The many benefits of quality tenants
Category Rentals
The objective of a rental property is usually to earn a good return on your investment, but also to maintain that investment so that it can continue delivering the expected income streams, and appreciate in value.
To achieve this, two factors are important. The first is a quality tenant, the second is maintaining the property in a good condition that will continue to attract quality tenants. While tenants are not hard to find, and there is often an oversupply of tenants for a rental property, the real challenge is to find a quality tenant.
Quality tenants are more likely to respect the property, pay rent on time, and report any issues promptly. This prevents costly repairs and reduces the risk of property damage. A satisfied tenant is also more likely to renew their lease, minimising vacancy periods and associated costs. Ultimately, a quality tenant contributes to a positive and stress-free investment experience.
Without due diligence and careful vetting, a landlord could end up with a tenant where, within the first few months, rent payments start running late, or in some cases no payment is received. The landlord may also have to deal with behaviour issues, complaints from neighbours or complex managers, and worst, there could already be damage to the property.
A quality tenant is the key to rental success. A thorough vetting process should include a financial check both in terms of affordability and payment history, as well as a background check. Once the tenant is selected, the terms of the tenancy should be well structured with a legally compliant lease agreement which sets out exactly the responsibilities and obligations of the landlord and tenant.
The lease should be clear about the use of the property, as well as any regulations around occupancy such as noise, and the like. An "onboarding" should be undertaken which includes an incoming inspection and briefing to the tenant so that they are well aware of all issues pertaining to their tenancy, and what is expected of them.
Given the importance of sourcing a quality tenant, and ensuring you retain the tenant, the role of a skilled rental agent has become vital to any landlord. Rental agents are experts at sourcing, screening and managing tenants, and skilled at spotting tenant problems as they would have dealt with many different situations.
Once you have a quality tenant, landlords should also focus on retaining those tenants. This can be done in a number of ways. The first is to keep rental increases in line with the market, and to resist the temptation to want to leverage more since it is a good paying tenant. This could risk alienating the tenant. Keeping the property maintained and updating finishes is another way to attract and keep quality tenants.
Ultimately, a quality tenant results in a stable rental income, reduced vacancy costs, and property preservation which will increase the value of your investment. Don't miss out. If you would like to discuss what Seeff's rental solutions can offer you, whether sourcing or managing your rental investment, let's talk.
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Author: Gina Meintjes
