Rents rose by a record 10.2% in the last quarter of 2022 correspondingly we saw claim values rise by 11.6% for the same period.
What this means is that although we currently have record low vacancy rates, the amount of claims being lodged have increased substantially.
Now this is only logical as rents are rising but incomes are not keeping pace and when you add this to the increased cost of living you can see how important it is for an owner to have the Barclay MIS subscription in place as a backup.
We have also seen that offices who use the support services that form part of the subscription have experienced either a reduction in number claims, or a significant reduction in the amount that a tenant owes. This is because we are able to work together with your office from day 4 of arrears.
This rental issue is not isolated to capital cities but is just as critical in smaller towns, people who are desperate to secure a property are entering into rental agreements they know that they cannot sustain.
So, on the surface the higher rents that owners are currently obtaining look good for owners, but the corollary is that the debts are substantially higher we now regularly see claims for $8000 plus where 12 months ago this was not a regular situation.
Another major support system offered by Barclay MIS is Tenant Track which is a completely free default tenancy data base that you can lodge defaulters onto or search applicants, why would you want to support a system where you are charged to carry out a search for information that you supply for free.
