You have spent the time lining up your perfect investment, the next step is finding the right tenant for your property. So, where do you start and what do you look for?
We know this can be a tricky path to venture down, but at Northside Realty it’s our aim to ensure our investors are allocated the best tenants for their investment properties.
The search and selection process we undertake involves background checks and open homes, and is vital to:
- Maintain the value of the investment property.
- Ensure the tenant will take care of the property and keep maintenance costs low.
- Have rent paid on time and stay for the agreed lease period.
To learn more about how we select tenants, and the questions we ask, keep reading our blog. Or if you need any further advice, please reach out to our team on (07) 3264 4033.
Who Is Considered An Ideal Tenant?
It’s not always easy finding the perfect person or family to rent out your property, but a good tenant:
- Pays rent on time (and can afford it).
- Will stay for the duration of the lease period and beyond.
- Looks after the property (minimise maintenance costs).
- Is essential in maintaining a value of the investment property.
How Property Managers Choose Tenants
When it comes to selecting a tenant that is the right fit for the home, a property manager’s job is not that simple.
1. Open Homes
Tenants should view the property they intend to rent or at least have someone else view the property on their behalf.
First impressions count and an experienced property manager will take a note of the prospective tenants coming through. They may note small things like how they interact or how they manage their children. For example, are they disrespectful of the place and how the parents react.
Also do the prospective tenants ask a lot of questions? Are they trying to raise any objections about the listing? For example, the listing has pets allowed but only outside – are they trying to see if they can have their pet inside? Do they smell of cigarettes but on their application they are stating they’re non-smokers?
2. Background Checks
Simply applying is not enough. The property manager must conduct a thorough background check on each tenant.
An Experienced Property Manager Will Also Question the Following:
- Does the information in the application add up?
- Can they afford the place they are applying for?
- Why are they moving?
- Do they have a solid rental history?
- Have they been blacklisted?
- What are my instincts (gut feeling) about this prospective tenant?
How Northside Realty Picks the Best Tenants for our Investors
1. Tenant Database Checks
We conduct a TICA check on tenant suitability. TICA is Australia’s largest tenancy database and provides rental history information about prospective tenants.
2. Rental Reference Checks
We request rental checks from the previous property manager. We have a comprehensive checklist, and want to know:
- If they were ever behind with rent payments.
- Did they look after the property?
- Was their bond refunded in full?
- Were there any disputes?
- The impressions the applicant(s) left on the property manager.
3. ID Verification and proof of income
All prospective tenants must provide ID verification and proof of income.
We also contact their employee to check information and how they are as an employee. If we can’t verify the income, we can’t select them as potential tenants.
We make sure the prospective tenant can afford to pay the rent for the property they’ve applied for, by calculating the living expenses versus their income.
4. Social media screening
It can be surprising what can be revealed about prospective tenants on social media.
Are they partying a lot? Are they claiming they are single, but clearly in a relationship? Is the application showing they don’t have pets but own one?
If we can’t be sure that the applicant is who they say they are, there is a high risk of issues surfacing down the track.
5. In-person viewing
We have all prospective tenants (or someone on their behalf) come and view the property at an open home.
- This ensures prospective tenants have all the information about the property that they need, to see if the property is a good match for them.
- This also creates an opportunity for us to meet the prospective tenants in person and find out their background and circumstances.
Finding the right tenant for your property
Looking to buy, sell or rent property? With a professionally driven team and proven track record, Northside Realty are determined to get you the highest price. Contact Northside Realty today.