So many people are searching for rental accommodation as a place to call home. For a multitude of different reasons, people choose to rent a property rather than purchase a property.
Rents are set to keep rising due to housing supply and demand. As housing affordability drops and more people are moving around to find better housing affordability there are a higher number of opportunities for investors to secure great tenants.
Finding the right tenant is crucial to the success of your investment property journey and knowing how to do this can be tricky.
Giving extra time during the tenant selection process with thorough questioning techniques to determine their requirements and suitability of the property to the tenant and the tenant to the property goes a very long way. That little extra effort may save you hundreds or even thousands of dollars and hours of time in the long run. You want people who pay on time, people who look after your property as if it were their own and of course be diligent in reporting any concerns to you.
A strict screening process is the best defence against bad tenants. Detailed tenancy application forms give the landlord a chance to ensure that the applicant is a safe choice before committing, confirming reference checks and income is mandatory as is the relevant checks on the tenancy databases which your agent can do for you.
Taking the time to select the right tenant before handing the keys over to your property to a complete stranger is paramount.
Here are a few key things that you need to know and do:
- Adhere to the relevant legislation
Your desire to find a good tenant for your property is not an exemption to adhering to the relevant legislation for your state or territory. You must always adhere to these to avoid charges for discrimination or other claims. You cannot discriminate based on race, colour, religion, sex, family status, disability and so on.
- A good tenant has good credit
You are looking for a tenant that is financially responsible. If they are responsible with paying their bills, most likely they are also responsible with paying their rent on time. With this in mind verification of affordability is a must, as a general rule the rent should not be more than a third of their income.
- Education and communication start with the end in mind
If you communicate well with your clients, set the foundations of your relationship from the start, how it’s going to work, the rules and what is expected you will find that the relationship during and after is much more pleasurable. Educate, nurture and inform your clients and the rest is a breeze.
These are just a few of the things that you need to consider, If you want to know more about how to get and keep great tenants, contact us today for a complimentary consultation.
Fran & Jo x