property can be an attractive financial proposition, but finding the perfect
tenant is a crucial part.
A good tenant will
be profitable forthe landlord, whereas a bad tenant can be costly for
RealRenta has established policies and
procedures to help you ensure that prospective tenants are screened thoroughly
and effectively and that bad tenants are avoided at all costs.
Here are some
Verify their income
The perfect tenant
will be financially responsible and will have sufficient means to pay their
rental obligations in full and on time. A higher income does not necessarily
equate to a greater ability to pay rent, as the tenant may have borrowings and
debts that require monthly repayments, so it is essential to do an in-depth
assessment of their income and financial obligations.
Check their rental history
It’s vital to check
rental history with at least two previous landlords or property managers to
assess a tenant’s suitability. Some of the questions that should be asked
the rent paid on time?
long did they rent the property for?
did they move?
did they treat the property and was there any damage other than regular
wear and tear?
they have a good relationship with their neighbours?
there any lease violations?
A perfect tenant
will have an impeccable rental history thatdemonstrates that they paid
their rent on time and in full, and that they treated the property with respect
Do a credit check
RealRenta can run a credit check
through the National Tenancy Database and sent you a report on the tenant.
Clearly, a perfect tenant will have a blemish-free credit record.
One of the biggest
mistakes that ownerscan make is inadequate screening of prospective
tenants. It can be time-consuming to personally contact references, but this is
a vital step in the screening process because it provides an opportunity to get
answers to important questions. For example, you can get an idea of a person’s
history and the status of their current position from an employer –all of
which is crucial information in terms of finding the perfect long-term tenant. RealRenta can also do this for you (for
Establish motivation for renting the
applicants the right questions, it is possible to ascertain whether they are
likely to stay in the property for the long term, which is Gold for property
investors. Find out what links they have to the area and what the reasons are
behind their choice of suburb. Someone with family living in the area, or whose
workplace is within easy reach, or who has children who attend a neighbourhood
school or nearby university ismore likely to be a stable, long-term
One of the keys to
finding the perfect tenant is making sure that every application is thoroughly
reviewed and that there is no room for ambiguity or misunderstanding. In short,
the perfect tenant is one who:
rent on time and in full;
in the property for a long lease; and
the property with respect and care.
your online property manager – It’s just a better way to manage your rental
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Thursday, 28 July 2016