The Rise of Rentvesting: A Smart Approach to Property Ownership
“Rentvesting” is a strategy where you purchase a property in an affordable but less preferred suburb, while simultaneously renting a property in a location you desire.
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A final bond inspection is done at the end of tenancy to determine the final condition of the property and whether the bond will be refunded to the tenant. When damage has occurred, it could be as a result of ‘malicious damage’ or ‘accidental damage’ both of which are the responsibility of the tenant or alternatively it could be treated as ‘fair wear and tear’.
‘Fair wear and tear’ is something that occurs through normal use or normal changes that take place with the ageing of the property. It is a broad term and can be open to interpretation. The Department of Mines, Industry Regulation and Safety defines it as “a general term for anything that occurs through ordinary use such as the carpet becoming worn in frequently used areas”… So where is the line drawn? What is a tenant responsible for and what is a landlord responsible for?
If a bond refund was to be determined by the magistrate, they would consider the following;
Some grey areas that can be open to interpretation could include:
By being prepared you can help to determine the best outcome. At Blackburne Property Management Perth, we send the tenant a “Final Inspection Cleaning Guide”, highlighting the important areas that need to be addressed prior to vacating. We use it to set an expectation in relation to what needs to be cleaned and any repairs that the tenant may need to conduct or organise prior to handing the keys back.
For a smoother, stress free end to your leases or to learn more, contact our Perth Property Management team today.
Whether you have a residential or commercial property, we work to secure the highest return on your property asset. How? Our strategy paired with our experienced team achieve well above market rental returns for our landlords. Register for your complimentary appraisal and switch today.
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