Your choice of who will rent your investment property is as important as your choice of the property itself. This is because a good tenant will not only provide you with a consistent income stream, but it will also increase your chances of having an ongoing tenancy in the long term, therefore ensuring your property is always producing an income. As a landlord, that’s what you’re looking for: a tenant who pays their rent on time, will look after the property and will stay there for the foreseeable future.
How do you find that perfect tenant though, we hear you ask? Here are a few tips to help you sort through the tenant applications:
- Advertise your property. Naturally, the first thing you have to do is spread the word about the property you’re putting up for rent. The internet has made it easier to do this as there are countless websites that will let you advertise your property for free or for a minimal fee. It’s not enough to just advertise your property, however. You have to make sure that your ad effectively attracts the tenants you want. Thus, it helps to take photos of the property, both of its exterior and interior, and couple it with text or copy that will entice people to visit the property.
- Narrow down your options. It will be much easier to pick that perfect tenant if you narrow down your options right from the start. The type of property that you own and its location will usually give you a good idea on the type of tenant that you will be able to attract. A house with several bedrooms located in the suburbs will usually attract upper- to middle-class families. Meanwhile, a unit located to the city centre is often better suited to expats or people looking for a place nearer to their place of work.
- Do a background check. You also have to know who you’re dealing with prior to giving them the keys to your property. For one, check with their previous landlords. This will give you an idea of how they are as tenants, such as how prompt they are at paying their rent, how well they took care of the previous properties they rented, and other things that may be important to you such as whether or not they own pets. Of course you also want to know if your potential tenant can pay the rent. You can do this by asking about their current employment status and by checking it with their employer. Ask their employer relevant questions that will give you an idea of the potential tenant’s personality and their financial status.
Overall, finding a perfect tenant starts with knowing the qualities that you’re looking for in one, and then finding an applicant that fits those qualities. To do both, it helps to know what type of property you have and the kind of tenants you may be able to attract, as well as performing a background check on them so that you can be sure that they are indeed who they say they are and can do what they say then can.