CHOOSING THE RIGHT TENANT
Property investment, as we know, can provide many rich rewards as you pursue your dream of financial freedom, but if you don’t pick the right tenant for your property, that dream can turn into a nightmare.
It could be that when a less than stellar tenant comes to the end of their lease, you may find yourself saddled with a huge bill for repairs or a list of complaints about that person’s tenancy.
This is why engaging the services of a property manager is such a vital step if you wish to remove this stress from your life. It’s an additional cost, for sure, but property managers are experts in the game, and their help and advice will ensure that you choose a high quality tenant who will want to be their for the long haul. Here are some things a property manager will assist you with:
Making sure your property is well presented
Completing all maintenance and repairs before your property is listed and open for inspection will help you attract people who will take the same diligent care of it as you would.
If this means waiting a week or two for a current (messy) tenant to move out, so be it. Also, remember high-quality tenants will better visualise themselves living in the home if it’s well presented.
Observing attendees at the inspection
When you do a Home Open, a good property manager will take careful note of those people in attendance and particularly those who may not be making truthful statements in their application. For example, if an application states that the person making it is a non-smoker but your property manager can smell cigarette smoke, it’s important to know who that is.
A good property manager will have been in a situation like this before, which means they’ll be able to give you their recommendations based on meeting and talking with prospective tenants and assessing their applications.
Reading between the lines
If an applicant has lived in a number of properties over, say, the past couple of years, this may raise some alarm bells, although they may have a genuine explanation, such as moving around for work. Your property manager will pick up on things like this and ensure the applicant is telling the truth and any red flags are addressed.
Going with your gut
If you and your property manager aren’t getting a good feeling about an applicant, it might be time to move on and keep looking for someone better. This could mean no rental income coming in while a property is vacant, but this will be better than rushing and ending up with someone who might cause problems.
* This article does not constitute financial or legal advice. Please consult a professional financial and legal adviser before making a decision.