The number of Australian’s renting is officially on the rise. While this is great news for residential property investors, it’s not the only thing heading north.
In recent years, tenants who are illegally subletting to strangers, especially tourists and holiday-makers has increased at an alarming rate, leaving the property owners exposed to a range of risks and costly consequences.
Would you let a stranger into your house? Accepting tenants without adequately screening applicants is akin to allowing a stranger into your house, and handing over the keys. No doubt, a costly decision in any property owner’s book.
While finding a tenant for your rental property is about marketing your property to the right demographic, securing the right tenant for your investment is about thorough tenant screening and reference checking.
Before you start the journey to find a tenant, you first need a strategy – a marketing strategy.
Like any product new to the market, to find a tenant for your rental property you need to determine what you are offering, who is your ideal customer and how you want to package your offering?
When residential vacancy rates are low (around 1% – 2%), your product is most likely in high demand, but higher vacancy rates (over 3%) signify low rental demand, which means you may need to work harder to attract the right customer.