5 Actions To Secure Quality Tenants - FAST!

Josh Tonkes

1 July 2020

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5 Actions To Secure Quality Tenants - FAST!

An investment property needs to be run just like a business. That’s essentially what it is. A business. The Landlord is the business owner. As all investors know, an empty property soon burns a hole in your pocket. 

Good tenants who pay their rent on time and respect your property are gold. You should always do everything you can to keep them in your property. However, tenants do move on (even the good ones). The key here is to replace quality with quality. Depending on the property type, location & the state of the rental market it can take a varying amount of time to secure a new tenant. 

The most important thing we advise Landlords is to view the weekly rent in 6 or 12 month timeframes. Too many Landlords get fixated on the weekly rent (not the total rent income over 26/52 weeks). Let’s look at the numbers so you can see what I mean.
Let’s say that a Landlord is hoping to achieve $500 per week in rent. But, that $500 target might be just a tad overpriced & might take 4 weeks to find a tenant. 
Compare that to using a more attractive price ($480 per week) that will generate more interest from potential enquiries & will lead to obtaining a tenant straight away. 

Now let’s look at it over 6 months (26 weeks):
$500 per week x 22 weeks (took 4 weeks to find a tenant) = $11,000
$480 per week x 26 weeks (secure tenant straight away) = $12,480
So you can see that you’re actually $1,480 better off with the ‘lower’ weekly rental price. 

And of course, once you have secured the tenant, the Landlord & agent can discuss adjusting the weekly rent after the initial lease. 
The lessons here are:
1/ Don’t get fixated on the ‘weekly’ rent
2/ Always remember that a more attractively priced property will attract more potential tenants

Here are another 4 tips to assist in securing that quality tenant….
Present a neat & tidy property. This might sound simple but is often overlooked by landlords. If you offer a property that has been shown respect (neat, tidy, cared for) then tenants will respect the property in the same way.
If you offer a property that has been neglected, why would a tenant care for it more than the owner is willing to?

Prior to the existing tenants moving out, discuss with your agent what work needs to be done once they leave. Having this planned out will cut down on lost time. 

Have some money put away in a rainy day fund. This can help you move quickly to get those updates / renovations completed between the two tenants. 

Invest in professional photography. Be honest, most potential tenants will have their first contact with your property online – that’s where they’ll see it first. So make sure that first interaction is a quality one. Simple but effective.

If you have any questions regarding the strategies behind securing a quality tenant fast feel free to give me a call. 
Or if you want to have a chat about the market or anything else real estate related, get in touch.