The Guide to Screening a Tenant
Securing the best investment property is the first step in your investment success; the next key factor in a successful investment property is finding the right tenant. The right tenant can ensure regular rental income and a hassle-free process overall. However, the wrong tenant can lead to investment property nightmares that are stressful, expensive and time-consuming.
With the best property management services in Auckland, the team at Walker Weir know a thing or two about finding the right tenant. Here is our advice on screening a tenant to ensure rental property success.
It All Starts with High-Quality Advertising and Marketing
In order to find a qualified tenant, you need to attract a range of responsible residents to live in your property. A focused, local advertising and marketing campaign is the key to attracting prospective tenants.
The advertising for your property should reflect its benefits and be driven by a knowledge of the local community and its demographics. This allows you to attract an appropriate initial group of interested tenants, making it easier to make a great choice.
Things to Look for When Screening Your Tenants
From the initial group of enquirers, you can then begin to narrow down the tenants based on a range of desirable traits. Things to look for include:
- Tenants who thoroughly complete the application
- Proof of identification and income
- Adequate references from employers and previous landlords
- A documented history of paying rent on time, being a good neighbour and earning enough income
- Sound reasons for why they are leaving their current home
- Tenants who are willing to pay above the indicated rate
Signing on the Dotted Line
Following a thorough screening process, signing the tenancy agreement and all other relevant documentation is also important. This confirms that all the rights and responsibilities of each party are understood, as well as the potential consequences. A bond can also be collected from the tenant at this point.
Property management tools and resources can be invaluable at this point, as they help to protect the interests of all parties involved and conveniently store important information and documents for landlords. Secure cloud-based software that is easily accessible can give you peace of mind that nothing slips through the cracks.
Ongoing Property Inspections
Tenant selection is really an ongoing and active process that is reinforced by property inspections. Entry and exit inspections with detailed photography and videos can ensure that a property remains in the agreed condition for the life of the lease. Equally, routine inspections can keep a close eye on the condition of the property to ensure everyone is living up to their responsibilities.
Have the Whole Process Taken Care of for You
Most landlords don’t have access to specialist tools, affordable marketing and legal contracts, let alone the time or knowledge it takes to actively select and manage a tenant. Property management services from Walker Weir Property Management can handle the entire tenant experience for you in Auckland.
From marketing to regular inspections and bond collection, we do it all. To make your property management easier, phone 09 972 1212 or visit us online for more details.March 15th, 2018
When most people think of investing in properties, they picture the financial freedom and passive income that comes with investments. While it’s true that property investments can be profit-generating machines, they can also be black holes for your time and money, leaving you with a number of issues.
People don’t talk about investment property nightmares, but it’s important to understand the mistakes you could make and how to avoid them. To put you on the road to financial freedom with property investment, learn more about avoiding these common problems.
The Nightmare Tenant
Perhaps the most common property investment nightmare, a bad tenant can range from someone who doesn’t pay their rent on time to someone who physically destroys your property. Most of the time, bad tenants get into properties because of poor screening processes and a desire to avoid high vacancy periods.
While low vacancy periods are important, placing quality tenants in your property is, too. This doesn’t always mean the highest paying tenant, either, although price is definitely important. It’s essential to do research into a tenant’s rental history, looking at things like their past behaviour and ability to pay rent on time.
A fully-equipped property management service is essential in this process, as professional property managers will have the tools, expertise and time to find the right tenant for your property.
The Horrors of Mispriced Rental Properties
An incorrectly priced rental investment property might not seem too dire at first, but this can have far-reaching consequences for property investors.
For properties that are under-priced, investors are obviously getting far less rental income than they deserve based on market rates. Investors often forget that real estate isn’t an instant solution to their financial goals, with costs including maintenance, renovation and marketing to worry about, too. When coupled with an underperforming property, your earning potential can be seriously diminished.
Overpriced rental properties may seem like a dream come true, but this is often the reason investors can’t attract or retain quality tenants, leading to high vacancy periods that eat into their funds. A balanced approach to property pricing will extract the highest rental income and the best-suited tenant, meaning your property is never under or overpriced.
Due Diligence Disasters
The desire to get into the property market can sometimes lead investors to make impulsive decisions. At other times, an investor simply won’t know what to look for or how to look for it. Both of these scenarios compromise your due diligence and can leave you stuck with expensive mistakes.
For example, investors who don’t have professional inspections performed on a property could end up with a leaky property, an investment that has been exposed to drugs, or a property that is otherwise dilapidated. Due diligence also applies financially, and investors should know exactly what they’re getting involved in, especially in more complicated circumstances such as off-the-plan purchases or body corporate properties.
The Key to Avoiding Investment Nightmares
Avoiding investment nightmares is as simple as doing thorough research and recruiting a professional wherever you have a knowledge gap – however big or small. For example, when searching for an investment loan, consider talking to a mortgage broker. When it comes to managing your property and your tenants, rely on expert residential property management experts.
Walker Weir is Auckland’s property management professionals, offering local, personalised and comprehensive services for landlords. From tenant selection to advertising and inspections, we will work to maximise your income. For more information, call 09 972 1212 or visit our team online.
March 1st, 2018