Successful property investment is all about achieving a consistent and profitable revenue stream. Finding and keeping quality tenants is one of the most important aspects in this regard.
Here are some tips for attracting and retaining great tenants and making the most of your property investment.
Do Your Research
Think about the wants and needs of your ideal tenants. Great tenants will want a clean and well-maintained property. Others might have specific needs, such as a fenced property for pets or young children.
Be prepared to make changes or upgrade certain aspects of the property in order to attract the best tenants. You should also check out the competition – compare rent, size, condition and location with other rentals in your area.
Choosing the Right Tenant
The more you know about a rental applicant, the more certain you can be they’ll make a great tenant.
Talk with rental applicants to get a feel for their personality and lifestyle. Adopt a thorough and methodical approach when checking their rental history, credit history, income and references. When you speak to tenants and referees, listen for any unusual hesitations and evasive responses.
During the interview, ask them:
- What attracts them to this property
- Why they moved from the last two places they rented
- Whether they’ve been involved in tenancy disputes, and;
- Whether they’re familiar with their responsibilities as a tenant
The answers to these questions will help you determine whether they’ll make an ideal tenant. Once you have found a great tenant, establish a positive but professional relationship with an open line of communication.
As a rule if you are inexperienced as a landlord we would highly recommend using the services of an experienced property manager.
Spruce up Your Property
Renovating an investment property can seem like an unnecessary cost, but it pays off when it comes to attracting and keeping good tenants. Modern appliances and a new paint job increases the value of your property in the eyes of potential tenants and encourages them to respect the place.
Any extra expenses you incur while improving and maintaining your property will be repaid by the value of a long tenancy. A responsible tenant who is satisfied with their property will have less reason to move and is more likely to pay rent for years to come.
Be a Generous Landlord
Many landlords like to reduce the risk of property damage by refusing to allow pets or extra fixtures. By expressing generosity, you can increase the likelihood of attracting more tenants and create goodwill over the course of the tenancy.
Pet-friendly rental properties in Auckland are in high demand, earning an average of $20.49 more per week. Permitting pets will help, showing that you trust your tenant makes them feel valued and helps ensure future cooperation, respect and understanding.
Seek Trustworthy and Reliable Advice
The professional mortgage brokers at iLender have extensive experience helping property investors to capitalise on the New Zealand market. Our Auckland based brokers assist customers locally, across New Zealand and overseas, helping you to buy and manage property investments in NZ.
Call us today on 0800 LENDER (0800-536-337) or contact us online with any questions you have about property investment.