How to Find Tenants for Your Rental Property
How to Find Tenants for Your Rental Property
Tenancy, unfortunately, is not just about rent. You could rent out your property to just anybody but if it's in a quiet neighbourhood and your new tenant is a late-night heavy metal guitarist, it might not be the best choice (for you or your increasingly frustrated neighbours).
Choosing the right tenant is more complex than it seems. You have to choose someone who will be punctual with rent, fit in with the neighbourhood, and won’t cause you any trouble. That’s why you need to pick good tenants that will make your job much easier. It’s not impossible to find great tenants, however. You just have to make sure you’re asking the right questions and getting enough information. It may take some extra time but it’s definitely worth it.
Dealing with different kinds of people means you have to be discerning with each one and how they all operate.
Screening them in terms of how they interact with you, their employment, and if they’re consistently paying rent is a big deal in order to find the right people for your rental home.
Preparing your rental house for tenancy.
Before you can find good tenants, you have to make sure the property is spick and span and ready for occupancy. It’s no good vetting tenants if people aren’t even interested in the house. By ensuring the house is appealing, you can advertise it for a competitive price that will attract potential tenants.
Prepare your home for sale by repairing any leaky or broken fixtures that are outdated and take good, professional photos to capture the charm of your rental home. After you’ve spruced up the place, take a good look at the market and compare prices. Find the average price in the area for similar properties and you can get a rough estimate without compromising the property’s worth.
Finding good tenants for your rental house
Now that you’ve gotten the place on par with other properties, you need to find the people you’ll be handing the keys over to. But you can’t just give the property to anyone. Property rental is more than just moving people into a space. You need to discern between a good tenant and a bad one.
A good tenant will pay rent on time and, if they’re going to be late, will communicate with you. As long as they’re communicative, it shouldn’t be a problem in the long run. However, someone who is consistently late without any warning can be a red flag. If you have to chase them down for their monthly rent every time, they aren’t a very good tenant. Remember that reasons after the fact become excuses. And you don’t want to listen to excuses all day.
Someone who informs you about needing repairs right away is also positive. They’re a good tenant if they let you know if something is damaged as soon as they see it. When it’s the opposite—that is, if they fail to tell you—they’ll only cause you more trouble.
You may also have an “ideal tenant” in mind. Maybe you prefer young families because they might stay on longer. Whatever it is, remember that no discrimination is allowed in terms of choosing a tenant (it’s illegal!). Another important note: You cannot refuse a tenant for having a pet.
And while you may have an ideal in mind, remember the non-negotiables: Good credit score, paying on time, communicative, and attending to the property as if it were their own.
5 questions to ask a tenant before signing
Before signing a tenant, you should ask them these five vital questions in order to see if they’re a good fit for your rental property.
Have they been punctual with rent previously?
Mortgage payments don’t go away so you need to collect rent on time from your tenants. Rent also goes into other funds like repairs for the property, if needed.
By making rent hassle-free and with clear instructions, a tenant is more likely to be on time with their rent. The more convenient the better. Don’t complicate the payment process by making them have to take unnecessary steps.
Incentivising early payments can also help. For example, if they continually pay early, you might offer the next basic repair free of charge. Execute something similar for the opposite scenario. If they’re late, consider a late fee.
In Australia, landlords can do rental checks for potential tenants. A blacklist exists for people who have been bad tenants and the information is more or less accessible via the internet. People generally want to avoid that blacklist, so encouraging on-time payments can be a way to avoid that.