Selecting the right tenant for your investment property can be tough, especially when you want to get someone in there and paying rent as soon as possible. Here are five warning signs to look out for when selecting the right tenant to lease your property:
- Quick to find faults
If you have someone points out every minor defect they can find despite the unit or house being near perfect and submits an application anyway, you should be wary. You could find yourself constantly sorting our repairs and spending unnecessary money to keep them happy.
- Lack of supporting documents or references
If an applicant applies to rent your property but does not provide any supporting documents or references, there is usually a reason why and you should proceed with caution. When you specifically request this information and they still cannot produce anything, it’s probably safer to simply select another applicant.
- Always in arrears
Rent should always be paid on time. An applicant who is constantly late with rent or who still owes money to their previous landlord will always be this way should probably be avoided. One of the most common excuses applicants make for being behind in payments is that their previous agent didn’t organise repairs on time. Even if this may be true, it’s safer to avoid renters with a history of being behind in their rent.
- Constantly on the move
If an applicant has moved properties every six months for the past three years and cites their desire for a lifestyle change as the reason, you can be fairly confident you will be looking for a new tenant six months down the track if you proceed. You might also find they weren’t looking for a lifestyle change, but were asked to leave their previous rental properties.
- Poorly presented
Just like a job interview, applicants should always make an effort to look well-presented when they inspect a property and/or meet the owner. This shows they’re taking their application seriously and it’s generally a good indication that they will respect your property. If an applicant has unruly hair, and is wearing slippers and a dirty shirt, their living standards might not align with yours.
Beware of these five warning signs above and you’ll avoid making bad decisions and screen out the bad tenants quickly.