Over the past two decades, purchasing investment properties have made a great deal of money for some Australians by providing their owners with a constant stream of steady income. If you currently own an investment property, or are in the market for one, be aware that there are a number of different factors that can impact your return on investment. Of those considerations, having good tenants is of up-most importance.
According to the Australian Bureau of Statistics, over 30% of the Australian population rent rather than own properties. With this much competition how do you attract potential tenants to your property, and then keep them for the long haul?
Put yourself in the shoes of your dream tenant. What would they look for in their ideal rental property? Think about the type of tenant you would like to attract and aim to deliver a lifestyle that suits them. Try to consider the local businesses and organisations that are useful to nearby residents. Transport, education, entertainment, retail, employment prospects, recreational areas and the surrounding community can all have a huge impact on how a prospective tenant or buyer would perceive your investment property.
A property that is well kept and presented will increase your chances of attracting a tenant that takes pride in their home. Consider taking the time to improve and renovate key features of your property. Sometimes, small tweaks to your home – air conditioning, fresh carpet or paint, recently purchased appliances or other minor adjustments – can really enhance how a tenant values your property and drive up your rental income as a result.
The next step is to consider the different channels you wish to use to find your prospective tenants. As it is important to reach the right audience, be sure to do your research on the most popular ways tenants are using to find rental properties and then focus your promotions on these resources. Try to develop the most attractive profile for your home as you can by ensuring that any property listings are clear, comprehensive and filled with high quality photography.
It’s incredibly vital to learn as much as you can about all of your rental applicants before you make your decision on whether or not to accept them. Ensure the real estate agent completes all the necessary background checks and that they have a good employment history. The applicants’ current and former landlords are handy resources in providing insights into previous rental history.
Because of the fluid nature of the rental market, finding a good low-maintenance tenant is exceptionally desirable. Tenants who rarely complain, continually pay their rent on-time and maintain the property at a high standard represent a valuable asset for landlords.
It can be a really useful to introduce yourself to your tenants when they first move in to let them know that you are approachable (if this opportunity is available). Try to always respond to any of your tenants’ enquiries as soon as they arise and occasionally check in with the real estate agent managing the property to ensure your tenants are happy with their living conditions. By making tenants a priority you can gain a reputation as a good landlord that will only make your investment property work easier in the future.
The information in this article is of a general nature and does not constitute as advice in relation to any investment or purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.