wish to rent a home that is cared for, from a landlord who will swiftly respond if something goes wrong. Get this right, and you have less chance of having to re-advertise every few months and less risk of losing income while the property’s not let.
At Position One Property, we can advise on the best investments you can make to attract the kind of tenants who are likely to stay. We offer a comprehensive property management service that makes renting your Brisbane property simple and clear. Get in touch now to see how we may be able to help.
Contact the Position One Property Team Now on 07 3843 4511
* http://www.domain.com.au/news/the-australians-who-prefer-to-rent-not-buy-20150721-gigib6/