So who is your ideal tenant? Simply someone that pays rent on time? To have a smooth and successful journey as a property investor, there’s a few more things you need to look into when choosing the right tenant.

Here are our top tips when it comes to choosing the right tenant for your investment property:

1. Know your target audience

It’s important to understand the type of property you have and who it might attract. For example, is it a house that’s close by to schools and parks, or is it an ultra-modern inner city apartment? The differing factors between properties is what attracts different demographics, so make sure you’re aware of your situation and keep it realistic.

2. Remain objective

Choosing the right tenant for your investment property needs to be an unemotional and objective process. You might even find it helpful to have a checklist of all the things you would or wouldn’t like, as this may make it easier to refer to when narrowing down your choices.

3. First impressions count

If you present the property in a clean, well-presented manner, you’re representing how you would expect the property to be maintained. It might mean you need to give the property a fresh coat of paint, update the fittings, or other minor renovations and improvements, but this will all be worth it when you attract people willing to keep it as well maintained as possible.

4. Do your research

Ensure that the asking rent for your investment property is in line with the area it’s in and to similar properties. If it’s too low you might attract too much unwanted attention from people trying to simply snag a bargain, or too high you will financially rule out many people and be without rental income for longer.

5. Screen thoroughly

When it comes to screening applicants, you need to read between the lines and glean as much about your potential tenant as possible. The biggest factor is whether or not they have the means to pay the rent, and this can be figured out based on their income statements and other supporting documents.

Make sure to call at least three references and find out as much as you can about the applicant’s rental history, or simply who they are as a person in general. You should also speak with their previous rental agency or landlord and find out as much as you can about their renting history, such as if they paid rent on time, if they left damage at the property, or even if there were major communication problems. All of these questions will give you a better understanding of the applicant than just what is written on their paperwork.

Although you can search for and choose a tenant yourself, many investors find it helpful to get the advice and experience from a reputable rental agency when it comes to looking for the right tenant.

Here at CPS Finance, we can take out the guesswork, and assist you in choosing the best tenant to continue your investment journey with. Talk to us today!

1. Maintain a positive relationship with your tenants

Keeping your tenants happy will encourage them to stay in your property at a price that you prefer. A few ways to keep your tenants happy include offering incentives like allowing pets in the property, listening to their concerns and acting if necessary, performing regular maintenance on the property and ensuring you offer regular and open communication.

2. Know the rental prices in the area

Owning a rental property requires you to maintain knowledge of the current market and means you need to be flexible when there are shifts in the market. Keeping up-to-date with rental prices in your area will help you identify any market changes and will ensure that you are able to regulate before your tenants leave for a better option.

3. Improve the appearance of your property

Making small improvements to the appearance of your property will make your tenants happy while at the same time boosting the demand for your property. Small improvements may also delay the need to make a rent reduction.

4. Review and improve your marketing strategy

Your marketing strategy can mean the difference between maintaining a high rental rate and ending up with a vacant property. The best marketing results can be achieved through an omnichannel approach, for example through the combination of social media marketing, email marketing and offline methods such as pamphlets and flyers.

5. Don’t be averse to making a rent reduction

The one thing that is worse for a landlord than making the decision to reduce your property’s rental rate is experiencing tenant vacancy. In a tenant market, you’re competing against shrinking rental prices so it’s important to remain competitive in order to reduce the risk of tenant vacancy. Reducing your rent is also a sure-fire way to keep your tenants happy.

To discuss your rental options, or if you would like more information on the current market, talk to CPS Finance today.