5 Tips for finding the right Tenants for your Property
As a landlord it is always a worry when you have to advertise your property for rent to find new tenants.
Will these tenants pay their rent? Will these tenants keep the house clean and tidy? Will these tenants damage the property?
For each property that gets advertised there is always a number of potential applicants who enquire on the property, a smaller number who view the property and an even smaller number who apply for the property.
So how do you pick the right one?
The first thing to remember as a landlord is the decision of which application gets approved is usually always yours, the property manager simply confirms all the details on the application, gets references, checks out the tenants history and assesses their presentation at the viewing of the property. Sometimes no matter how much time and effort a property manager puts into processing an application to make sure they are suitable tenants, there is still the possibility that a few high risk tenancies slip through the cracks and get approved.
Here are our top 5 tips to increase your chances of selecting good, long term tenants for your property:
- Did they inspecting the property? – Every tenant should inspect your property. This is one of the most important things potential tenants should be doing, they accept a property in its current condition. Meaning if they accept the property they are agreeing to things such as no clothesline, walls patched from previous tenants, no secure/covered parking, no flyscreens etc. When a potential tenant does not view the property they miss out on seeing the little features which may make their tenancy hard. In the long run this causes problems which can lead to stress and additional expenses for the landlord.
- Check TICA – This is Australia’s largest tenancy database. This database holds information about potential tenant’s history if they have an outstanding debt through a previous agency. You are also able to see who has searched this person before, giving you an idea of how many properties they have applied for. Every potential tenant should be checked against this database, this can eliminate high risk tenancies.
- Consider income/affordability – When assessing if a potential tenant could continuously afford the rent, you need to look at the combined income of all adults going on the lease. The rent amount that they can afford should be no more than a third of the combined income for the household. It also needs to be assessed if the income amount is regular, if their employment is secure and if they have any other large financial obligations.
- Rental history – This is by far the easiest way to tell if an applicant will be high risk or not. Previous agents get sent a rental reference request which asks questions about the rental payments, routine inspections, vacating inspection, pets, if the tenant was cooperative, would they rent to them again etc. These questions highlight all the important factors of a tenancy, indicating if a tenant will be suitable for your property.
- Social media – People’s online lives have changed the way property managers look for suitable tenants. By searching for potential tenants Facebook page or Instagram account you are able to see the side of their life they may have tried to hide. You are able to see if the tenant has pets they have not told you about, are privy to holding large parties regularly or seem to create a nuisance in their community.
The above 5 points should always be checked against every applicant that applies for your property to make sure they are suitable. At Jackson Bell Property this is standard procedure along with a few other areas we like to check for potential tenants. This always minimises the chances of having high risk tenancies, as such we have found we have minimal issues with tenants who reside in the properties we manage by taking time, care and going above and beyond when processing applications.
If you’d like to learn more about about our property management services then please Contact us!