Our Perth property management team handles a lot of investment properties in over 125 Perth suburbs. One of the things any professional property management team does extremely well is avoiding problem tenants. The “wrong” tenants can really impact your headspace if they get behind in rent payments, meanwhile you still have to make your loan payments to keep the bank from knocking on the door. Then, they can trash your property on the way out the door.
So, how do you avoid nightmare tenants? Here are a few ways.
Strictly Business
The only way to consistently prosper in property investment is to treat it like a business. With your tenants, this involves setting clear boundaries between landlord and tenant. They must know that the rules will be followed to a “t” on both sides of the business relationship.
Due Diligence
Find out as much as you can legally find out about your tenants before awarding them the lease. Ask for references pertaining to both employment and previous tenancy. They must fill out a comprehensive application giving you the information you need. As part of their application you should also gain permission to search them on the national tenancy databases, its hard to hide from a bad record.
By the Book, Above the Table
Everything you do must be legal and transparent. If you violate any part of the residential tenancy act, it gives your tenant leverage over you. If you do everything by the book, tenants not only have no leverage to engage in questionable activities themselves, but they will have more respect and be less likely to violate the terms of their tenancy.
Entry and Exit Reports
Make a very thorough written and photographic record of the condition of the home before move-in and after move-out. This now needs to be done in a format acceptable to the department of commerce.
Keep Great Records
Keep records of every transaction and every conversation with your tenants. This protects you later.
Landlord Insurance
Landlord insurance may seem like an unnecessary expense, but if you ever have to claim it even once, it more than makes up for a lifetime of premiums. Many landlords don’t realise that if your property is not managed and in some cases by a licensed real estate agent, the insurer will refuse to pay claims.
Hire Professional Property Management
Instead of doing this all yourself, hire a professional property management team. They are more than worth what you will pay for them. Great property managers do it all for you: from advertising to screening tenants to performing maintenance to collecting rents on time, a great property management team does it all.
And there is no better property management team in Perth or Australia than Investors Edge Real Estate who are now the 2014 national Property Management Company of the year for Leading Property Managers Australia. We work with investment properties only; that is what we do. Call 1300 472 427 today.
Read an article on: “How to Avoid Problems with Tenants“
