Renting out an investment property can be a highly lucrative way to better manage your capital and grow your wealth over time. However, one of the biggest issues you face in doing so is finding consistently great quality tenants to whom you will rent your property out. Well, to help you do just this, here are our 5 expert tips for finding the ideal tenants.
1. Update your property’s interior
The only way to attract great potential tenants is by offering a property that is of a high enough standard. Great tenants are attracted to properties that look modern, clean and well furnished. In turn, they will be more inclined to treat them with the respect they deserve. So it is well worth your while spending a little money on updating the property before you start taking viewings.
2. Look into all applicants’ ability to pay
This will require you to look at their existing income statements, as well as their credit score over time. You can spot great tenants in those people who have great credit and who have never defaulted on payments before. Similarly, look at exactly how much debt they have and see whether or not this already swallows up the majority of their monthly income.
3. Advertise broadly
In order to find a great tenant, you will need a broad enough pool of candidates to choose from. There are loads of places for you to advertise and make use of, including:
– Facebook groups
– Local newspapers
– Good old fashioned word of mouth
Increase your cashflow by self-managing your property.
4. Use your instincts
This is an important step and one that far too many property owners seem to ignore. Just because a potential tenant looks good on paper, it doesn’t mean that they are necessarily right for you. Opt for someone with whom you have a good immediate relationship and trust your instincts in turning away people you aren’t sure about.
5. Don’t forget to manage the exterior
When preparing to let a property, landlords often forget to put time and effort into sprucing up how a property looks on the outside, especially if you own just one flat in a block and other landlords don’t seem to be putting in much effort. Even cleaning and tidying any stairwells and green areas will go a huge way in improving the overall look and feel of the property. In turn, this will attract a broader range of tenants who aren’t just looking for a great property inside, but outside as well.es.
By following these five simple tips, you should be well on your way to securing great tenants who you can rely on each and every month. Just remember, finding great tenants also comes down to being a great landlord. Maintaining the property well and swiftly dealing with any issues will go a long way in helping you to keep tenants and to gain referrals in the future.