How to Find the Right Tenants – Expert Tips from Property Managers

As a property owner, tenant selection is perhaps one of the most important decisions you can make. Whether you’ve just purchased the property or the current tenancy agreement has reached its end, it is important that you don’t move too quickly and end up rushing this critical step.

Putting a rental property on the market is already a major decision, but it doesn’t have to be hard or arduous. A comfortable and pleasant landlord-tenant relationship is the best path forward for both parties. This process also reduces the chance of financial, maintenance, and logistical issues moving forward.

As property managers on the Sunshine Coast, we have compiled some expert tips and tricks to secure the perfect tenants for your property.

Key Points to Verify

After your property is on the market and the inspections have taken place, prospective tenants are required to submit a formal application for the lease. Luckily, digital forms are commonplace and require each applicant to fill out a variety of different sections and include information in the areas listed below.

If you want responsible tenants who offer a smooth and non problematic lease, here are a few of the basics to form the basis of your search.

• Basic Details: This section is straightforward. Here, all applicants fill out their basic details, including their full names and contact details. All applications must include this core information.
• Identity Documents: The applicants must then provide evidence to verify their identity. Typically, this involves both primary and secondary documentation that proves who they are.
• Employment and Income: It is very important that the applicant is able to pay the monthly rent. Verifying their employment status and income gives you a clear snapshot of their financial standing. Secure long-term employment, for example, is a green light that generally correlates to more reliable rental payments. Of course, this will be a combined income when there are two or more applicants.
• Rental History: How can you gauge whether an individual, a couple, roommates, or family will be good tenants? Checking their rental history is a fundamental part of the screening process. Applicants with a positive rental history represent a low risk, particularly if they have demonstrated a track record of being able to pay rent on time, as well as a history with landlords that have no negative notes to add.
• Checking References: Both professional and personal references are another great way to gauge the personality and reliability of potential tenants. In the very same vein as job applications, referees can be contacted to give feedback on their colleagues/friends. These days, this process is often completed and submitted via an online form. Referees may also include previous property managers or landlords.
• Vehicles & Pets: In some cases, pets may be a deal breaker. In this instance, the landlord must provide a reasonable clause that outlines why the pets are not allowed. These can include an additional pet exceeding the number of animals allowed on a property, lack of proper fencing, high risk of damage to the property and more. However, many landlords are more than happy to allow their tenants to bring pets along when they move. In this case, the tenant must disclose any existing pets, allowing you to decide whether these animals will suit your space.Another detail included on many rental applications is the vehicle/vehicles that the renters will be parking on or near the property. Here, the application will include the make, model, and registration (licence plate number) for each.Need help to find the right tenants? We are a dedicated team of property managers on the Sunshine Coast. Contact us today to learn more about our services.

The Role of Property Managers

While the property manager will have already played a role up to this point, their primary duties really begin with the tenant selection process. Of course, sometimes the individual who attends the open inspections is not the same person as the one who will be managing the property moving forward.

With that in mind, let’s do a quick dive into the fundamental duties and responsibilities of a property manager during tenant selection.

Assessing Applicants

Hopefully, your open inspections and listing will have attracted some quality applications and potential tenants. From here, the property manager’s role is to review each application carefully, checking references, income, and various other aspects. Next, they will weed out non-compatible applicants and make a list of the very best.

Presenting Approved Applicants to the Landlord

Once all the applications are assessed, those that meet the criteria and make a good impression on the property manager will be presented to the landlord. Hopefully, this will include one or two applicants who really stand out and present themselves as strong candidates for the lease.

After this point, the landlord’s role is to choose their preferred option from those presented by the property manager. Ideally, the property manager’s tenant selection process is well thought out and carefully considered. This attention to detail will ultimately make the landlord’s decision much easier.

Communicating with Applicants

As regulated by legislation, the process for finalising a residential lease must involve a range of documentation and contracts. Here, the applicants are not yet committed until they review, agree, and sign the rental agreement. This agreement must be overseen by the property manager and signed by both parties before the lease is finalised.

If the agreement is signed, the property manager will also coordinate the collection of the keys, as well as complete a condition report and send it to the successful applicants.

Benefits of a Careful Selection Process

After years in the rental industry, we’ve seen firsthand just how important tenant selection is. Here’s a few of the key benefits:

• Reliability: A meticulous tenant selection process ultimately improves the overall reliability of the chosen applicants. By thoroughly assessing their financial stability, rental history, and references, landlords can have greater confidence in the reliability of tenants to meet their rent obligations, pay on time, and care for the property responsibly. This results in a more stable and predictable rental income for the landlord, and contributes to better long-term financial security.
• Security: By scrutinising applicants’ backgrounds, property managers can identify potential risks and ensure that those with a history of financial instability or problematic tenancies are not selected. This proactive approach helps to safeguard the property from potential damage and minimises the likelihood of disputes.
• Less Time and Effort: Investing extra time and effort into tenant selection isn’t something that you are likely to regret. Both in the short and long term, this process pays off by reducing the likelihood of tenancy issues that may require extensive time and effort to resolve. Selecting reliable and responsible tenants from the outset minimises the need for frequent property inspections, dispute resolution, and turnover of tenants.This streamlined approach also saves both landlords’ and property managers’ valuable time, which allows them to focus on other aspects of property management.
• Peace of Mind: A carefully executed tenant selection process ultimately brings peace of mind to landlords. Knowing that thorough assessments have been made, and reliable tenants have been chosen, landlords can enjoy a sense of security and confidence in their rental investment. This peace of mind extends beyond financial considerations to encompass the overall well-being of the property and its long-term prospects, fostering a positive landlord-tenant relationship.
• Long Term Stability: Changing tenants can be a long, time-consuming, and arduous process. If you are a landlord who prefers long-term stability and security, selecting the right tenants offers exactly what you’re after. Of course, tenants may decide to move on from the property due to other factors. However, there are many cases where landlords and tenants both enjoy a long-term relationship with minor issues or problems.

Work with a Property Management Company on the Sunshine Coast

At We Do Property, tenant selection is our specialty. We love to connect people with places and help landlords to secure responsible tenants that offer a smooth and stress free lease. If you own a property in or near the Sunshine Coast, we are more than happy to help you out.

Need property managers in Caloundra, Buderim, Palmwoods? Contact the We Do Property team now for an all-inclusive experience.