Lease breaking is a risk factor for landlords to consider
THIS week Prime Property Investment Australasia chief property analyst Alison Knell shares her insight into lease breaking.
Lease breaking is generally not a problem in a very tight rental market, but is a major issue in a softening rental market as tenants 'jump ship' to get cheaper or better living arrangements or to leave town.
Once tenants have choice they will often readily break a lease.
This is why so many experienced landlords look for rental guarantee properties that are immune to rental market fluctuations and deliver certainty over the long term, and reduce the holding costs of any property.
I enjoy selling property such as Gladstone Central Plaza because it offers rental guarantees with no management fees and no vacancy factor.
When tenants choose to move they often prefer a residence with a lot of facilities like pools, spas, gyms and cafes and leave the suburbs behind.
Gladstone Central Plaza offers these extra facilities which make it a tenant's first choice in any rental market.