Great tenants improve cash flow and help you to execute your investment strategy. Here are five tips for finding awesome tenants.

Just think about all of the problems that you face when you have difficult tenants.

Wealth for Life bad tenants
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The rent doesn’t get paid on time so you never quite know what your cash flow will look like from one week to the next. They may cause damage to the property or break the rules that you’ve put in place.

In the worst-case scenario, you could end up thousands of dollars out of pocket.

That’s a situation that Glen and Pauline wanted to avoid when they came to Wealth for Life.

Glen and Pauline hadn’t had the best experiences with investing. They’ bought property in Melbourne before. But a combination of poor management and an unworkable strategy caused them to lose money.

They’d listened to the “experts” and lost out as a result.

But they knew that investing could help them to secure their financial freedom. That’s why they came to Wealth for Life.

Though sceptical, they trusted us to create a great strategy for them. We also took over the management of their properties to ensure they got great tenants.

They now have a seven-property portfolio that generates $3,130 per week.

That’s over $160,000 in passive income per year!

Finding great tenants is an essential part of the management service that Glen and Pauline take advantage of.

Here are five tips for finding quality tenants for your own investment property.

Tip #1 – Call Their Previous Landlord

Why take the risk of accepting a tenant with no checks into their background?

Wealth for Life call past landlords
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When you interview prospective tenants, ask for a list of previous landlords that can act as their references. Most will be able to offer a couple unless they’re brand new to renting.

Call every single landlord on the list.

Ask them about any problems that they had with the tenant. Specifically, ask about how they managed their rent payments and what condition they left the property in.

You may end up hearing a horror story that shows you the tenant isn’t right for your property.

Again, call every landlord that you have details for. A tenant might have caused issues for one and not the others. You want the most complete view possible before letting them into your home.

Tip #2 – Verify Their Income

Think of your rental agreement in the same terms as a lender thinks of their loan.

Wealth for Life verify income
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You need to know that a tenant can “service” the agreement. After all, they’re committing to a regular payment schedule with you. And you need that money to pay the loan on the property or to continue building your investment strategy.

Once you’re in that mindset, you can see why verifying an applicant’s income is so important.

If they’re employed, ask for payment records from the last three months. It’s also worth speaking to their employer to ensure they’re in good standing with the company.

Self-employed people present a little more risk. You may want to ask for a couple of years’ worth of records so that you can see they’re earning a stable income.

It’s also worth running a credit check to see what the tenant’s liabilities look like. Someone may have a great job. But they could also have thousands of dollars in debt that they may prioritise over paying the rent.

You want someone who’s gainfully employed and capable of managing their money. Don’t just take a tenant’s word for it when it comes to their employment status.

Tip #3 – Showcase the Property’s Best Qualities

Remember that tenants evaluate you as much as you evaluate them. The best tenants have specific needs that they want you to fulfil.

Wealth for Life showcase your property
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They also want your property to meet a certain standard. If they don’t see those standards met while they’re searching, they won’t give the property a second look.

Your job is to showcase the property’s best features. This starts with the listing.

Take attractive photos that showcase the space and any interesting design features. If the property has a garden, take care of it and show it off in the listing.

Use the description to go into more detail about specific features and room sizes. Go beyond the basics and talk about what makes the property so enjoyable to live in.

Your work isn’t done yet.

Most prospective tenants will want to view the property. If they turn up and the place is a mess, you’re creating a terrible first impression.

Stage the property so that it looks as good as possible. If the current tenants haven’t moved out yet, it’s worth working with them to make the property presentable.

Don’t rely on the tenant to showcase the property. They’re still living in it so their priority isn’t on making it look as good as possible for other people.

Tip #4 – Always Meet the Tenant in Person

Why should you always meet your tenant in person before letting them into your property? 

Wealth for Life meet the tenant
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Just ask American landlord Jimmy Moncrief.

Jimmy Moncrief decided that he’d rent his property out virtually. After making it look the part, he put it on a website and attracted a few prospective tenants.

One seemed like the perfect tenant.

She paid the deposit and a full month’s rent in advance. And all went well for five months.

In the sixth month, the rent didn’t come. Jimmy emailed the tenant to ask what had happened. She told him that she’s actually left the property and just forgotten to tell him.

She also left her cat behind, which left Jimmy with quite the mess to clean up when he went back to the property.

In this case, failing to meet in person meant there wasn’t a relationship between tenant and landlord. That may have made it seem okay to just leave without giving notice.

Meeting the tenant in person also allows you to get your gut involved. You can interact with them for a while and see what your gut tells you.

Your instincts might warn you away from someone who otherwise seems okay.

That’s a feeling that you’ll never get if you’re not meeting prospective tenants beforehand. And that gut feeling could save you from taking on someone who isn’t suitable.

Tip #5 – Look for Stability

Quality tenants will stay in your property for a long time. You can rely on them to provide a regular source of income.

Plus, you don’t have to worry about losing out because the property’s sitting vacant.

This is why checking a prospective tenant’s history for signs of instability is so important. For example, you can check their employment history to see how often they change jobs. Several jobs in the space of a couple of years suggest that the tenant struggles to settle in the workplace.

It also suggests that there’s a risk they may lose the job they have now. Talk to the tenant to find out why they’ve worked in so many roles. It’s also worth talking to previous employers to verify what they tell you.

The same goes for applicants that have moved to several different properties over the last couple of years. That instability suggests that they clash with their landlords.

Find Great Tenants With Wealth for Life

You want quality tenants who enable you to move forward with your investment strategy. Following this article’s tips will help you to find them.

But you may want more hands-on help from experienced property managers.

That’s where Wealth for Life comes in. We’re not just property investment experts. We can also help you to manage your property and find suitable tenants.

Just get in touch today to find out more.

Great tenants improve cash flow and help you to execute your investment strategy. Here are five tips for finding awesome tenants.

Just think about all of the problems that you face when you have difficult tenants.

Wealth for Life bad tenants
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

The rent doesn’t get paid on time so you never quite know what your cash flow will look like from one week to the next. They may cause damage to the property or break the rules that you’ve put in place.

In the worst-case scenario, you could end up thousands of dollars out of pocket.

That’s a situation that Glen and Pauline wanted to avoid when they came to Wealth for Life.

Glen and Pauline hadn’t had the best experiences with investing. They’ bought property in Melbourne before. But a combination of poor management and an unworkable strategy caused them to lose money.

They’d listened to the “experts” and lost out as a result.

But they knew that investing could help them to secure their financial freedom. That’s why they came to Wealth for Life.

Though sceptical, they trusted us to create a great strategy for them. We also took over the management of their properties to ensure they got great tenants.

They now have a seven-property portfolio that generates $3,130 per week.

That’s over $160,000 in passive income per year!

Finding great tenants is an essential part of the management service that Glen and Pauline take advantage of.

Here are five tips for finding quality tenants for your own investment property.

Tip #1 – Call Their Previous Landlord

Why take the risk of accepting a tenant with no checks into their background?

Wealth for Life call past landlords
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

When you interview prospective tenants, ask for a list of previous landlords that can act as their references. Most will be able to offer a couple unless they’re brand new to renting.

Call every single landlord on the list.

Ask them about any problems that they had with the tenant. Specifically, ask about how they managed their rent payments and what condition they left the property in.

You may end up hearing a horror story that shows you the tenant isn’t right for your property.

Again, call every landlord that you have details for. A tenant might have caused issues for one and not the others. You want the most complete view possible before letting them into your home.

Tip #2 – Verify Their Income

Think of your rental agreement in the same terms as a lender thinks of their loan.

Wealth for Life verify income
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

You need to know that a tenant can “service” the agreement. After all, they’re committing to a regular payment schedule with you. And you need that money to pay the loan on the property or to continue building your investment strategy.

Once you’re in that mindset, you can see why verifying an applicant’s income is so important.

If they’re employed, ask for payment records from the last three months. It’s also worth speaking to their employer to ensure they’re in good standing with the company.

Self-employed people present a little more risk. You may want to ask for a couple of years’ worth of records so that you can see they’re earning a stable income.

It’s also worth running a credit check to see what the tenant’s liabilities look like. Someone may have a great job. But they could also have thousands of dollars in debt that they may prioritise over paying the rent.

You want someone who’s gainfully employed and capable of managing their money. Don’t just take a tenant’s word for it when it comes to their employment status.

Tip #3 – Showcase the Property’s Best Qualities

Remember that tenants evaluate you as much as you evaluate them. The best tenants have specific needs that they want you to fulfil.

Wealth for Life showcase your property
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

They also want your property to meet a certain standard. If they don’t see those standards met while they’re searching, they won’t give the property a second look.

Your job is to showcase the property’s best features. This starts with the listing.

Take attractive photos that showcase the space and any interesting design features. If the property has a garden, take care of it and show it off in the listing.

Use the description to go into more detail about specific features and room sizes. Go beyond the basics and talk about what makes the property so enjoyable to live in.

Your work isn’t done yet.

Most prospective tenants will want to view the property. If they turn up and the place is a mess, you’re creating a terrible first impression.

Stage the property so that it looks as good as possible. If the current tenants haven’t moved out yet, it’s worth working with them to make the property presentable.

Don’t rely on the tenant to showcase the property. They’re still living in it so their priority isn’t on making it look as good as possible for other people.

Tip #4 – Always Meet the Tenant in Person

Why should you always meet your tenant in person before letting them into your property? 

Wealth for Life meet the tenant
  • Facebook
  • Twitter
  • Google+
  • Pinterest
  • Gmail
  • LinkedIn

Just ask American landlord Jimmy Moncrief.

Jimmy Moncrief decided that he’d rent his property out virtually. After making it look the part, he put it on a website and attracted a few prospective tenants.

One seemed like the perfect tenant.

She paid the deposit and a full month’s rent in advance. And all went well for five months.

In the sixth month, the rent didn’t come. Jimmy emailed the tenant to ask what had happened. She told him that she’s actually left the property and just forgotten to tell him.

She also left her cat behind, which left Jimmy with quite the mess to clean up when he went back to the property.

In this case, failing to meet in person meant there wasn’t a relationship between tenant and landlord. That may have made it seem okay to just leave without giving notice.

Meeting the tenant in person also allows you to get your gut involved. You can interact with them for a while and see what your gut tells you.

Your instincts might warn you away from someone who otherwise seems okay.

That’s a feeling that you’ll never get if you’re not meeting prospective tenants beforehand. And that gut feeling could save you from taking on someone who isn’t suitable.

Tip #5 – Look for Stability

Quality tenants will stay in your property for a long time. You can rely on them to provide a regular source of income.

Plus, you don’t have to worry about losing out because the property’s sitting vacant.

This is why checking a prospective tenant’s history for signs of instability is so important. For example, you can check their employment history to see how often they change jobs. Several jobs in the space of a couple of years suggest that the tenant struggles to settle in the workplace.

It also suggests that there’s a risk they may lose the job they have now. Talk to the tenant to find out why they’ve worked in so many roles. It’s also worth talking to previous employers to verify what they tell you.

The same goes for applicants that have moved to several different properties over the last couple of years. That instability suggests that they clash with their landlords.

Find Great Tenants With Wealth for Life

You want quality tenants who enable you to move forward with your investment strategy. Following this article’s tips will help you to find them.

But you may want more hands-on help from experienced property managers.

That’s where Wealth for Life comes in. We’re not just property investment experts. We can also help you to manage your property and find suitable tenants.

Just get in touch today to find out more.

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