Imagine you woke up one morning and found out your investment property was on Airbnb.
Your tenant, who you thought was looking after your property is now letting anyone and everyone in.
What are your rights? What would you do?
Today we’re going to have a chat with Leanne Jopson about what your rights are and how you can prevent this.
I’m also going to share in my mindset moment, six things successful people only ever do once.
In our first segment, I’m going to chat with Ken Raiss about whether Australia could fall into a recession. Are we in trouble? What could be ahead? What should we watch out for?
You’ll find out in today’s episode.
Could Australia really fall into recession?
What is a recession? A recession measures how the economy is growing measuring GDP.
Every quarter is measured against the previous quarter.
A recession is when the value of goods and services (GDP) has fallen in two quarters in a row.
According to Ken Raiss, if a recession did occur now, the bounce back would be relatively fast.
The negatives at the moment are subdued property prices and wage growth.
But more people have jobs than ever before and for most people, the ability to pay their living expenses and home expenses is driven because they have a job. The unemployment rate is at the lowest it’s been for quite some time.
There’s a lot of activity in the economy and money being generated.
The RBA has relaxed its restrictions on home lending. APRA have reduced the gap that they require to show that people have an ability to repay.
We also have a more stable government, we’re seeing a stimulus by the government at both the state and federal level, and we’re seeing growth in iron ore and coal, both in price and volume.
Additionally, population growth is up.
These are all signs that we should be optimistic about the future of Australia’s economy.
What if my investment property ends up on Airbnb? Leanne Jopson
Every state has slightly different legislation, but landlords do have protection against their tenants letting out their properties on Airbnb.
In Victoria, owners’ corporations have the power to impose fines on owners of properties where their tenants who disturb other residents. They can be charged a separate fine for each resident affected.
Across all states, landlords are protected because a tenant can’t sublet your property without permission. That restriction was briefly lifted in 2016, but now it’s back in place.
In New South Wales, planning laws limit the number of nights that a property can be let on a short-term stay basis (like Airbnb).
The key to finding out a tenant is subletting is having a professional property manager monitor for telltale signs. Some signs include:
- Key safes outside of properties
- Too many toothbrushes
- Empty or extra beds
- Lots of spare linen in the cupboards
When it comes to insurance claims for damage caused by an Airbnb letting, if you granted permission for your tenants to let the property, you will need to have your policy adjusted to cover that risk.
But if your tenants were letting the property without your permission or awareness, you’ll be able to make a claim for your damages.
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Organise a time to speak with Ken by clicking here: www.Wealth.Metropole.com.au
Some of our favourite quotes from the show:
“Sometimes we ignore our gut instinct about people, and it can get us into hot water.” – Michael Yardney
“If you make decisions based on what you may think feels good in the moment, then it’s very likely you’re going to fail to take care of your long-term plans.” –Michael Yardney
“If you’re not strong on detail, you’d better surround yourself with people who are.” – Michael Yardney
PLEASE LEAVE US A REVIEW
Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it’s your way of passing the message forward to others and saying thank you to me. Here’s how
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.