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How you attract and keep good tenants

Buy where people want to live.  Focus on areas that provide good amenities and facilities such as employment prospects, transport, entertainment, education, retail, a vibrant community or public open spaces.

You will also achieve a higher rental price for a well-maintained property.

Families are more likely to stay in a rental property long term.  The effort required to move is a lot more daunting for a family compared with a young professional couple in an apartment.  Also once children are settled into schools, parents are less likely to move them.

Ensuring your property remains tenanted is critical to the long term success of your property investment. When your property sits vacant, it’s lost revenue and making mortgage repayments when no income is coming in may become a struggle.

This unfavourable scenario is easily avoided by purchasing a good quality investment property in a well-established area that provides tenants with what they need.

Here are a few handy hints you may want to consider to help you to attract and keep good tenants.

  1. Buy where people want to live

There’s no point buying a gorgeous property if the nearest shops, schools, public transport and petrol stations are two hours away. It doesn’t matter how attractive a property is because if it can’t meet the lifestyle requirements of the tenants it is highly likely the property will remain vacant. 

Instead, focus on areas that provide good amenities and facilities such as employment prospects, transport, entertainment, education, retail, a vibrant community or public open spaces. Although it is not critical, properties with attractive surrounds or views are often in high in demand if the rent is not unreasonable.

  1. Buy and maintain a good quality house

The better the home, the better tenant it will attract. A well presented house is likely to attract a tenant who takes greater pride in their surroundings and it is more likely the home and gardens will be maintained to a higher standard.  Simple things like new stainless steel appliances, fresh paint, clean floor coverings or manicured gardens will go a long way towards attracting better quality tenants who will take good care of your investment property and treat it like their own. You will also achieve a higher rental price for a well-maintained property.

  1. Buy for families

Families are more likely to stay in a rental property long term. The effort required to move is a lot more daunting for a family compared with a young professional couple in an apartment. Also once children are settled into schools, parents are less likely to move them.

Families often have a better track record of home maintenance and pride than a group of bachelors so don’t be afraid to rent your home to a family. Once they are settled in you have a guaranteed income for a set timeframe so you can sit back, relax and let your investment work for you.

  1. Be rent realistic

Be sensible and realistic with the rent. This is relative to the configuration and condition of the property, its location, and the current state of the market.

If your property has been inspected by various prospective tenants but received no applications, you may need to revisit the asking rent. Rent in certain areas can be very price sensitive so an amount as little as $10 per week can be the difference between attracting a quality tenant, and having your property sitting vacant.

  1. Look after good tenants

Good tenants are a real asset so when you find them, be sure to look after them.

If they pay their rent on time, keep the house neat and tidy and don’t disrupt the neighbours you might like to acknowledge their efforts with a small token of appreciation such as a Christmas present or you may choose to maintain their rent at current levels rather than trying to get maximum dollar at every opportunity. This small gesture will be appreciated and remember, they are paying off your investment for you!

  1. Choose a reputable property manager

If you’ve chosen to have the property managed, do your homework before selecting one for your property. They will be representing you and your investment and it is important that they have your best interests at heart, as well as the ability to be firm but fair with your tenants. Be sure to shop around, ask friends and family for recommendations and have a good understanding of the fees and charges before you sign on the dotted line!

 

DISCLAIMER:This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstances.