Property investors need to be pro-active to attract the best tenants and yields, according to a leading national property investment group.
The Investors Club’s leasing expert, Elizabeth Court, said owners should be completing their own quality checks, be more innovative in attracting tenants and understand the leasing process themselves.
To find quality tenants it is important to work closely with an agent, to check the agent’s work and to oversee the process, she said.
It can also be beneficial to use more than one agent. “Multi-listing your property gives you the best chance of securing a high quality tenant in the shortest time possible,” said Ms Court.
A lease with flexible length is also advisable as short leases can ensure an income while a longer-term one is secured.
Offering offbeat additions and incentives, such as gift vouchers or theatre passes, can help secure the most desirable occupant, while allowing pets – subject to building regulations – can also potentially open the door for more tenants.
Knowing who your tenants are, their financial situation, rental history and any breaches of previous rental agreements is very important.
Ensure you know they can pay the rent – sometimes this can be done by querying the applicant if the new rent involves an increase of $50 compared to their last rent.
“If the rent is more than a third of the tenant’s net weekly income, you should not agree to the tenancy,” she added.