What you should be looking for in a tenant
Mon October 31, 2016
With so many of Sydney's residents living in rented homes, investors that are looking to lease out a property play a huge part in keeping the city's population sheltered. In fact, with it becoming more and more difficult to get onto the property ladder for first home buyers, the role of landlords is becoming more important than ever.
However, that certainly doesn't mean that investors should lease out their real estate to just anybody. In order for both parties to enjoy the benefits of a good tenancy, it's critical to take your time during the screening process and find a good match. That's where an experienced property manager can be handy, bringing a wealth of knowledge to the table that will help landlords make the right decisions. With that in mind, let's take a closer look at some of the most important elements to keep in mind when searching for the perfect people to live in your investment property.
Maintaining a regular flow of rental income is perhaps the most important aspect of leasing out a property.
Regular rent payments
From a landlord's perspective, maintaining a regular flow of rental income is perhaps the most critical aspect of leasing out a property. The last thing that you want is any interruptions in this revenue stream from tenants that can't afford the rent or are unreliable when it comes to payments. If you eventually have to find new occupants, then the property will invariably sit empty for at least a few weeks, which is a surefire way to disrupt payments that you may be reliant on.
So, how can you determine whether or not a potential tenant will be reliable with their rent payments? Well, there are a number of signposts you can look to, with one of the best being references from previous landlords or property managers. By speaking to these parties, it's possible to get a fair idea of a tenant's history. Similarly, talking to employers will give you a great sense for how a potential occupant is perceived in the workplace, as well as the stability of their income.
Finally, if you're still not convinced, you can always get a credit history check, which will let you know for certain whether or not there are any bad debts in the past. These are definitely good warnings to heed, and your property manager will be able to run you through all of these issues when it comes time to make your decision.
Caring for the property
One of the things that makes property such a popular investment is the fact that it doesn't simply generate revenue, but holds value exceptionally well. In Sydney, this is especially true, with home prices increasing dramatically over the last decade. If you want to ensure maximum return when selling though, you'll need to ensure that the property is kept in tip-top shape. You don't want to be sinking money into an investment to carry out excessive repairs, or trying to convince property buyers that any damage which has appeared isn't serious.
To avoid this, in particular if you're planning on selling sooner rather than later, it's a good idea to pick tenants that you know will look after the property. For obvious reasons, a retired couple is a far safer bet than a gaggle of students, and similarly it's well worth thinking carefully about pets, children or anything else that could result in damage to your investment.
On the other side of the coin, being accommodating to these factors could help you to pull in more rent, but if you have concerns or want to talk through your options, it's always best to get in touch with an experienced agent, so contact Laing+Simmons today with any queries.