Bad tenants can be a costly nightmare, property owners can get stuck with massive clean up bills and may never see the back rent owned to them.
So how do you sift out the good from the bad?
According to Terri Scheer Insurance executive manager Carolyn Parrella, attracting the right tenant can make or break a landlord.
She said it was not only important to find the right tenant but to keep them happy also.
“If tenants are happy they may be more likely to pay their rent on time, stay in your property longer and look after it as if it were their own,” she said.
Follow her tips for avoiding dodgy tenants;
• First think about the type of tenant you want to attract.
“When choosing an investment property, think about the tenant demographic you want to attract, for example a family, sole tenant or couple, and choose a property that is likely to appeal to them.
“Properties that are close to good schools, shops and public transport are likely to be well sought after and may give you a larger pool of prospective tenants from which to choose.”
Thoroughly check potential tenants’ references during the screening process.
“Speak with previous landlords or property managers and ask specifically whether they had any
issues with the tenant in the past,” Ms Parrella said.
• Present your property well.
“A property that is poorly presented by the landlord may be poorly cared for by the tenant. No one wants to live in a property that has stained carpets and marked walls.
• Appoint a property manager
“They have experience in screening prospective tenants and have access to databases that list
tenants with a history of defaulting on rental payments, damaging property and eviction.’’
• Attend to maintenance issues promptly.
“A tenant who isn’t getting the attention they deserve might begin to question their commitment to your property and become more careless with it.’’
Plus injury or loss as a result of a safety hazard might result in costly legal claims.
• Landlord insurance
“Even the best tenant can accidentally damage a property or lose their job and be unable to pay rent,” Ms Parrella said.
“Every landlord should have a tailored landlord insurance policy that covers them for both malicious and accidental damage, their legal liability and the loss of rental income.’’
Source: news
