Purchasing a property is often only half the challenge of being a property investor. Finding the right tenant(s) to rent your property is often essential if you really want to enjoy your purchase.
We have all read recent horror stories such as Tenant leaves landlord trash pile or the Tenant who set a home ablaze after struggling with rent. While you can never be sure whether your tenant is going to work out, there are certain things you can do to limit the chance of trouble, such as researching rental history or seeking a character reference.
With vacancy rates tightening in the majority of Australia’s state capitals, tenants are increasingly desperate to secure decent properties.
Perth’s vacancy rate is at a remarkable low of 0.5% having fallen consistently since 2007. Darwin (0.6%) and Canberra (0.8%) also recorded vacancy rates of less than 1%, while Adelaide (1.4%), Sydney (1.5%) and Brisbane (1.5%) remain below the 2% mark.*
The low vacancy rates make it a great time to be a landlord; but with the multitude of applications come an increased importance to pick the right tenant.
Matthew purchased his second home in Sydney’s West in January and instead of selling his first property decided to hold on to it as an investment.
“We wanted to upgrade but it was our first home which we were quite fond of, so we kept the unit as an investment property.”
He says using a Property Manager made a confusing process a lot more painless.
“We were a bit overwhelmed with all the interest in the place, but our Property Manager looked after everything. He collected references and shortlisted tenants for us to choose from.”
“Within a week we had settled on someone that advised us they had a “clean” history and steady income. This offered us peace of mind and we couldn’t have been happier.”