It is becoming common practice for rental applicants to offer more than what the property is being advertised for.
While on the surface this appears to be a win for the owner, it is important to ensure that this increased offer is sustainable by the applicant. As an example, if this extra amount moves the applicant to paying out more than 30% of their net income in rent, the warning bells should be starting to ring.
When you look at the above and factor into this the latest data from the Australian Bureau of Statistics, showing almost 73% of households have some form of debt. Some 30% stated that the amount owed was three times or more than their income.
Also in the most recent report from 25 March 2021, it was revealed that credit cards were the biggest contributor to the increase in short-term debt. This would suggest that many people are living off their credit cards for day-to-day expenses.
Now more than ever it is important for owners to have in place a cost-efficient strategy, should there be a default in the future. With the Barclay MIS subscription, we are there to work with you if need be, from day 4 of arrears. The focus has to be on not just having an option to obtain the monies owed, but also reduce either the amount of the claim or preferably not having the claim at all.
Owners would rather not have a claim than having to lodge one.