It’s likely you’ll go through a number of emotions before making the big decision to buy an investment property. One of them is typically worrying about tenanting the property. Here are our top five tips for maximising your chances of attracting and keeping a tenant.
Buy the right property
While this may seem logical, it’s quite common that people will be so focused on what they want to buy that they don’t see the bigger picture. You don’t have to purchase a property that you would want to live in since your needs and tastes will differ to others. But don’t buy a tiny unit at the back of the block facing a brick wall just on top of the bin collection area that has a thin ceiling where you can hear all manner of going on upstairs. Once a tenant has lived there for a week they’ll be wanting to move out! Buy a property that will appeal to the demographic of the area that it’s within.
Set a realistic price
As a landlord, you’re selling accommodation on the open market. If it’s a hot market, cash in and charge more. However in a soft market, you have to make your property more appealing and lower the price. Don’t dig your heels in and demand that your property is worth a certain amount of money – it’s only worth what people are willing to pay. Be realistic and flexible and you’ll win the tenant.
Present the property well
A splash of paint on the walls and a professional clean between tenants can do wonders to a property. Prospective tenants often spend less than five minutes at a viewing before racing off to the next one. Make sure they remember is that it was nicely presented, not the stains on the walls or carpet.
Be a good landlord
Your tenant is effectively your customer and you need to look after them. Be responsive, fix issues promptly and don’t skimp on replacement items. If your property is well-presented and your tenants feel that you’re committed to maintaining it, they’ll turn it into a home and will be less likely to leave.
Get the right property manager
The right property manager will help you to achieve all of the above. They know the market so they can help you to make the right pricing decisions and can take the hassle out of managing the property. It’s worth taking the time to find a great property manager, so do your research and keep looking until you know your property is being well taken care of.
If you follow the above points, you’ll be maximising your chances of attracting and keeping a tenant. But make sure you have realistic expectations and speak to you advisor to have a contingency in place in case your property doesn’t rent right away.