The number of Australian’s renting is officially on the rise. While this is great news for residential property investors, it’s not the only thing heading north.
In recent years, tenants who are illegally subletting to strangers, especially tourists and holiday-makers has increased at an alarming rate, leaving the property owners exposed to a range of risks and costly consequences.
Given the high property prices in many cities, particularly in Sydney and Melbourne, many first home buyers are purchasing property in areas where they can afford but choosing to lease it out and live elsewhere. This has meant an uplift in the number of first-time landlords in the market.
Like many Firsts, becoming a landlord is both exciting and daunting. It’s a great way to earn ongoing income and take advantage of some of the tax breaks offered on property expenses.
But the business of being a landlord involves risks and responsibilities and requires active management, as well as the very important decision on who will manage the property.