Property Investment Tips: Selecting the perfect tenants

By the resi financial blog team, 17 April 2014

How do I choose the perfect tenant

Making an investment property as profitable as possible isn't just about securing the perfect slice of real estate. You could have a fancy property with a high rental yield in the middle of a popular suburb and still be missing out on profit. The other half of success in investment comes from finding the right tenants.

Selecting the right renters for your property is paramount to securing the maximum return possible, so here are some tips to help facilitate the process of finding the perfect tenants for your investment property. 

Thorough background checks 

The number one rule for selecting tenants is to get in contact with their references and get a good feel for their character. The best point of reference is their last landlord. Find out what kind of tenant they were, whether there were ever any issues regarding property damage or missed payments, and the reason for their departure from the property in the first place. 

This will help you gauge their character - especially with regards to respecting your property - and allow you to make an informed decision. 

Furthermore, chatting with the potential tenant themselves is a great way to get a feel for them. Casually asking about their employment can help you ensure they'll be in a good position to make their weekly rental payments in full and on time. For example, students could be a potential problem - especially if your property has an expensive rent or is in the middle of a high-class suburb. 

Do you allow pets?

One common query asked by tenants is whether they can bring their cat or dog into the property. This is an entirely personal decision on your behalf and something that you will need to discuss with the tenant. Depending on the outcome of background checks, disposition of the potential tenant, and the likely wear and tear impact a pet could have on your property, you may choose to overlook this issue and allow an occupant with pets to start help you grow wealth sooner.

Categories: Home Loans, Property Investment