PRESS RELEASE: Game Changing Real Estate Disruptor Launches Offering To Pay Rent To Landlords When Their Property Is Vacant
Sydney, Australia – 22 August 2019 – Certainty Property, a new firm that promises to disrupt the sleepy world of property management, has launched promising to keep paying rent to landlords even when their property is vacant or their tenant is in arrears. The company’s core philosophy – that the interests of property managers should be aligned with that of the landlords that employ them – is revolutionary but shouldn’t be.
By paying the rent from the date a property is vacant until they are able to find a tenant, Certainty Property has a substantial financial stake in getting the best outcome for their clients. This comes at a time when the vacancy rate in Sydney has more than doubled from 1.7% to 3.3% over the last couple of years. In fact, it now takes an average of 37 days for a tenant to be found in Sydney, and a similar amount of time in other capital cities.
“Landlords are starting to realise just how much vacancy actually costs them. Take the rent you would expect to receive for your property and multiply it by 5 and that gives you an idea how much rent you could be missing as a result of vacancies” Managing Director Cameron Black said.
The impact of vacancy on property investors varies greatly depending on the suburb where their property is located. In suburbs where there has been a huge increase in supply of apartments, such as Chatswood, the average time it takes to find a tenant has skyrocketed even as asking rents have fallen significantly. According to Mr Black, “If you can see cranes from your investment property, you should be seriously considering how much vacancies are costing you and whether your local property manager really has a serious incentive to get you a tenant quickly.”
Certainty Property’s rent guarantee also allows investors to lock in the rent they are currently receiving for up to five years meaning that they are protected against falling rents. Many investors assume that rents only go up, but the falling property market and deluge of supply have resulted in falling rents over the last 18 months. In some suburbs, rents have fallen by more than 20%. The ability to lock in rents gives landlords a degree of certainty surrounding their cashflows that traditional property managers simply are unable to provide.
Moreover, as part of their commitment to aligning their incentives with those of the landlords they serve, Certainty Property will also pay the rent out of their pocket should a tenant fall into arrears. According to Mr Black, “It is a property manager’s responsibility to find a tenant that pays the rent on time, every time. If they fail to do so, why should the landlord be out of pocket? That’s why we pay the rent instead and if we ultimately aren’t able to have it paid by the tenant we’ll wear that cost rather than our clients missing out.”
Certainty Property promises to ‘revolutionise the property management experience’ and encourages property investors to ‘join the property management revolution’. The prospect of investors receiving predictable cash flows from a disruptor that has a financial incentive to provide them with excellent service is one that landlords have relished, with a number of landlords already having signed up for the service.
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About Certainty Property
Certainty Property is a real estate disruptor that aims to revolutionise property management in Australia. When a property is vacant or a tenant is in arrears, Certainty Property pays the rent instead. Unlike traditional property managers, the incentives of Certainty Property are completely aligned with landlords. Property management done differently.
Contacts:
Cameron Black
Managing Director
0414 660 292
[email protected]
Simon Peisley
Director
0410 437 000
[email protected]
