Buying an investment property to provide a steady income stream is a savvy move. Once you have found the perfect rental property, the next step is to find your perfect tenant. This is where it gets complicated.
Finding The Right Tenants Can Be Daunting
Choosing a great tenant is crucial to the financial success of your investment property. You want to identify candidates who will pay their rent on time and take care of your property.
You have two options. Firstly, do the heavy lifting yourself. Alternatively, go through a professional property manager.
Ask yourself if you have the free time and resources to market your property effectively? Can you juggle property inspections as well as screening prospective tenants? Similarly, do you want to be on call to manage your tenant’s requests for repairs and maintenance and see to the contract negotiations and filing process?
The Case For A Professional Property Manager
If working through these tasks causes you to break out in a cold sweat, then perhaps outsourcing the property management to an agent may be the right call for you.
However, if you are at a stage in your life where you can devote the time to manage your property’s listing then doing it yourself can be both rewarding and potentially cheaper.
The majority of investment property owners opt for engaging a property manager or real estate agent. They oversee the complete property leasing process and usually enjoy access to data about prospective tenants you do not.
Your property manager also acts as a buffer between you and your tenant. This degree of separation ensures your time is freed to focus on your investment property strategy.
3 Steps To Attracting The Right Tenant
1. Prepare Your Property
Knowing what type of tenant you are targeting, be it singles, couples or families is the first step to leasing success. It helps your agent to market your property using keywords designed will attract your target audience and streamline the screening process.
Next, ensure you prepare your property looks its best. Clean your property, make repairs and swap out tired appliances. This helps attract the type of tenant you are targeting.
2. Screen Applicants
Working with a property manager, to help them with their initial screening. This will save time and effort. Ask your property manager to provide you with a shortlist of screened applications that meet your criteria.
3. Ask For References
Reference checks are the surest way to establish a true picture of your prospective tenant. Always ask for references from previous property managers and or landlords, employers and personal. Establish if:
- The applicant paid their rent on time?
- They get their bond back
- Confirm the duration of their previous lease
- Did they have pets?
- Confirm their role with their current employer
- How long they have been employed there
Never just go with your gut feeling when screening prospective tenants. Always base your decision on the facts and supporting evidence produced by your screening criteria.
By following this process and looking after your tenants you will be well-positioned to enjoy a great landlord experience. Finally, make regular property inspections to avoid nasty surprises and ensure you stay on top of your property’s condition and competitiveness in the market.