Your rental property is an investment for your financial future which can be positively or negatively affected by numerous important factors including the type of tenants you attract, the maintenance and management of the property, achieving the right rental yield and selecting the right landlord’s insurance.
How do you ensure you get the best tenants for your property each time? Getting this right is an important aspect of any successful property investment strategy.
As a landlord you may consider tenants who will simply pay the rent on time and look after the property. Whilst this may seem easy to achieve, being familiar with legislative requirements serves as your best foundation to make it so.
Finding the right tenants with the correct processes in place can make it easier for you to achieve your investment goals. Unfortunately, there are people who may not fit the ideal description of a model tenant, so rather than risk bad tenants destroying your investment goals, some basic tips for finding the right tenants for your rental property should be considered.
Having a Property Management Team, dedicated and skilled to work on your behalf is the crucial element in your overall investment strategy. Effective screening of past rental history, ongoing affordability and discerning information from references is a key element, as is access to listed defaulters databases. Previous landlords and rental agencies can provide impressive references, so an experienced Property Manager can ask the right questions for you.
Once an application is approved, the legislative requirements surrounding securing the tenancy, making sure all aspects are in place, is paramount to avoiding potential issues through-out the tenancy.
If there are two similar properties in the same suburb and both are charging the same rent, but your property is poorly maintained compared to the other, good tenants tend to aim at your competitor’s home first.
Keeping you property well maintained, with fixtures, fittings and services in good working order when they move in, as well as presenting a good and clean house goes a long way in attracting the right tenant. Tenants who will take care of your property want to get the impression that you care for it too. They get a sense of optimism that any issues will likely be repaired as promptly as possible.
You’ll be able to stand out ahead of the competition, which helps to reduce your vacancy rates, and tenants tend to stay in the property longer, reducing your fees.
Always know your market. Familiarity with rental prices with similar properties in the same suburb is important. Charging too little reduces your profitability, conversely charging too much can make your tenants feel as though they’re being ripped off, which increases the chances of them moving elsewhere, thus increasing your fees.
Your Property Manager can provide you with current comparative market data to ensure your tenants are paying a rental amount that is in line with other tenants in the area. Using this same market data, your Property Manager can also suggest rent increases when applicable.
Always remember, your rental property is an investment for your financial future. Whilst finding the right tenants, and ensuring all systems and processes are in place will facilitate achieving your investment goals, accidents can happen and life circumstances change. Even the best tenants can fall on hard times. A good Landlord’s insurance policy will protect you from both accidental damage and unforeseen financial circumstances.
Exploring the differing options and asking the relevant questions of insurance companies may be painstaking, but you’ll be glad you did.