Finding the right tenant for your investment property

It’s said that the tenant you choose for your investment property is just as important as the property you purchase.

Why? Well, a good tenant will theoretically provide an ongoing income stream for the potential long-term, look after your property and live in the property for the foreseeable future. So, if you don’t have a good tenant, you could be risking your current and future income stream.
As a landlord, you really want a tenant that will last. The longer they stay in your property, the longer you go without losing money and time replacing them. This means that you’ll need to treat your tenant well and deal promptly with issues that arise. And, you’ll need to carefully consider whether to increase the rent, only doing so when the market justifies it.
The search to find the ‘right’ tenant for most people is an exercise in placing listings and screening potential tenants and could almost be considered ‘rental dating’.

How do you attract a good tenant to your investment property?

Attracting tenants that will treat your property as if it were their own is the goal. To capture these tenants, make sure that you property is clean, well presented and desirable. Ensure your property looks as good as if you were selling it.
Then, if you’re tackling this on your own, you’ll need to:

• Create a web listing for your property. Be creative, but realistic when describing the features of the property.
• Use quality photographs to capture the features of inside and outside the property.
• Advertise your property with a reputable web site.

Once prospective tenants express an interest in your property, take the time to perform background checks and screening. A tenant application should have three references from an employer, a property manager and a personal referee. It’s also wise to ask a former employer about a tenant’s reliability at work, their financial status and employment history.


Warning signs that you should steer clear of a particular prospective tenant:

• A prospective tenant that finds faults and minor defects during an inspection, despite your property being in good condition, will result in you arranging repairs and spending unnecessary money to ensure that they are happy throughout their tenancy.
• Rent should always be paid in full and on time. If a prospective client is late with rent or still owing money to their previous landlord, they are likely to do the same to you and be a financial liability.
• If a prospective tenant doesn’t provide the supporting documents that you request, then it’s safer to simply select another tenant.

If you think that you’ll need some assistance in finding the right tenant for your investment property, you could also consider leasing your investment property to an organisation like Defence Housing Australia (DHA), which leases out investment properties to defence personnel. Such an organisation pays your rent monthly in advance into your bank account, even if your property isn’t occupied and generally offers long term leases, of up to six years. It is also arranges an annual rent review and non-structural repairs and maintenance work to your property during the tenancy, at a cost.
Alternatively, you could enlist the help of a good property manager. They can be invaluable when screening tenants and deciding upon the appropriate level of rent to charge. Be sure to ask them how many rental properties they have on their books, their total all-inclusive fees, the number of properties they have in arrears and their strategies for when tenants refuse to pay rent.
By either employing the services of a property manager or an organisation like DHA, your responsibilities are significantly reduced when compared to conventional residential property investments.


One last important thing to consider when securing the right tenant for your property is to consider purchasing landlord insurance. This type of insurance may give you peace of mind that your property is safeguarded against rent default, associated legal costs and the potential loss of rent if the property is uninhabitable due to damage. So, your rental income may be protected, even if something unexpected happens.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE