Moving can be expensive. Shifting furniture and possessions can cost hundreds, if not thousands of dollars, while vacate cleans, mail redirection, and other unforeseen expenses can put pressure on a tenant’s hip pocket.
Added to that, coming up with the rental bond (along with two weeks rent in advance) can be a real financial challenge to renters moving to a new rental property. In many instances, tenants have not received their bond back from their previous property and face having to pay the bond for their new lease in the same period.
In fact, 60% of Australian renters surveyed in a recent rent.com.au survey about their most recent moving experience said they found it hard to come up with the rental bond.
Whilst 48% of respondents had enough savings to pay the bond, 52% said they had to borrow or finance the bond payment. 17% of those surveyed resorted to borrowing funds from family and friends.
A common misconception in property management is that if a tenant doesn’t have sufficient funds to pay their bond, then they’re a risk. But property managers and landlords need to consider the full picture when assessing a tenant’s financial capacity to pay the rent.
A tenant’s income, employment stability, and previous payment history should all be taken into consideration.
The reality today is that there are a large number of funding options available to renters, such as low-cost loans like rent.com.au’s RentBond, credit card advances, to potentially expensive pay day loans.
Making bond payments easier for agents and tenants
In many cases, being able to offer a tenant a solution to pay their rental bond over manageable monthly payments can provide greater capacity for the tenant to manage their rental payments. It avoids the extra strain of having a large lump sum deducted from their savings or having to quickly pay back family or friends once they’ve moved into the property.
RentBond is a low-cost bond finance option, available exclusively through rent.com.au and its participating agents, which also includes a financial assessment of the tenant’s bank account in its approval process, therefore providing the landlord and property manager with greater peace of mind.