How to attract top tenants

Your investment property is only as secure as the tenants who live in it.

Finding reliable tenants is crucial; the rent is more likely to be paid on time, the property more likely to be well cared for, and threat of your investment sitting vacant for long stretches of time is reduced.

Qualifying and vetting the best tenants is an exhaustive process, especially for new investors who haven’t been through it before. It’s a good idea to work with expert Property Managers like the team at Nelson Alexander – professionals who are experienced in the art of attracting and screening tenants. They can do much of the legwork on your behalf, presenting you with a short list of suitable candidates to choose from.

Even if your Property Manager is overseeing the process, savvy investors will benefit from having a thorough understanding of how to attract quality tenants to their property. Here’s what to keep in mind.

Prepare the property
Minor maintenance must be attended to before the property is listed. This includes having carpets steam cleaned, tidying the gardens, ensuring the whole dwelling is thoroughly cleaned, and checking that smoke detectors are working. The better presented the property, the higher the calibre of tenant you are likely to attract. Keep in mind that small improvements to the property may help boost the level of rent you can reasonably ask for.

Set the rent
The rent must be set at an appropriate rate. Your Property Manager should appraise the property and take into account factors like local demand, the current economic climate and comparable rental properties. Be realistic about the level of rental income you can expect to achieve; setting the rent too high will result in an empty property, while setting it too low can suggest to potential tenants that all is not as it seems. The right level of rent will generally help secure a tenant faster.

Advertise your investment
To find suitable tenants, the property must be adequately exposed to the market. There are a number of ways to advertise a rental property, including the major online property portals, as well as our own Nelson Alexander site where your listing will get plenty of attention from local renters, attention-grabbing “For Lease” boards, and office rental lists. More landlords are making use of professional photography to help their listings gain extra traction.

Screen your applicants
Different agencies have different policies around tenant selection. At the very least, professional references, rental and employment history and a credit check must be taken into account to determine if the applicant is a good fit. Typically, your Property Manager will do this and then give you a selection of suitable tenants to select from.

About the lease
Provide a detailed condition report and be transparent about the state of the property. This way, all parties are clear about the original state of the dwelling when maintenance or repairs are later required. Down the track, it’s worth renewing the lease if both you and your tenants are satisfied with the current situation. Good tenants are worth hanging onto, and keeping them on board gives you a greater degree of security in knowing the property is being properly cared for and that rent will be paid on time.

Maintenance is key
Keeping a property in good condition can help attract quality tenants who are willing to pay a little more for a well maintained home. Remember that repairs, maintenance and depreciation on capital works can be claimed as tax deductions. Ensure your Property Manager has trustworthy tradespeople ready to respond to tenant requests for maintenance and repairs. Not only does a well cared for property attract great tenants, taking the time and effort to help the tenants keep it in good shape can build rapport.

Conducting routine inspections
Routine inspections are crucial, and the landlord is typically welcome to attend. Keep in mind that, while you own the house, a tenant might feel uneasy about having the landlord and Property Manager wander through, whilst they are not present. Your Property Manager should give the tenants adequate notice of every inspection, as well as making it clear that they can be present if they prefer.

Finding reliable tenants can be a lot of work, but it will pay off for all parties in the long run.