29 May 2016

Finding the Right Tenant

Tenants are the bread and butter of property investments.

They’re the glue that marries the property to its potential income and, without that glue, the property is doomed to become a liability. That’s why landlords, as well as tenants, need to go out of their way to do the best they can.

A good landlord and a bad tenant, and a bad landlord and a good tenant, are marriages bound to lead to divorce – and not an amicable one at that. If landlords want to maximise their income potential, they need to invest the time such that finding the right tenant is easy.

Is the property up to scratch?

But, is the property up to scratch in the first place?

Think about it – would long-term, quality tenants want to rent a property that needn’t meet their high expectations? Quite evidently not, or – at minimum – only a minority of potential renters are being reached.

The property should first be well-maintained. It should look and smell like a place that someone – including the landlord – would be happy to inhabit. First impressions count, and landlords need to ensure that their property exceeds renter’s expectations.

Does the asking price for rent match the quality and location of the property? This, too, is something that good tenants consider. Rent should be optimised in a way that isn’t too low to discourage income loss, but isn’t too high to discourage well-informed tenants.

The point is this – that landlords should put themselves in the shoes of prospective tenants, and try to understand what a good tenant would want, and what they expect to see. Landlords need to tick these boxes, or good tenants will only seek other properties.

Finding the right tenant

Finding the right tenant isn’t always easy.

It requires a lot of time and effort, but this is well invested time and effort if you secure a quality, long-term tenant that supplies a consistent income stream. Failure to invest this time only results in higher vacancy turnover rates and, as a result, long-term loss of income.

Finding the right tenant means screening each and every tenant.

It means undergoing background checks, checking their income stream (such as employment), and procuring legitimate references. It’s only through this type of effort that quality tenants can be filtered from less desirable applicants.

Don’t have the time?

This is more common than you might think. That’s why investors turn to Las Vegas property management – firms that offer full-service property management to deal with every conceivable avenue to find the best possible tenants.

Final Thoughts

Tenants are the bread and butter of property investments. Ignoring the value of quality tenants does a disservice to the value of your investment. True – finding the right tenant can be time-consuming and, to some extent, quite demanding. But it’s only through finding quality tenants that the property’s income stream is maximized and consistent.

If you’d like to learn more about what Las Vegas property management can do for your investment, check out this page for more information.

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