How to attract and keep great tenants

Investing in property has many financial benefits – if it’s done right. You’ve all heard the adage ‘safe as houses’, because property is almost guaranteed to increase your wealth. From rental income to tax benefits, an investment property can bring in more income than outgoings short-term and capital growth should see investors benefit significantly long-term.

First things first, you need to understand the suburb you are buying in and analyse its supply and demand. At D Residential Group, we do a lot of research into the suburbs our clients are interested in to ensure their financial goals can be achieved. I believe the right location is crucial in determining success while building your property portfolio, so before you buy, please do your own research or contact me for advice.

Once you’ve purchased your home, the most important task of all begins – finding the ideal tenant. Here are some key dos and don’ts when you’re tenant shopping;

Screen thoroughly before selecting your tenant
In a dream world the perfect tenant would find you, but from my experience, that truly is a dream world. A great tenant comes from thorough screening, including employment checks, previous rental references and national tenancy database checks. This can be daunting, which is why a local property manager with time and experience to conduct these checks is a smart move.

Meet your tenant face-to-face first
This may not be realistic where you live thanks to COVID-19, but in Perth right now, we can and do meet tenants on behalf of our clients to ensure they’re the right fit. You place a lot of trust in your tenant to take care of your property and make their rental payments, so meeting them will provide a much more genuine experience of their character. Another benefit of a good property manager is we do this leg work.

On the flipside, I look after all my amazing tenants too so if they have to vacate a property, I will do my best to offer them another rental option.

Maintain the property to a standard you would expect in your own home
Reality alert! Even properties you don’t live in will have extra costs attached. Maintenance fees are inevitable for property investment (although most are tax-deductible), and fixing things in a timely manner will make a big difference to keeping your great tenant happy. Once you have a good tenant, you want to keep them because continual turnover of your tenant will be more work and money than calling the plumber or electrician. Show compassion – it’s your property, but it’s their home.

Negotiate over rent increases
If you have a great tenant but feel the property’s rental value is higher, discuss a potential rent increase respectfully. Consider going through an agent (I know a good one, wink), who can negotiate on your behalf to get the best deal for all parties. Sometimes, accepting a slightly lower rent within a great tenant’s budget is a successful outcome. I’ve been both a renter and a landlord, and know that calm communication, honesty and respect always work.

Follow through on promises
Whether it’s repairing a leaking tap or extending a lease, stick to your word and you’ll create a harmonious environment for your renter. It works both ways too, so try and get all promises in writing to avoid any confusion.

Engage a property manage who cares
You deserve a property manager who cares as much about your property as you do. I always go the extra mile to understand and achieve my clients’ financial goals, while working respectfully with tenants to ensure their needs are met, too. Ultimately, I work hard to foster a peaceful and beneficial relationship between all parties. To see how I can assist with your investment, call me on 0402 888 550.

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