Ownership of residential rental properties is a method favoured by many Australians, especially those with self-managed superannuation funds, to build investment portfolios. The secret to keeping these properties earning income is to keep them occupied by tenants who look after their rentals and pay the rent on time, every time.
Good Tenants Prevent Income and Property Loss for Owners
Owners whose properties are unoccupied for extended periods of time lose rental income, and their assets are at an increased risk of being vandalised. If this happens, they must pay for the repairs and face increased insurance premiums, which add to the cost of holding the property.
The best way to prevent this is to choose tenants carefully, and at Bunbury Real Estate, our rigorous process enables us to put forward quality tenants for the properties we manage on behalf of our owner clients. When a property is advertised for tenancy, we certainly don’t take the first applicant who comes along. There are several checks we do first before any decisions are made.
Background Checks of all Rental Applicants are Standard Practice
The most obvious check is that the tenant has the capacity to pay the rent. This is a similar process to taking out a loan in that we check their employment and credit status to identify any areas where there could be financial stress. We also ask for references from former rental agents or owners where the tenant has already established a relationship.
Some of our rental property owners accept the presence of pets, and it is becoming more popular for tenants who have pets to also present references on behalf of their furry family members. Well-trained pets are often better behaved than some humans, and we have owners who acknowledge and accept that.
Diligent Property Managers Identify Issues Early
Our property managers also like to establish a personal relationship with our tenants, where possible. Regular property inspections are an opportunity to identify issues that could become problems if they are not dealt with quickly. It could be something as simple as asking for the yard to be tidied if it looks a little unruly, to working with a good tenant who may be temporarily in arrears.
Matching Tenants with Their Ideal Dwelling is Important
Choosing the right tenant also involves matching an applicant with the type of dwelling that suits their needs. A good tenant is more likely to stay long term when they are living in their ideal location, in the type of property they were seeking. There will always be management problems if the tenant and the dwelling are not suited to each other.
Our professional property managers have many years of experience at keeping our properties tenanted with good people who turn a vacant dwelling into a home.