Every property owner would like ‘perfect’ tenants, but how do you go about finding long-term renters who will treat your property with respect? Selecting a the right tenant is the first step in a comprehensive risk management strategy for property investors. Following are some simple tips;
1. Ensure the property is presented in A1 condition, inside and out
You need to sell the benefits of your property to potential tenants and present it how you expect them to keep it. This includes paying attention to the appearance of the home and making sure it’s clean, tidy and well maintained. If you present it in "A1" condition you are more likely to attract tenants who will keep it that way. .
2. Choose a realistic asking rent
Keep an eye on other properties in your area and the level of rent that is being asked. This is so much easier to do now with access to property sites on the Internet. If you set your rent too high you may deter quality tenants and reduce the number of applicants to choose from.
3. Take advice from your property manager
Property managers know the local market, they research and conduct comprehensive CMA reports analysing the achievable rent.
4. Be tough on reference checking
Property managers have exclusive access to tenant default databases, credit history and information on tenants who have absconded without paying rent or have damaged property. Application reference calls are also a vital part of the process.
5. Stay patient
The first application is not always the right tenant. While most property owners want tenants in the property as soon as possible, it is often worth holding out that little bit longer to find the best possible tenant, rather than the quickest possible tenant.
6. Make sure you have adequate landlord insurance
There are no guarantees that a well-screened tenant will turn out to be a perfect tenant, so landlord protection insurance is a must. You can never predict change in circumstance that could lead to loss of rent or damage to your investment. Make sure you research your products and even ask your property manager for some options to consider.