For landlords, finding the perfect tenants is a vital part of maintaining consistent rental income and reducing hassles. Difficult tenants can create further stress, and also become expensive for the owner of the property.
Common issues with less than ideal tenants include failure to pay rent on time, breaking rental agreements regarding pets or number of people allowed to live in the building, or damage to the property. All of these things can create a financial burden for the landlord, and make it much harder to track and plan rental yield.
Here are some tips to help landlords find the perfect tenants:
Know what to look for
In order to find an ideal tenant, you must know what to look features to look for. Here are some things to look for in a potential tenant:
- Positive track record of making payments on time
- Reliable source income you are able to verify
- Positive credit report or score
- Ability to pay an upfront security deposit
- No prior history of rental disputes or eviction
- No criminal record
- Able to provide good references
Do your own research
It is important to do research into what it takes prior to renting out the property. Make sure you know what it required of you as a landlord, and what is expected of tenants.
You should be clear on the processes involved with the tenancy. In addition, ensure you have adequately prepared the information you need such as rental agreements and details of the property.
Maintain the condition of the property
In order to attract quality tenants you must provide an appealing property. Take good care of your rental property, and maintain it to a high standard. This will help to make your property the top option for those who inspect it.
In addition to appealing to prospective renters, maintaining your property will encourage your tenants to stay for longer lease periods. If you have good quality feature and fixtures in your property it will increase the tenants quality of life and they won’t want to move on quickly.
Set fair rent
Setting a fair price for rent is an important factor in finding the highest number of tenants interested. This will allow you to be able to select the most ideal candidates from the applicants.
If you rent is much higher than other properties in the nearby area you will struggle to find tenants. This could lead to your property remaining vacant for long periods of time which will cost you money. Because of this, setting a fair rental amount which reflects the current market standards is a key part of finding tenants.
In order to decide of the correct rental amount, you must know your current market, as well as have an understanding on how your property measures up in relation to comparable rental rates in the area.
A property valuer is able to complete a rental determination or rent review to ensure you are setting a fair rental price, and aren’t over or under charging.
Once you have your property ready for occupants and have decided on the correct rent to charge, it is time to advertise your property.
Choose a reputable site to list your property on. There are many options available, so listing on more than one may be beneficial to get your property noticed by more people. Avoid sites that don’t seem high quality or genuine.
Make sure to clearly list the qualities and features of your property. This includes highlighting the positive aspects of its condition, location and amenities, as well as details such as number of bedrooms and bathrooms.
It is also important to include the negatives of your property, or things which may be lacking. This is in order to property filter through people who are looking for things you can’t provide. For example if your property doesn’t have a car spot make sure to make this clear.
Once you have applicants who you believe are a good fit for your rental property, you can begin the screening stage. This involves using various databases to confirm the information provided by potential tenants.
In addition to checking employment and previous rental information, you can take the time to call the references provided. It is especially useful if previous landlords are listed as you can find out more about what kind of tenant they may be.
This stage is a vital part in ensuring that the tenants you choose are a good fit. If you skip the screening process, you may be overlooking big issues which will cause you problems down the line.
Once you have found a tenant to move into your rental property, try to maintain a positive relationship with them as their landlord.
If they prove to be an ideal tenant, it will be beneficial to keep up this relationship as it could encourage longer leases.
Finding the right tenant is a core part of managing your investment property. While at first thought it can seem unrelated, the quality and security of your tenants can help ensure the profit and success of your property investments.
If you require a rent determination or rental review, our team at Melbourne Property Valuers have specialised valuers who can help you. Contact us today to discuss your valuation needs.