Residential property had the highest returns of any asset class in Australia for the decade to 2018, according to Russell Investments. There’s big money to be made in Melbourne rental properties – however, to be successful you have to get the basics right.
First and foremost you’re going to need to select quality Melbourne tenants. Good tenants pay rent on time, keep your property in shape and are willing to accept reasonable rent increases. Here’s how you and your property manager can pick a winner.
Present your property and gather info at open homes
To find a good tenant you first have to attract them. To do so you must present your property in its best light so that tenants would be happy to live there. Emphasise its strengths and minimise any drawbacks by cleaning and possibly using a home staging professional.
When it comes time for an inspection make sure your property manager is there to screen tenants in person. While being respectful and discreet they should ask questions about their previous tenancies, why they moved and possibly their employment. This will give them a feel for prospective tenants before they even receive an application.
Screen suitable tenants face-to-face and via application
To help you get better Melbourne tenants your property manager will screen for suitability during inspections and then again when they receive applications. Applications should include identification, evidence of income, references to call and details of previous tenancies.
To help you get better Melbourne tenants your property manager will screen for suitability.
If an application is incomplete consider that a red flag. Furthermore, your agent should be experienced enough to read between the lines of an application.
For example, if they’ve had three different tenancies in the last two years that indicates they may be quick to move on from your rental. Once the competition is narrowed down it’s time to check references.
Check references and tenancy databases
Your property will contact employers and previous landlords to screen them for suitability. They’ll ask employers questions like:
- Is the applicant punctual, reliable and honest?
- What are the applicant’s prospects for future employment?
And they’ll ask ex-landlords things like:
- Did the applicant pay rent on time and did they maintain the property well?
- Were there any issues during the tenancy?
- Would you rent your property out to them again?
When screening tenants for suitability and checking references your property manager should be experienced enough to sense whether their replies are genuine. This will make this stage of screening invaluable.
For expert advice on all things Melbourne rental property and full service property management, get in touch with the team at your local Brad Teal office.