If you are planning to convert a recently purchased building into a number of self-contained flats, you'll be looking forward to some nice rental income. Yet as you prepare these apartments carefully, you need to pay particular attention to your vetting process to ensure that you only bring in tenants who are likely to be perfect models. What do you need to bear in mind, and how can you make this selection process as easy as possible?
Being Patient
As you know, there's a growing demand for rental units, but potential tenants come in all shapes and sizes. Unfortunately, some are not as well-behaved or predictable as others, and you need to do your best to sort the wheat from the chaff.
Asking Questions
Make sure that you have a comprehensive questionnaire and never shortcut the vetting process. Don't be tempted to give a rental contract to someone simply because they say they are in a hurry or may come with a pocket full of cash for the deposit.
Looking at History
One of the most important things to check is timely payment. You will need to get former landlord references to confirm that they paid on time and cared for the property. A history of missed rental payments may simply continue once they move into your place, which could certainly give you cash flow problems.
Consulting Databases
If you can access a tenancy database, do so. You may find evidence of bad behaviour linked to a particular prospect or stories about property damage that went way beyond fair wear and tear.
Verifying Income
Also, make sure that the tenant has enough income to pay for the property by checking bank statements, payslips or employment contracts. Again, if the rental is likely to represent a sizeable part of their overall income, this could lead to delays or delinquencies, which would come back to bite you.
Checking References
Ask for references and when provided, check them out. These could include a past landlord, an employer or someone who is not related but can nevertheless speak to their trustworthiness or responsible behaviour.
Turning over the Work
Tenant vetting can often be a very tedious affair and may take numerous phone calls and back and forth. This is why many people in your position will employ a property service agency instead. These experts know how to perform this work efficiently and will often help you avoid many of those bigger pitfalls.
For more information, contact a local company like First National Real Estate Penrith.
Moving from New Zealand to Australia is more life-changing that you may think. It never entered my mind that starting over in Australia would present challenges when it came to finding a new place to live. I have filled this blog with informative advice about renting and buying a home in Oz you are a newly arrived immigrant. I want to share information about how to convince rental agencies you are a viable tenant. I also want to share details on what you need to do to make yourself look attractive to a mortgage lender. This advice will help you get on the right path to a new home the moment you step off the plane.