You’ve just
found the perfect property. There is little to repair and it’s ready to rent.
The question is – who do you want to rent it?
There are
two types of tenant in real estate property. Those who are like a breath of
fresh air; who will pay their rent on time and respect your property, and then
there are those who can become a big financial headache.
It’s vital
you pick the right tenant to make your property investment work. And although
you may feel tempted to fill your property fast – after all, your investment
can only generate revenue if a tenant is living there- it is important you make
the right choice.
And the
reason why this is so important? Housing Laws are written to protect the
tenant, not the landlord. This can make trying to dispose of a nightmare
tenant, stressful and expensive.
You can
escape this problem and turn your property into the best property investment it
can be by following some simple rules:
1.
Meet your tenants - most professional landlords, will
let their realtor’s close the deal, but this is an opportune moment for you to
meet your tenant’s and assess their suitability for yourself. So ask yourself
these questions: did they get to the appointment on time? Do they look like
they’ll treat your property with respect?
If you sense something is wrong, you’re
probably right.
2.
Depending
on the type of property- is it a higher end property or a lower end – the way
you check your tenants background will be different. For high end properties
you can perform a check through a credit company. This is a worthy investment
and can save you money in the future.
Just make sure your tenants have agreed to this
check and have signed the lease agreement before you do it. After this
confirmation, the credit company will do a thorough check of their credit history,
which they will then pass onto you. This type of check is great for the above
mentioned properties, but is less useful for lower end properties. Tenants who
apply for these often have poor or no credit rating.
It is still possible to check their
reliability, you just need to take a different approach. Contact their employer
and previous landlord to see the type of person they are. They will be able to
give you an equally accurate view of your future tenant.
3.
Build a great relationship with your
tenants. By showing
them you care for their welfare, they will return the respect. This can be
achieved by answering their queries; doing repairs straight away (the earlier
you repair a fault, the cheaper it will be) and by creating a good communication
network. This can make a real difference to how you tenants care for your
property. And will protect its property value.
You’ll be surprised by how infrequently your
tenant bothers you when you have taken this type of approach.
So take the
time to make the right decision for you. You’ll soon find the only time regular
task you’ll be doing is collecting your cheque every month.
