The goal for most investors is to maximise financial return and maintain the investment property – picking the right tenant plays a key role in ensuring success
With vacancy rates relatively tight across most markets, landlords are spoilt for choice when it comes to selecting a tenant.
While choice is certainly a good thing, too much of a good thing tends to foster a whole range of new problems – and the same can be said for finding the right tenant in an overcrowded market.
It should, nevertheless, be high on the priority list of all investors. The goal is to find a tenant who not only takes care of your property but also makes rental payments on time and causes minimal stress or concern to you, the landlord.
Good tenants are therefore an essential ingredient in a sound property investment strategy. So how should landlords go about attracting them?
- Firstly, the method by which you find your tenant will need to depend on the type of tenant you are trying to attract. If your target market is families in the suburbs, local newspapers and property websites such as Domain or realestate.com.au are the perfect channels to use.
- On the other hand, if you are targeting inner city singles or students, social networking sites and campus notice boards can be a great way to find new tenants.
- Once you have found a couple of possible candidates, you will want to do some background checks and contact their place of employment to ensure they have the capacity to pay rent on time.
- Ask for references from other places that they have rented and check why they are moving out of their current place. This will give you a good idea about the relationship they may have had with their previous landlord.
- Once you have decided on the perfect tenants, ensure they sign a rental agreement, which can be purchased on the internet for as little as $40.
- Alternatively, you can enlist the help of a property manager to oversee the selection process as well as manage the property on your behalf once it is let. Their service will include rental collection, maintenance and tenant liaisons.
- Hiring a professional can be a smart move, but the services do come at a cost – usually around 7.5 per cent of the rental value.
- If you’re unsure about how to find an agency to manage your property, or to discuss how tenants may impact your mortgage, please feel free to get in touch.