How to attract quality tenants to your investment property
Investing in a property is a great opportunity to build your wealth. But if your rental property becomes vacant even for a short period of time, this can have a huge effect on your income.
So how can you make sure that your property attracts good quality tenants all the time, despite the competition with other rental properties? We have laid out simple but smart ways you can find quality tenants so your property won’t remain vacant for long.
Know what you want in a tenant
Do you have an idea what kind of tenant you’re looking for? Is it okay if the tenant smokes or has a number of pets? Having a criteria in mind can help you when it comes to making an ad listing for your property. It helps to have your own definition of a ‘quality tenant’ for your investment property.
Emphasize the best features
More likely than not, you will have competition against other properties. To stand out from the crowd, make sure to emphasize and describe the unique features of your property. An outstanding ad can capture the attention of many potential tenants.
For example, you can include in the description the relevant features you have such as the location, amenities, and the number of rooms and bathrooms. Don’t forget to add adjectives for a more compelling description.
Take good quality photos
Photos are usually the things that people see first. To make your photos look nice remove unnecessary items, make sure that the unit is clean. Photos should be clear and steady. You can also take advantage of 360 degree photos for a more immersive experience, or even offer a video tour of your rental property. Consider hiring a professional to take photos for a better result.
Maintain the property well
Obviously, a well-maintained property will always attract good tenants. You should make an effort to make your property look as presentable as possible to prospective tenants.
Performing regular maintenance will ensure that your property is well-kept all the time. If something breaks, a quick response to repair it will ensure you that a quality tenant will stay longer.
Hire a good property manager
Let a professional do the job for you. They can market and advertise the property on different platforms, find the quality tenant you are looking for, handle the maintenance and repairs, collect the rent for you, and provide other services.
Check their credit scores
A credit check will tell you a tenant's financial position and also whether they have a track record of paying their bills on time. Ask if they are willing to go through a credit check or provide bank statements for your scrutiny. Keep in mind that if the applicant refuses to do so, it does not necessarily mean they cannot afford to pay their rent.
Contact their previous landlord
One of the ways you can screen a tenant is by contacting their previous landlord. It is a good idea to speak with at least two of the tenant’s previous landlords. You can ask questions such as:
- Did the applicant pay their rent on time?
- How long did the applicant live at the property?
- Why did the applicant transfer?
- Did the applicant caused any major damage to the apartment?
- Were they a respectful neighbour?
- Were they easy to communicate with?
Find out their rental history
Reading through their rental history can tell you a lot about their traits as a tenant. Have they rented five different properties in the last two years? This can mean that there is a problem with their behaviour as a tenant and they may continue this when they rent your property.
Review their salary
Ideally, your tenant’s salary should be at least three times the monthly rent. To find out their salary ask for copies of their pay slips or contact their employer directly. You can ask the employer questions such as:
- Is the applicant a permanent or a temporary employee?
- How long have they been an employee?
- What is their monthly pay?
- Do they have positive employment prospects in the company?
- Is the applicant a responsible and punctual employee?
If they are self-employed, you can request documents to verify their business ownership, and assess their cash flow for the past two years.
Don’t rush into choosing a tenant
There’s no need to accept the first application you receive. You can assess a range of prospective tenants so you have a wider choice and get a better outcome. Make sure to inform every applicant that there are other candidates.
Once you have found your quality tenant, make sure to keep them happy so they stay longer in your investment property. A happy tenant will ensure a good rental yield.