Would you move into a rental property in Canberra if you didn’t have to pay a bond?

As the cost of living continues to rise, tenants are having to fork out higher percentages of their income to pay for weekly rent, but eligible tenants may soon be able to secure a rental property without having to foot the bond.

The Property Collective is trialling a new initiative to attract renters, offering a collection of one-bedroom apartments in Aspen Village in Greenway.

After recognising the difficulty some tenants are facing, director of property management Hannah Gill, who identified bond payments as a “pain point” for tenants, decided to pilot the idea. 

“We identified in our other properties that, particularly for one-bedroom apartments, tenants’ income-to-rent ratios are getting higher and higher,” she said. 

“When we talk about rental stress, that is classed as anything over 30 per cent of income going to rent … now we are seeing more like 35 to 40 per cent.

“So we thought, let’s offer half a dozen one-bedroom apartments where tenants can move in without paying a bond.” 

According to the latest Domain Rental Report, Canberra is the most expensive capital city in which to rent a house or unit, recording a median weekly asking price of $690 and $550, respectively. 

Gill said the five one-bedroom apartments were available to anyone who wished to apply, and regular processes would still be followed for tenants. 

“We know the majority of tenants are good, they don’t do damage and they pay their rent, they want to do the right thing, and when they leave there are no claims needed from bonds,” she said. 

“Anyone can apply, it’s not an exclusive opportunity, and we will stick to the same process to figure out if the tenant can afford and care for the property.

“Once we establish those two things, anyone can qualify.” 

Residents of Aspen Village have access to a grocery and bottle shop, bakery, gym, pool and sauna.

Having identified the importance of bonds to protect landlords, The Property Collective has figured out a plan to ensure landlords are also not at a loss.

“Obviously the bond is there to protect the landlord if something goes wrong, so for real peace of mind for this pilot, we will be funding if any of those properties do have claims,” she said. 

“We are backing our tenant vetting process thoroughly, to say we are confident it won’t be an expensive exercise for us.

“We just think it’s an opportunity to try something different, in a market we know is undersupplied and really expensive, to ease the pressure for some people.”