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 six tips to tenant an investment property so you can maximise your chances of attracting and keeping a tenant.
Buy the right property
This may seem logical, but people are often so focused on where they’d want to live that they don’t see the bigger picture. You don’t have to purchase a property that you would want to live in. Your needs and tastes will differ to others. Obviously don’t buy a tiny unit facing a brick wall with walls so thin that you can hear all manner of things going on upstairs. Once a tenant has lived there for a week they’ll be wanting to move out! Purchase a property that will appeal to the demographic of the area that it’s within.
Buy in the right area
If tenants can have a great lifestyle by being close to their favourite cafes you’re more likely to attract them. Proximity to grocery shops, gyms, cafes, restaurants and parks significantly improves rentability. Knowing the local traffic bottlenecks and proximity to public transport will also help you determine the liveability of a property. Depending on the type of property, you may also want to consider what schools are nearby.
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. Remember your property is only worth what people are willing to pay. Be realistic and flexible and you’ll win the tenant.
Present the property well
Just because you’re not living in the property, doesn’t mean you should skimp on quality or presentation. A tenant is looking to build a home – a place where they’re comfortable, can stay a while, maybe even bring up a family. 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
Our final tip to tenant an investment property will help you to achieve many of the above – the right property manager. 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. 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 your advisor to have a contingency in place in case your property doesn’t rent right away.
Rebecca is passionate about promoting the positive impact of quality financial advice on personal wellbeing. Read her full bio here.
