Hi, we are trying to rent our unit at the moment, the agent mentioned a guy in the navy is keen, though mentioned something about a 1 month notice in case of war etc…no bond would be lost either. Apparently the defence force pays the rent for this person. Does anyone have experience of renting to the “forces” and what I should think about putting in the lease to protect us? Or is it just “a forget about it”. Cant see how this could be attractive to a landlord, unless you hiked up the rent to minimise the risk?
Thanks for any advice,
When I was in the Army we were told to make sure our leases had a clause that if we were moved by the Army that we could show written evidence and end the lease without penalty. Rarely did I have to write such a letter for my soldiers.
Is this guy actually on a ship or a shore posting?
If he was a good tenant in all other respects and there weren’t a lot of other choices then I would take it.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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Thanks Simon – not sure re his posting, will confirm with the agent. Not knowing a lot about the typical movements of a seaman, though I do have a friend who has a friend..and they get shipped off and about all the time, and I guess in todays environment, the chances are high. I’m not sure if the “move” would be e.g a 6 month posting e.g. to the middle east, or a base move etc…I’ll see if I can get the answers.
Having prevoiusly been in the navy for six years, I can safely say you may be on a winner renting to defence force person.
1. The navy may subsidise up to 100% of the weekly rental. (Hint find out what the subsidy is and you may find you can upp your rent considerably).
2. There would be major repurcussions if the navy member defaulted in any way, and you would have an easier time chasing up the government, than trying to track down a tenant that disappears.
3. The biggest advantage is that the navy member may be away for up to six months but would still like to keep the place and therefore pay the rent whist away. Therefore your place is in effect empty (no wear and tear) and still getting the rent in.
4. The cons would be the same as what any other type of tenant may represent.
5. Yes, they may have to vacate the property at short notice, but if you can upp the rent to account for this then it shouldnt be a concern.
Hope this helps
being in the navy for 15 years i can safely tell you what to do.
yes as a defence member we are told to get a “defence clause” written into the contract, just in case we have to move out of the area at short notice. it doesnt happen much these days but it use to happen to me all the time.
the defence DOES NOT PAY 100% of the rent, they pay about 50%
ie for every one weeks rent the member pays the defence pays the next, up to a maximum.
the maximum varies depending on the member.
ie married with 4 kids will get a higher rent ceiling than a single member.
the single member cant go out and rent a 4 beddy house, Defence will only pay him for a 2 beddy unit (for example).
the way i used to get around it was live in a 2 beddy unit, but in a yuppie suburb, thereby getting the most for my money.
if the member is serving on a warship. this is great.
what happens is after 21 days out of sydney or rockingham.
the sailor doesnt pay the rent, defence foots the bill for the entire 100% until the member returns.
usually when at sea we would organise a direct debit, actually as soon as i got a place i would direct debit.
hope this is some help.
cheers
shaunLead, Follow or get out of the bloody way
Hi Shaun,
Well, I was close. I am sure things have changed a bit as you say.
But I am sure you will agree with me that a landlord can get a good deal by renting to a defence force person.
Cheers
oh yeah, definetly. renting to defence is great.
as someone said. if they dont pay rent. just find out what ship or establishment they are on and write to the commanding officer.
the money would be very short coming. the only downside to this is you would get the young sailor into trouble.cheers all
shaunLead, Follow or get out of the bloody way
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