No one wants to find themselves in a situation where they are caught with problem tenants. The trick to making sure that never happens, is to vet tenants well in the first instance, so you're not setting yourself up for any surprises.
So what steps can you take to make sure you really are choosing good tenants for your investment property? Here, we share our property managers’ top tips:
- Get references. Both personal and professional i.e. their employer. References are essential in finding a suitable tenant as they will help you to assess a candidate’s personality, professionalism, employment status and behaviour.
- Ask for bank statements. Checking a tenants bank statements will help you to verify they are being paid regularly, and the amount well and truly covers their weekly rent.
- Check with past landlords or real estate agents. The tenant should provide the details of the last home they rented. Follow up with their previous landlord or agency to make sure there were no issues.
- Get a copy of a passport/driver’s licence. This one is important to confirm they are a citizen or permanent resident, and are legally able to rent property.
- Check online. These days there is information available through tenancy databases online on a tenant’s potential rental history. Note though that most databases require you to be a licenced agent or apply for membership as a landlord.
- Meet in person. If possible, it’s always a good idea to meet with potential tenants in person to make sure everything checks out and you’re 100% comfortable.
Of course chasing down all of the necessary documentation and meeting with tenants can be quite a time consuming process, not to mention all of the other tasks that go along with managing your own investment property.
At Harcourts, our property managers use detailed checklists for prospective tenants, including intensive due diligence, employers’ references and credit checks to mitigate any risk.
Let a property manager take the hassle out of finding and choosing good tenants for you. We’ll spend the time filling out the necessary paper work, collecting and checking in with references, looking through bank statements, obtaining copies of passports and licences and of course meeting prospective tenants.
It’s also a consultative process. We’ll make sure you’re happy with any prospective tenant and let you know where we’re at in the process, every step of the way.
Our team would be glad to tell you more about our property management services in your area.
We could even give an appraisal of your investment property or proposed opportunity.
Alternatively you can find our more about our investment property services here.