Weak economies can boost rental markets, as renting is cheaper than purchasing in the desired neighbourhood, and often the only option for people struggling in tough financial situations, research released by property group Seeff has disclosed.
The group said people rented for a variety of reasons, including a willingness to live in a more expensive suburb than the one in which they can afford to acquire property.
The company anticipates rental demands will rise significantly towards the festive season but warns that potential tenants could find a suitable rental, only for the owner to sell the property while the lease is current.
“Tenants should be aware of the Roman-Dutch principle whereby they can remain in the property for their entire lease period under the same terms. This may be a selling point for investors seeking a property with a good tenant but it is important to know only a tenant breach can trigger a lease cancellation,” the group says.
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