5 ways to find and keep quality tenants in your investment property
Finding reliable tenants can feel a bit like you’re a judge on The Voice. You’ve had countless applications, and whittled it down to a top 12, 8 and 4 – but how do you know when you’ve found a star tenant?
As an investor, you probably spent a fair bit of time researching the market to find the ideal rental property. That makes sense; choosing the right property is a critical step that will help to underpin healthy long-term returns.
It’s also equally important to develop plans that’ll help you attract and retain quality tenants. Not only will they be your source of rental income, securing a good tenant can reduce vacancy rates and re-letting costs, and help keep maintenance and repair bills to a minimum.
Five ways to attract and keep quality tenants
Think carefully before DIY property management
Keep the property in good condition
Know what tenants want
Have conversations…and insurance
Regularly check in on the property
1. Think carefully before going do-it-yourself on property management
Landlords may choose between self-managing a rental property, hiring a property manager to handle some aspects, such as organising a new letting, or handing over virtually every aspect of management to a professional. While greater involvement of professionals may mean you will pay more in ongoing management fees, taking a do-it-yourself approach can be a case of false economy.
A good property manager will know what sort of rent your property may command in order to earn market returns. New tenants will be thoroughly screened and references checked to help you attract reliable tenants with a good track record. An established property manager will also have a list of reputable tradespeople who can be called on to make emergency repairs. Good tenants expect your property is well maintained, and you will want to keep them happy.
2. Keep the property in tip-top condition
Keeping your rental property in great shape isn’t just critical to attracting and retaining good tenants, it also allows you to maximise the property’s gross rent return while helping to underpin long-term capital growth. Having a regular maintenance plan in place will prevent minor repairs blowing out into major expenses.
Just as important is promptly acting on any maintenance issues raised by the tenant. Industry research shows that in some states, up to 47% of tenants have found landlords respond to repair and maintenance requests only “sometimes”. Neglecting maintenance matters can result in higher tenant turnover.
3. Know what tenants want - and give it to them
In a competitive rental market, it pays to think about what tenants really want from a property – and this can vary according to where your rental property is located. In an inner-city suburb, tenants will often pay a bit more in rent for off-street parking. In a large suburban family home, secure fencing may be a priority.
Bear in mind that what matters to the tenant should also matter to you. If you are considering ways to add value to the place, adding a carport to a house without a garage can improve the tenant appeal, which means better rental returns.
4. Have conversations…but have insurance too
Ensure your property manager or tenant is aware of your tolerance limits on issues like pets, adjustments to the interior décor or garden changes. Having open conversations about these touchpoints at the start of a lease can prevent hassles further down the track.
Even with the most thorough checks, you could still end up with a troublesome tenant. Having landlord insurance in place provides peace of mind that you are covered against loss of rent or malicious damage to the property depending on the nature of your cover
5. Regularly check the property yourself
Let’s face it; no one cares more about your rental property than you. Make the effort to view the property in person at least once every six months – annually at a minimum. That way, if you see something you’re not happy about, the problem can be nipped in the bud.
In fact, just knowing the owner of a property will check out the place in person every few months can be enough to motivate tenants to take extra care of your investment. Just make sure you’re following the terms of the tenancy agreement regarding allowed inspection frequency and tenant notification timings.
Finding great tenants that treat your property with love and respect is easily achievable with the right steps. By ensuring that your investment is in good nick, repairs are promptly carried out and engaging with a real estate manager, you can find the perfect tenants to make your investment dreams come true
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