How To Find A Good Tenant!

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With a good tenant, you get what you give. In order to have an ideal tenant, you must have an attractive property while maintaining an upfront tenancy agreement.

So what kind of investment property should you consider in order to attract the right tenant? Condition and location are huge determinants of the type of tenants your property will attract. Consider the type of suburb, schools, shops, local amenities and business districts in the area to determine the type of tenant who is likely to be looking for a home in your area. When your property is located in an area renowned for its lifestyle options, schools or one that is in proximity to places of interest, you are more likely to attract more applicants and be able to pick the ideal tenant.

After finding an investment property, finding good tenants who will treat your property as if it is their own is about marketing and due diligence. Ensure that your property is well presented and desirable then market the property accordingly. Once prospective tenants begin expressing interest in your property, you should undertake background checks and screening. A normal tenancy application requires tenants to provide three references including a reference from an employer, a property manager and a personal referee. Contact past employers about the prospective tenant’s reliability at work, their employment history and financial status.

As a future landlord, select tenants who:

  • pay their rent in full, and on time
  • will look after your property, and
  • will stay in your property for the foreseeable future.

Most importantly, select a tenant who will last. The longer a tenant stays in your property, the less time and money you spend replacing them. Supporting good tenants and dealing with problems promptly can encourage tenant retention. You should only implement a rent increase if the market justifies an increase, and explain to your tenant in writing why you have decided to increase their rent, ensuring the tenant is given plenty of notice.

Fundamentally, you are ensuring you have a tenant who will provide a steady stream of income in the long term. A strong cash flow is key to making a sound investment. Furthermore, accepting the wrong tenant could result in a loss position. For example, a tenant who leaves your property in a state of disrepair will leave you a damage bill and costly maintenance bills that will overthrow your cash flow.