Investing in properties is worthless if you can’t find quality, long-term clients for your properties.
Here, we’re going to take you through the steps required to find the right client the first time!
#1. Start Within Depth Applications
Get started by asking potential tenants to fill out detailed rental applications. This should include things like employment history, rental history, references, contact details, and more. The more details applicants give you, the easier it will be.
#2. Check Employment & Income
You’re going to want a tenant who has steady work and a steady income to cover the rent. You can check this with invoices or pay stubs, bank statements, or employment letters. This is what ensures that your tenants can meet their payment obligations.
#3. Check Rental History
If a tenant has previously rented elsewhere, call their landlord to see about their payment history, what type of tenant they were, and if there were any prior issues. A great rental history is a good sign of a tenant’s quality.
#4. Check Credit Reports
Credit reports, although not very often used in Australia, are still a great way to check if an applicant is financially responsible. Look for debts, late payments, or defaults. A less-than-perfect score isn’t the worst thing, but it’s good to have this insight regardless.
#5. Conduct Background Checks
For safety reasons, it’s a good idea to check your tenants for any prior criminal record. This means you can be assured that your tenants have no history of violent or property-related crimes that could risk other tenants or your property. If you don’t want to make this effort for all your clients, you can check just the ones that are in your final ten or five.
#6. Contact Personal References
It’s a great idea to look into any personal references you have been given, although this isn’t as common, it’s a great way to learn more about who your clients are and if they’re a good fit for your property.
#7. Meet Them in Person
Prospective clients should be met in person, this doesn’t mean all of them, maybe just your top ten. This will let you gauge their personality, communication skills, and how well-presented they are.
#8. Set Expectations Early
During the process be transparent about rent payments, tenant responsibility, and property maintenance. This will help prevent misunderstandings that can happen down the track.
Sounds Hard? It is!
If all of these steps sound like just too much to handle on your own (especially if you own multiple properties) it might be time to engage in property management services.
Don’t rush in, however, as not all property managers are made equal. In our humble opinion, when it comes to the Point Cook Area in Victoria and the Western Suburbs, you really can’t beat Established Property and its history of great work and client satisfaction!