Are any of your tenants also landlords?

The trend of young people buying their first property as an investment rather than a home has been the subject of widespread commentary – and it has important implications for property managers.

RentCover General Manager Sharon Fox-Slater said tenants who were also landlords were usually highly-informed.
“They’re not going to be fobbed off on maintenance requests because, as owners, they know the landlord has responsibilities. On the other hand, they’re more likely to empathise with the owner of their rental properties,” she said.

Being an investor-renter can be a potentially financially-savvy decision.
Investor-renters can take advantage of negative gearing in the early years of ownership when debt levels are at their highest.

And, by renting, they can often afford to live in a far more appealing area than where they could afford to buy.

Some live in the property they own for six months or so to establish it as their principal place of residence and escape future capital gains tax – as well as qualifying for any government grants – although they need to move back in to the property in less than six years to maintain the exemption.