Finding the right tenants for your rental property

Many people consider real estate a great investment; find a great deal, buy it and then find wonderful tenants who stay and basically pay the mortgage for you. And with the current state of real estate, now is a great time to take advantage of the wonderful deals available. It all starts with buying an investment property in the right location. And then you can start your search for those terrific long-term tenants. Here are some tips to help you along the way:

As you start your search for the property itself, make sure you work closely with your real estate agent to find an area that is attractive to renters. There is no point in buying that “fantastic steal” if it’s an undesirable location, as you would only have a tough time renting it out in the long run.

Once you’ve bought your investment property, start thinking about who would be the “perfect” renter. This isn’t about income, career or cleaning habits. This means that you take a good look at the home you just bought and brainstorm on who would just love to live there. If you own a two bedroom townhouse in a small, older community then perhaps the townhouse would be perfect for a retired couple.

Or perhaps a professional who values peaceful surroundings would find herself happily at home in the townhouse. Did you pick up a two-story five bedroom home? Then a family with kids may be your best bet. Knowing who will make a nice match for the property may help make your marketing a little more targeted. And getting that tenant who “matches” will mean a longer term tenant. The tenant, who feels out of place, can’t stand the area or doesn’t “fit” the property, will be looking for the next rental as soon as the lease is up.

If the property needs a little facelift, look around and see what you can do. A renter likes to feel like they are walking into a well-kept and cared for home. No one likes to look around and see potential problems down the road. With just a few new pieces, you can make a property look all shiny and new. And renters, especially the good ones, notice things like this.

You can always use a real estate agent who handles rental properties to help you find a tenant. You can also hire a property management company. They can help you find a tenant. But you can also take matters into your own hands. Talk to some of the neighbours – they might know someone who has been looking to live in the area. 

Once you find a prospective renter be pro-active and make sure to check references. A good reference from their last landlord is worth its weight in gold. 

Make sure you, you real estate agent or property manager stays in contact with the tenants and ask them if they’ve encountered any problems or issues. Act immediately when an issue arises. Tenants respect a responsive landlord who stays on top of any problems.