18/06/2026
Quick question for landlords:
Would you rather lease to a person with a job and assets, or a $2 company with no personal guarantee?
Make sure your property manager has asked the same question, as some may not even be aware of the risks associated with such agreements.
Why it matters:
Some companies rent residential properties and then generate income by licensing, rooming, or subletting the property to multiple occupants. This can create additional risks including higher wear and tear, increased occupancy, insurance complications, compliance issues, neighbour complaints, and difficulties enforcing lease obligations.
If the company defaults, enters liquidation, or has limited assets, recovering rent arrears or damages may be significantly more difficult. Before approving a corporate tenant, landlords should understand exactly who will occupy the property, how it will be used, whether subletting is permitted, and whether directors have provided personal guarantees.
Don't just ask who the tenant is. Ask who will actually be living there and who may also be making a profit from your property, which could actually void your written agreement.
At Renting Adelaide, we specialise in understanding tenancy legislation and identifying risks before they become costly problems. If you're unsure whether your investment property is adequately protected, reach out to our team. We're always happy to help landlords understand their risks and the practical steps available to manage them.
