Important features to look for in a tenant
If you've taken out an investment loan to buy a property and you've gone down the path of DIY property management, then it's likely you'll be the one in charge of selecting tenants.
It can be a tough job, especially if you haven't done it before. But, it's worth it to do your part thoroughly to ensure that your property is in good hands.
This is a very important part of managing your own rental property, as these will be people living in your investment and taking care of it.
It's important to find people that you trust are stable, reliable and are approachable.
Otherwise, you may end up being out of pocket with rent, left with damage to your property, or even ticked-off neighbours.
Reliable and financially stable
One of the most important features to look for in a tenant is reliability. This can mean a lot of things.
They must be reliable with making regular rent payments so that you can continue meeting your investment home loan payments and receive rental income.
Your tenants must also be true to their word. For instance, if they say they will meet you at a certain time, they will show up. This is important if you ever need access to your rental property for maintenance or inspections.
A great way to check if a prospective tenant is reliable or not is to do a character or reference check.
Ask them to provide references that you can call up. Be careful to make it clear not to include any friends or family, as naturally they can be biased.
To find out whether they are financially stable to live in your property, ask them to provide a reference for their current place of employment.
A great feature to look out for in a tenant is whether they are proactive or onto-it. This will come in handy if there are any issues in your home - such as maintenance or even neighbour-related.
Find someone that has the ability to speak up if any problems come about, as it will benefit you to solve these as they crop up.
You must also feel comfortable knowing that they will report any issues to you if they arise. You wouldn't want a tenant breaking something in your property and not telling you until they moved out, as that could make the problem worse.
Their proactivity will also be of use when the tenant moves in or vacates the property.
Any proactive person would see the benefits of organising the connection, disconnection or final rates notices of utilities, for example.