Finding a good tenant forms the foundation of a successful investment. So how do you acquire a good tenant?
Checking a tenant’s references and doing the appropriate background checks are critical tasks to give you the best chance of a smooth running and successful investment.
Professional Property Management staff have access to systems, and have the knowledge and experience to carefully look into applying tenants and thoroughly evaluate them. Investors would be wise to choose an experienced Property Manager and agency team that focuses on gaining a quality tenant. A carefully selected tenant will result in a more trouble-free investment.
Two of the most important background checks your Property Manager can do are previous rental history and employment record checks. This sounds fairly straight forward, but there are many traps for the inexperienced.
It comes down to finding out from the information gained if the applying tenants have an excellent track record from their past tenancies. That means paying their rent on time as well as looking after the rental properties to the expected standard. Also the current ability for the tenants to pay the rent is evaluated through information and proof from their current employers.
Owners managing their own property often get too involved to be impartial. One of the mistakes many property owners make is relying on personal references when investigating potential tenants. A bad personal reference rarely exists – friends and relatives won’t write or tell negative things about those close to them. Professional and background checks are absolutely essential.
A Property Manager’s experience and expertise, as well as that of the agency’s team, will save you a lot of time, money and stress in managing your investment.