You’ve heard the horror stories, you may have even experienced them. In this article we share our fool proof process to choosing good tenants who will look after your investment property.

While investing in property is a numbers game when you consider things like interest rates, land tax, loan repayments and depreciation schedules, the success of it is largely reliant on a more human element.

1. Choosing a good Property Manager (more on that here), and
2. Finding good tenants!

If you get bad tenants it can cost you a lot of money in repairs and legal bills. That’s why rule number 1 listed above is the most important, even though you may think otherwise.

Let me explain…

Choosing a Good Property Manager

A good Property Manager knows how to find genuinely good tenants who will look after your property as their own. They have the experience and systems in place to do this. They consistently abide by strong ethics to follow this system, as well as ensuring the team do the same.

If your Rental Manager doesn’t care about your investment as much as they should and just treats their position as a job, they are more likely to ignore the warning signs of a bad tenant and let some fall through the cracks.

Therefore if you have a good Property Manager, you will most probably have good tenants.

How to Choose a Good Tenant

First you have to attract good tenants with quality marketing and a well presented property. Where possible we use the best quality photos, featuring the best areas of the home and ensure the home is thoroughly cleaned and in good condition. In our experience we have found that the measures we put in place appeal to the right kind of tenants.

But the process shouldn’t stop there!

No reference will go uncalled on our watch. But what really is a must do is a good old fashioned discussion. Our Rental Manager has a discussion with the tenants regarding the specific expectations both the agency and landlord have regarding the tenancy, while respecting their needs in return.

By asking the right questions we can identify any risk areas which require extra thought and attention in determining if this person and any other applicants who will be living at the property strike us as respectable tenants. This is something only an experienced Property Manager will do well.

What are the Qualities of a Good Tenant? 

Things we do/look for;

1. Renters Blacklist Check
2. Check Rental History
3. Hold a Stable Job to Afford Rent
4. Respectful of Your Time
5. Polite & Well Presented During the Interview
6. Provide Completed Documents in a Timely Fashion
7. Respond Promptly
8. Doesn’t Make Financial Excuses
9. Good References

After performing their extensive tenant screening process, your Rental Manager will contact you with their recommendations giving you the opportunity to make a final decision. Where there are multiple recommendations, they will help you to weigh up which option would be best for your preference.

With constant changes and reviews in legislation it is imperative now more than ever to choose the right Property Manager and Tenants to protect yourself and your investment. Call us if you need are in need of a Rental Manager you can rely on.