Gaining good tenants is one of the key aspects of a successful investment. So how do you acquire “good tenants”?
Checking tenants’ references and doing the appropriate background checks are critical tasks to give you the best chance of a smooth running and successful investment.
Property Management professionals have access to specialised tenancy databases, and have the knowledge and experience to carefully look into applying tenants and thoroughly evaluate them. Property owners would be wise to choose an experienced Property Manager and agency team that focuses on gaining a quality tenant. A carefully selected tenant increases the likelihood of a steady and trouble-free investment.
Two of the most important background checks your Property Manager can do are previous rental history and employment record checks. This sounds fairly straight forward, but there are many traps for the inexperienced.
It comes down to finding out from the information gained if the applying tenants have an excellent track record from their past tenancies. That means paying their rent on time, looking a er the rental properties, and staying for a reasonable period of time. Also the current ability for the tenants to pay the rent is evaluated through information and proof from current employers.
Tenants who have a history of moving frequently are not ideal, as this will interrupt your cash flow while there is a changeover from one tenant to another. You’ll also want tenants with steady employment records and income, meaning they can comfortably pay the rent each week.
Owners who manage their property are o en not objective, and lack
the expertise and experience to look into applying tenants. One of the mistakes many property owners make is relying on personal references when investigating potential tenants. A bad personal reference rarely exists – friends and relatives won’t write or tell negative things about those close to them. Professional and background checks are absolutely essential.
Superior Property Management agencies have strict systems in place to ensure all applying tenants are closely scrutinised before accepted, and are intimately across the day-to-day management of their clients’ properties. They are focussed on:
- Happy tenants that look after the property.
- Maximum income from the investment property.
- A well-maintained property.
This is one of the many reasons why is smart to employ a professional property management service to manage your property. Their service will save you a lot of time, money and stress in managing your investment.
This service may cost you a little more in the short-term, but this “forward-thinking” will potentially save you thousands. Plus your property management fees are tax deductible.
For more information about our property management service, call 4628 7444 and speak to our management team.
