How to find the best tenant for your rental property
Updated: May 19, 2022
Our greatest tips for finding the perfect tenant for your rental property when maximising your real estate investment strategy
Finding the perfect tenant for your rental property can be a challenging task for property investors. It’s even more challenging to navigate if you’re managing your own property investment.
There are numerous factors that should be considered when identifying the most suitable resident to occupy your property. Whether you’re interested in learning about what property managers look for when choosing a resident for you, or you’re planning to choose a tenant by managing your own investment property – we’ve listed the major considerations below.
Hiring a property manager
According to the Real Estate Institute of Australia (REIA), 80% of Australian rental properties are managed by property managers. There’s a good reason for it too! Managers remove the time and hassle of the day-to-day management (including sourcing occupants) of your real estate investment strategy.
Real estate agents can find prospective occupants much easier, because:
They’re well-informed of the legalities and rights of landlords and tenants. This minimises the risk of legal ramifications
Agents have tried and trusted screening procedures
They’re able to professionally market your investment property to source the most suitable occupant
What you can do
If you’re a landlord there are some things that you can do to make the most from your property investment strategy. From the get-go, the goal is to find the perfect tenant. Thus, it’s important to attract them by making your property as desirable as it can be.
Here’s a few things that you can do:
Purchase or make your investment property attractive to prospective occupants
Good residents will pay more to live in an attractive home. You should consider every aspect of your property from the perspective of a resident. A good real estate investment should be situated in a good location, be safe, and be in a good neighbourhood.
Buy an investment with added features
When your property comes with added features you can maximise the return you receive. Good tenants pay premium rent; therefore, they’ll expect desirable features in return. Such features include quality kitchens and appliances, air conditioning, pet-friendly areas, good connection, and more.
At REIF, we provide our investor clients with new full turnkey property options for this reason. These properties come with such features and allow our clients to make the most cash-flow from their investments.
There are numerous factors to consider when screening prospects for your rental property. These include:
Doing a reference check. Most prospects provide three references. Following up with as many references as you’re provided with is important for collating us much information as possible to make the most logical and informed decision on whether you’d like to accept their application
Reviewing their rental history and finding out if they’re reliable and able to pay their rent on time. With this, you can also find out whether they’re tidy and able to maintain your property in accordance with their obligations
They have a good credit history
They have a reliable and steady income. This will be an indicator of whether you can trust them to pay their rent on time
Their criminal record
Other considerations for your real estate investment strategy and finding the perfect tenant
Here are some other factors that you may wish to consider that can improve your chances of selecting the most suitable occupant for your rental property.
Advertise your property to the most appropriate occupant. This includes taking professional photos, or virtual video tours, marketing through online rental sites within your location, etc.
Set your expectations up-front with prospects. This will eliminate time wastage for both parties.
Maintain respect for your tenants and ensure you meet your landlord obligations to uphold relationships.
Be prompt with responding to enquiries and questions of occupants.
For more information
While we’re not property managers, we work with an expert team of excellent property managers. If you’re seeking the qualified assistance of such professionals, be sure to reach out for us to get you in contact with them.
Additionally, if you’re searching for the perfect investment opportunity we can help! Our contact details and eBook download link are listed below.
Ph: 1300 130 932