Earning money through a rental income is one of the most popular and potentially lucrative ways of investing in real estate. However, it is not an easy job. Finding the right, long lasting tenant for your investment property can be a difficult task. As leaving your property vacant for long periods of time is a cost no investor wants to swallow, and many do not properly account for.
Therefore it is important to ensure that your property is appealing for renters to want to live in, ideally for a long time. Here are some tips and tricks which can help you find and secure a long lasting tenant:
Form a good first impression
The first impression of your property can be the deciding factor in securing a potential tenant. As most renters will go to multiple inspections when trying to find a new rental property, you will want to make sure you stand out from first glance. This means ensuring your property is completely clean and presentable for inspections. If anything needs cleaning or is not up to date with repairs anyone inspecting your property will notice. Untidy or damaged properties will be unappealing as they will suspect that it will remain that way throughout their tenancy.
Make repairs and renovations
Following on from this, it is important to prepare your property for tenants thoroughly. This includes keeping up to date with any maintenance required before securing tenants and also continuing throughout their lease. Complete any upgrades needed on the building before inspections to make sure the property is in the best condition it can be.
It is also possible to increase the appeal of your property by making improvements or renovations. Simple things such as painting the walls or replacing the flooring will make a big difference overall. While you have tenants, continue to keep an eye out for things which may need to be upgraded to ensure continued satisfaction on their behalf.
Include appliances or amenities
Most rental properties include a stove at minimum, and often additional appliances as well. Choosing to include appliances such as a washing machine, dishwasher and fridge may be an additional expense in the offset of your rental investment, however you will see the benefit of it with increased interest from tenants. By including these whitegoods, the quality of life of your tenants will be increased, which will encourage them to continue renting in your property on a longer term basis.
If you are renting out a commercial property, including additional amenities will have the same impact on your rental appeal.
Know your responsibilities
Make sure you are aware of what your responsibilities are as a landlord. There are many things which you are required to cover the costs for if damages or accidents occur. Having a full knowledge of these will mean you are able to properly plan for any potential expenses regarding your rental property.
Your responsibilities in renting out a property also include ensuring the structural safety of the property, that there is no mould, and that there are working fire alarms in any residential property.
Maintain good relationships with tenants
By listening to the issues your tenants raise and resolving them quickly, you will form a good relationship with your tenants. Being on good terms with tenants will help you to have longer occupancy periods, which is your goal as a landlord. The longer a tenant stays in your property, the less work you have to put into managing it.
Ensure you charge the correct rent
It is hard to figure out what rent to charge your tenants. Charging either too high or too low of a rental rate can damage your investment returns. If your rental rate is too low, this will reduce your profits. However if you are charging an amount well above what is fair, you will have a harder time find and keeping tenants, meaning additional cost from real estate listings and vacancy costs.
When deciding on rental rates it is beneficial to conduct a property valuation for rental determination purposes. Our expert valuers have over 20 years of local experience and are able to provide you with the accurate current market value of your property, as well as fair rental rates based on your properties condition and comparable rent prices in the area.