How financially secure is your tenant?

Here’s an interesting article from Kate Burke on the SMH Domain website this week regarding tenants and bonds. Evidence suggests that there has been a big increase in those renting out their home or an investment property in affluent suburbs such as Vaucluse, Bondi, Watsons Bay and Bellevue Hill needing to make a full claim against their tenant’s bond at the end of the lease. According to Fair Trading data, Tenants in these suburbs collectively lost hundreds of thousands of dollars in bonds last year, with one notable tenant surrendering $50,000 alone. Experts say this has less to do with how tenants treat a property and more to do with their financial security, with rent arrears the most common reason for people losing a full bond.

An interesting article to consider especially at the moment with decisions being made by investors/owners whether to sell or rent out their property.

> Read full article here