Renting Out Your Property? Practical Ways To Attract And Retain Good Tenants
Finding and retaining high quality tenants is undoubtedly one of your primary objectives as a property investor. When you consider how much revenue you will miss out on if an investment is sitting vacant for a week, a fortnight, a month - you will clearly understand the importance of finding and retaining good ones.
But what exactly is a good tenant and how can you reach and appeal to them?
In essence a good tenant is one who pays their rent on time, looks after your property, communicates openly and honestly with the property manager about any issues and abides by the lease agreement at all times.
Here are some practical ways to help your property attract attention from good tenants.
Maximise the appeal of your investment property
Renters often spend considerable time looking for a property to rent and as a result are very discerning as to what features they will actively seek out. Look at your property through renter eye’s; is there an opportunity to add some extra features to your property to make it more appealing to target tenants without over capitalising?
Some popular property changes that can help add renter appeal include:
- A fresh coat of paint throughout the property
- An updated kitchen
- New kitchen appliances
- New vanity, tiles and bathroom fittings
- Air conditioning / heating
- Washing machine
- Good quality blinds, shutters, curtains
- Built in Storage
- Improve the internet connection
- Outdoor space
Make sure you talk to your Property Manager about what they would suggest. They can guide you on what your target tenant group would value and the impact it could have on your property’s appeal. Checking in with them can also help you avoid making changes that won’t add value or help attract tenants.
Have the property professionally cleaned.
Before photographing and opening the property for inspections it’s a good idea to get it professionally cleaned. If the property is still tenanted talk with your property manager about the best way to engage with the tenants to make sure the property is presented at its best for professional photography
Create a compelling rental listing
Creating an impactful advertisement with professional photography can help your property stand out on the rental listing portals such as rent.com.au, realestate.com.au or domain.com.au. Experienced property managers will ensure the copy accompanying the listing has a strong hook in the headline, it is descriptive and provides concise information about the property, along with key location features, amenities, access to public transport, lifestyle benefits etc.
Ensure you’re charging market competitive rent
This is important, you don’t want to price yourself out the market nor do you want to undervalue your property as that impacts your rental yield. Investigate the rental price for similar properties in your neighbourhood and street by searching on property portals such as realestate.com.au, domain.com.au, rent.com.au.
Property Managers live and breathe the local rental market and know how much you could charge. To find out how much rent you could charge for your property click here.
Consider adding extras as part of the lease terms
In some instances, such as in highly competitive rental markets, offering some perks into the contract can be appealing to tenants. Some popular incentives include:
- Adding garden maintenance as part of the lease terms.
- Allowing pets. Pet owners are often willing to sign longer leases and are often prepared to pay a premium rent for the privilege of having a pet. You just need to make sure there are conditions in the lease agreement that stipulate what needs to be done after the tenant leaves such as carpets to be cleaned etc.
Look after your current tenants and leverage the power of word of mouth
By looking after your current tenants, addressing their needs in a timely manner and proactively staying on top of any maintenance issues can help ensure you keep your tenants happy. When your tenants go to leave, if they were happy with their tenancy, they’ll most likely tell their renting friends. In many cases, their friends will be a similar calibre tenant and look after your property in a similar way.
Thorough screening of your applications
This is one of the most important steps to finding a high-quality tenant. Property Managers are skilled at assessing renter’s suitability, and will review the following when assessing the potential of applicants:
- Credit history
- Proof of ID and income
- Thorough reference checking
- National Tenancy Database reviews are always conducted by professional property managers to validate the quality of the applicant
A final word
As an investor there is significant value in attracting and retaining high quality tenants. Our team of skilled Property Managers are experts at helping landlords find, screen and retain good tenants. To talk to one of our team members click here.
McGrath Limited and its subsidiaries, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.
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