While an investment property is a huge asset, so are responsible, long-term renters, but finding a good tenant for your rental doesn’t have to be a headache.
Here are some tips you can follow to find a tenant that is a good fit for you and your rental property.
Choosing the Right Investment Property
Investment properties can be exciting and very rewarding if you make the right choice, so when looking to purchase, make sure you consider every aspect of potential properties from a tenant’s perspective.
Location & Neighbourhood
The location in which you buy will determine the types of tenants you attract. Being close to schools and parks will attract families while public transport and retail centres may attract young professionals.
Safety & Security
A safe environment is a powerful motivator for great tenants. No one wants to worry that their car or home is going to be broken into.
Profitability
Ask your agent about the local market value and average rent in the neighbourhood. Work from there to determine if buying a rental property is financially feasible for you.
Easy Ways to Upgrade Your Rental
You’ll be surprised at how a few quick upgrades to your property can increase its rental value. Changes as easy as trimmed back trees to increase natural day light, a fresh coat of paint, heat pump installation, new kitchen counter or light fittings can make all the difference to good tenants.
Advertise
One of the best ways to reduce vacancy time, attract the best tenants and increase your ROI with a rental property investment, is with great marketing and advertising.
Ensure you list features that tenants look for in a property:
- Move in, ready condition
- Included appliances
- Upgrades and renovations – this can even increase rental value
- Air conditioning / heating
- Parking
- Open floor plan and storage
- Outdoor space
A property manager can oversee the whole process with professional photography and creating a memorable property listing. These two aspects are key as using great photos and a good description could mean your property is leased in days, not weeks.
Looking for the Right Tenant
Take the time and do your research when looking for the perfect tenant, so you get it right the first time. You need to feel comfortable with the people moving into your investment property and have confidence they will treat your house with respect, so it remains in good condition.
Ask potential tenants for references such as previous landlords or their employer and once you have a shortlist of candidates, run background and credit checks.
Set your expectations early on. These standards could be as simple as paying your rent on time, not smoking in the unit, not allowing pets during the lease agreement period, or advising of maintenance issues within a set time frame and keeping the property clean and tidy.
Most importantly, establish open communication. This helps you to understand your tenants and their situation, meaning you can keep them happy and assists in extending their stay in your rental property.
Sealing The Deal
Finding good tenants to sign on the dotted line can sometimes be a long and drawn-out process. However, taking small steps to ensure that your investment property is up to scratch in terms of features and attractiveness, along with securing the help of the right agency, can go a long way towards getting the right tenants for your property.
