Finding good tenants is a crucial aspect of owning an investment property. Read on to find out the benefits of having good tenants and how you can find them for your investment property.
The benefits of having good tenants
The major benefits of having good tenants are:
- receiving your rental income on time.
- your property being better looked after.
On the flip side, bad tenants:
- pay rent late (or not at all)
- don’t look after your property.
- can be difficult and expensive to evict.
Ways to find good tenants
There are two main ways to find rental property tenants in Australia:
1) using a property management service.
Let’s look at both methods in turn.
Property management services
Property managers find tenants for landlords as part of their services. When evaluating potential property managers for your investment property, always look at their level of experience and reviews before you enter into any agreement. You should also ask the following questions:
- how, where and when do you advertise for tenants?
Good property managers cast the net far and wide to find the maximum number of potential tenants for you to choose from. They also attempt to renew the leases of good tenants as early as possible.
- how do you vet tenant applications?
Good property managers do thorough reference and background checks on potential tenants.
- how many properties do you manage?
The lower the number, the more service you are likely to receive.
- what is your process for minimising or avoiding rent arrears?
Good property managers are proactive in chasing rent payments.
- what is your rent review process?
Good property managers regularly review market rent rates to ensure that their landlords are getting the best possible return on investment.
Make sure that you ask potential tenants to include the following information in their application:
- rental history.
- why they left their last property.
- whether they have pets.
- when they want to move in.
- how long they want to lease your property for.
- how many people will be living with them in your property (if any).
- what they do for a living.
- names and contact details of referees for their application (ideally their employer and current/previous landlord).
Once you receive all your tenant applications, create a shortlist of people to interview. Ideally you should do this in person, but if that’s not possible, speak to them over the phone.
Once you have selected your ideal tenant, you should also:
- contact their referees for confirmation of the information they have provided and to verify their good character.
- check a reputable tenancy database to see if the potential tenant has had any issues with previous rental properties.
- Google the tenant’s name to identify any potential areas of concern.
How we can help
If you’re looking to buy an investment property and you need finance, our expert brokers at Wisebuy Investment Group can help. We can also help you with your loan application.
We service a diverse range of clients in the popular Newcastle, Lake Macquarie and Maitland areas. Our licensed and experienced mortgage brokers work with more than 60 lenders in the Australian market.
Contact us today for an obligation-free chat to find out more. We’d be happy to provide you with advice and answer any questions you have.