Author Archives: RedRan

How to Attract High-Quality Tenants for your Property

Choosing the most attractive property

Some things can be added to any home – appliances, new paint or flooring – but there are many desirable factors that can’t be changed.

This is why it’s important when you are looking at buying an investment property to consider every aspect of potential properties from a tenant’s perspective.

The first and most obvious consideration is location. Being close to transport and retail centres, schools, parks and universities will increase your rental value, as will a nice view.

Another factor to consider is the neighbourhood itself. Is it safe, do people want to live here, are there any rowdy neighbours in the area? Sell my house in Henderson

It’s a good idea to talk to your agent and do your own Google searches to understand what the neighbourhood is like before you buy.

A major concern for many tenants, especially in the cities is parking – nowadays tenants expect double car accommodation. At the very minimum, make sure you look for a place that has off street parking for at least one car.

Added features

It is important to have the right features as part of your property can potentially make or break a deal. In many cases extra features enable you to charge a higher rent and have the added bonus of reducing the amount of time your property is left vacant.

Every week a property sits vacant (and this can occur even in periods of low vacancy rates) is almost 2% of your yearly income that you won’t get back. For this reason alone, reducing vacancies is crucial for every investor.

It is important to make sure your property is at the top of its game. In a market where there might be 50 or 60 other similar properties available, it is not just about getting top dollar, but also about leasing your property faster than others.

You should always try to present your property well, price it to meet the market, and employ the services of a property manager who can oversee the whole operation.

Have professional photography

No listing is really complete without great pictures. If the property has spacious bedrooms, stunning features and inspired decor, why shouldn’t it be shown off?

Don’t leave the interior of the property up to a tenant’s imagination. Pictures can create visual interest, allowing potential renters to truly picture themselves living their lives in the space. Photographs can really bring a property to life and drive people through the doors come inspection time.

Create a memorable property listing

Writing a compelling listing is one of the first things landlords can do to attract tenants to a property. Listings that include a strong hook in the headline, descriptive yet concise information and make it easy for potential tenants to get in contact are ideal.

Taking the time to write a memorable listing helps attract a larger pool of quality tenants eager to see the property for themselves.

What to Avoid

Just as there are some things tenants will be willing to pay more for, there are also features that will detract from the value of your property.

A ‘dark’ property will always put tenants off, as will one that’s dirty or in poor condition. A dark property refers to one with limited windows and therefore minimal opportunities for natural light.

Remember you will not be the one living in the property, so even if you like dark or brightly coloured rooms, for others they may be a big turn-off. Try and stay as natural as possible to appeal to the biggest market.

What can I change?

Some quick changes such as a fresh coat of paint, some new fittings such as door handles, new kitchen benchtop, and modern light switches can go a long way in having your property appeal to good tenants.

But if you want to make bigger changes, be careful not to over capitalise on your property. When considering making larger changes, it is important to talk to your property manager as they can advise you on where you could best add value and the expected rental return after these improvements.

Renting your Property

Finding the right tenants to sign on the dotted line can sometimes be a long and drawn out process. However, taking small steps to ensure that your investment property is up to scratch in terms of features and attractiveness, along with securing the help of the right agency, can go a long way towards getting the right tenants for your property.

The 7 Key Steps to Effectively Screening Potential Tenants

Pre-screen potential tenants

The screening process can start before tenants have even filled out an application. By asking a few simple questions, such as inquiring about pets or mentioning that you will be running background checks, you can reap significant rewards. Gauging responses can turn up red flags, or make you want to pursue these tenants. Either way it is a great first step to weed out the wrong type of tenants without wasting much time.

Along with asking a few pointed questions before taking an application, in the modern age it is also wise to have a look at potential applicant’s social media footprint. If their accounts are public, landlords can ascertain a good picture as to what their private life is like, and therefore how they would treat a home.

Proof of income and ID

The rental application is essentially a series of questions to help you profile the prospective tenants. The answers that applicants record can be very insightful and valuable. In the application process, most landlords will want potential tenants to have employment as a way to guarantee that they can cover the monthly rent.

Moreover, being able to pay the rent on a consistent basis is a major consideration when screening a potential tenant. Illustrating the ability for maintaining a property and ensuring the place remains in shape is also extremely important when a tenant is being screened. As such, having the tenant provide quality and relevant proof that can support these criteria should go a long way in meeting these requirements.

However, some applicants may put down employment information that is either completely falsified or not current. Therefore the answers to the application questions are only valuable if they can be verified.

As such, it is important your property manager ensures that applicants have given 100 points of ID and proof of income, preferably in the form of their three most recent pay slips and or a bank statement highlighting their income. That way landlords can see that applicants have not only been honest, but can actually afford to live in the property.

Assess their character at the inspection

In most cases your property manager will be responsible for showing prospective tenants through your property. This is a good way for them to interview potential tenants away from the formal format of an interview. As such they can get a better handle on what the tenants are really like.

With just a quick informal chat, your property manager may be able to find out what kind of person they are, how their job’s going, if they move often and if they’ve ever had trouble in previous rentals.

Not only that, but their physical interaction with the house will give an idea of how they might treat a property once they move in. If you want to have extra certainty when making the final call, it might be good for you to join the tour, too.

Interview

The tenant interview is of course still a very important part of the screening process. Like any interview, choosing the right questions to cut through the waffle and get the necessary information is a vital part of the property manager’s role.

One question a property manager may ask is why they’re moving. No good tenant should have trouble answering such a simple question, while on the other hand, they may find out that they’ve been evicted from their previous rental property.

If you’re keen to suggest some questions to the property manager, having them ask about their job is a good one – whether they’re currently employed and if not, where they get their income from.

An interview can be a good place to air out any grievances while also giving the tenant the ability to respond to any questions that a landlord may have. For example, if the tenant cannot provide three recent paychecks, landlords may view this as a red flag. However, in the interview the tenant can relay that they have taken holidays in order to look after a sick relative or something along those lines. If the landlord liked this tenant but the lack of employment was an issue, giving the tenant a chance to explain could put them back in the running for the property.

Reference check This is the most basic one. Most typical tenant applications require at least three references, from personal referees, past employers, and previous landlords.

It is the role of your property manager to do a double-check that the references they’ve provided are accurate, as well as try and extract some character profiling information from them.

The first and most important reference check will be a phone call to the property manager of their last rental, and the one before that if possible. They should ask things like: what type of tenant were they, did they pay on time, did they look after the property, was the bond refunded in full, etc. Contacting the property manager of their last rental can provide valuable and accurate information as well as an insight into whether or not the applicant was a good tenant.

The reference check step should also include asking their employer to verify their income and to give an overview of their character, how reliable and responsible they are. This can give you a good idea of how dependably they’ll keep up with the rent.

National tenancy database check

If the applicant has ticked all the boxes, your property manager will most probably make the final screening check on the National Tenancy Database.

This information is not free, which is why it isn’t done earlier. This will show if the tenant has been blacklisted, give a summary of their rental history, bankruptcy information, court judgments and validates the identity of the applicant.

Finding out this information before you offer tenancy to the applicant can save a lot of heartache down the line if, in the worst possible scenario, tenants go missing without paying rent or damage gets done to your property.

It is completely up to the landlord whether or not they approve someone with a criminal conviction or bankruptcy in their past – however, these are key points about a person that is good to know before putting your property in their hands.

If the database check turns up anything that doesn’t look too favorable, you haven’t yet offered the applicants tenancy so there is still time to have a conversation before terms are agreed upon, if at all.

You have the final say

Your property manager will present you with a short list of potential tenants that they have fully screened and in many cases may recommend a particular tenant over another. However, as the owner, you have the final say on who you select to live in your property.