The rental market has softened in recent times. Therefore, selecting the right tenant for your property is crucial. Whilst the agent has a right to offer a view on the respective applicants, ensure that the final approval rests with you as the landlord.
When you are selling, attaining the highest possible price is the only game in town. However, when you are leasing your investment out, there are a number of factors to consider aside from price to ensure that you secure the right tenant.
Find out as much as you can upfront about the tenants that apply for your property. In many cases, a share household may offer more than a couple or family. However, your property may not work well or suit three or four independent parties who are sharing. Even though the income may be lower with a couple, the fit may be better for all concerned. If the Brady Bunch intend on leasing your studio apartment, you know it’s an unsustainable circumstance, so don’t enter into it in the first place.
A lower paying tenant that is prepared to stay for the long term may be better than a tenant who only needs a six month lease. Rolling over tenants is expensive. The benefit of a slightly higher rent is quickly offset in vacancy periods and letting fees. Regardless of the rent, the best performing investment properties are leased!
A high weekly rent from a slow or non-payer is just not worth it. Property is an intensive enough investment play without sweating on rent from a tenant in arrears. Practically speaking, the bond is not much of an insurance against a non-payer, so don’t fall into the trap of thinking it is.
Allowing pets can increase the rent that you are likely to get. Allowing pets can be smart move at times. In some cases upon vacating, you would never know that the tenants had pets. In other cases, the house has been scratched pillar to post and smells like a neglected farm. If you are allowing pets, find out details in advance. A bullmastiff in an apartment is only going to end in disaster, regardless of well meaning assurances from the tenant or the agent.
The key to success with investment properties is to remain conscious of market fluctuations and consult with your property manager. Constantly arguing against your manager’s advice won’t benefit you and delegating the entire process to them is less of a solution.