The most common red flags raised by bad tenants

Inconsistency with payments and the inability to get the bond back from their previous tenancy are some of the most common red flags see among applicants, according to Managed’s Thom Richards.

He said: “Even if something goes wrong with your property when you're moving out and you damage something, a proactive tenant will be open about what the issue was, be open to fixing it for the landlord, to ensure that bond is refunded in full.”

“If it wasn't taken, it means generally that there was an issue when they vacated that property,” the property manager added.

 Landlords’ responsibility

As much as tenants are responsible for taking care of the property that they are renting, investors and landlords must also spend time making sure that their property remains in its best condition in between tenancies.

Many landlords tend to neglect the upkeep of a property because they know that they are going to get returns no matter what, but their inability to be liable for the property’s condition often creates bigger problems in the long run.

Thom said those tenant problems may “snowball” if there is no proper maintenance process being implemented. Being a good landlord, after all, is one of the most important keys to finding and keeping a good tenant.

He explained: “When it comes to tenants moving out because of these issues, they snowball … Starting off with one tenant, [then] they get a little bit worse with the second tenant.”

“Where does that landlord draw the line and say, ‘You are responsible for this damage now that it's become obvious and it's affecting my ability to get another tenant’? It's down to being diligent with your maintenance and your updates and your reporting to minimise those issues at the end of each tenancy,” he added.

Taking care of your tenants in simple ways such as making sure there are no leaking taps or loose doorknob is a simple strategy that will ensure long-time occupancy for your rental property.

Is it time to part ways with your tenant?

Despite being responsible for your tenant’s satisfaction, it’s also important to know where to draw the line—are you, as a good landlord, merely taking care of them and their needs or are you already overcompensating for them? In order to make sure that you’re making the most out of your investment, you must avoid “marching to the beat of the drum” or, worse, being pushed around by your tenants.

The simple solution? Education, according to Thom.

“It's understanding, as an investor, what your responsibilities are, what your requirement to them is ... then it's up to you to decide if you want to provide those additional perks … You've gotta work out exactly what the real benefit is,” he said.

A good relationship between the tenant and the landlord will help resolve just about any issue in a manner that is both convenient and efficient for all parties concerned.

If for example, your tenant has only been living on your property for six months but is already demanding improvements, then it might be a cause for concern. On the other hand, if you’ve got someone who has treated the property perfectly over a period of time and have taken rent price increase without complaints, you would want to make sure they are taken care of so they stay longer.

Success, overall, means simply striking a balance between goodwill from the landlord, cooperation from the tenants, and understanding among all parties.

“You just need to make sure that both the tenant and the owner are on the same page with what they want to achieve,” Thom concluded.

 Tune in to Thom Richards and Nick Bouris’ episode on The Smart Property Investment Show to know more about the best tools, tactics, and tips to manage your properties and make the most out of your investment.