A tenant can make or break a landlord’s experience of owning a rental property, according…
By Mark Hamblyn, Terri Scheer Distribution Manager
A national rental market of high demand and limited supply has created a greater pool of prospective tenants for landlords and property managers to choose from when it comes to renting out a property.
However, the increased volume of applications doesn’t necessarily make it easier to determine who will be a good tenant.
Achieving the best outcome still requires that property managers and landlords pay close attention to several key areas in order to maximise the performance of their assets.
Current market dynamics do not diminish the importance of property presentation and due diligence to ensure the best possible tenant is selected and retained.
And with the rising cost of living impacting more Australians, a buoyant rental market is no guarantee against potential financial hardships for tenants or landlords down the track.
Property presentation still matters
Tenants are more likely to take pride in a well-maintained property and treat it as if it were their own, so even in a market of high rental demand it is still imperative that properties are presented at their best to attract high-quality tenants.
Encouraging landlords to undertake simple renovations or maintenance will go a long way in attracting and retaining good tenants, and encouraging them to take great care of the property.
Due diligence is even more important
With a larger number of potential tenants applying for properties, it’s even more important to be thorough in the selection process. Conducting all the necessary background checks, from tenancy history and rental references to sighting evidence of income, can help provide a clearer picture of the stand-out prospects.
While rent-to-income ratio and credit scores are important, property managers know that not every tenant will have a perfect score. Property managers play a crucial role in assisting their landlords to take many factors into account and make an informed decision on the most suitable tenant for their property.
The advantages of retaining a good tenant are as strong as ever. Property managers know that maintaining a positive and respectful relationship between landlords and tenants is the key to cooperation throughout a lease agreement and beyond.
This is particularly important should a tenant fall on hard financial times as a strong relationship creates opportunities for open dialogue. However, property managers should ensure landlords are aware of the need to meet tenancy and insurance obligations, which includes serving notices on time, should rent payments be late or missed.
Seek protection as financial pressures mount
The rising cost of living is impacting all areas of the economy and the rental market is not immune. This is placing additional financial pressure on many tenants which increases the risk of rent arrears.
Unfortunately, even the best tenant can accidentally damage a property or fall behind in their rent.
Landlords should choose a policy that provides cover against damage and loss of rental income.
An insurance policy that covers these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.
Property managers should check their authority to distribute or refer before dealing in insurance.
A distributor is able to deal in insurance on behalf of their property owner. This enables the distributor to speak with the insurer, place cover, amend cover and cancel a policy. Property management businesses can become distributors with Terri Scheer.
For property managers who are not distributors they can still inform their property owner of the existence of landlord insurance in the form of a brochure. The property owner must complete and sign the application form and send it directly to us by email. Alternatively, they can apply online through the Terri Scheer website.
For further information, call 1800 804 016.
Insurance issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Terri Scheer. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy. The Target Market Determination is also available.
The information is intended to be of a general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. This article has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.