3 Qualities of a Dream Tenant

Getting the Right People in Your Investment Property

Have you finally taken the plunge and completed the board game of buying a home? Congratulations! But if you’re buying for investment, there is still the task of finding the right tenant to sign your lease. There are many ways of going about this, from searching through the internet, to asking around your friend groups, all the way to engaging a professional property manager to handle the process for you.

But if you’ve decided to do this yourself, you might be unsure what to look for in a tenant. We have a lot of experience in this area, and so here are three qualities that we think every dream tenant should have.

Cleanliness

It’s next to Godliness, and more importantly, saves you time and stress! A clean tenant is less likely to have mould or mildew build up in your property, won’t have a problem with you when you want to inspect and also makes your inspection process so much easier!

Not to mention, it also reduces the risk of damage or long term wear and tear to your property. This can be hard to gauge solely on personal appearance, however, and might require some past references from landlords before you can be certain.

Timeliness

Timeliness shouldn’t just apply to the rent payments (although that is fairly vital!). When we say get a timely tenant, we mean someone who responds to your emails promptly, is not late to any meetings and generally doesn’t waste your time as a landlord.

Of course, this is a two-way street. Treating your tenants with respect is just as important for building a dream relationship with leaseholders, so make sure to also be timely in your communications with them should they get in touch!

Cash-flow

It’s important to have tenants who can afford to pay the rent. As a landlord, you want to check this out before the lease is signed otherwise you might have a stressful lease period chasing up money. If you have a central city apartment with a high rental price, make sure your tenant is someone on an income that can match!

It’s very important to remember your responsibilities as a landlord, but don’t cut corners when you choose your tenants. Take the time to make sure the people who sign on to live in your property have the right qualities, and you will be sitting pretty for the future.

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Top 6 Tips to Avoid Budget Blow-Outs

Understand the architect’s role. Primarily this involves acting on a client’s behalf to control building quality. It is feasible that an architect could manage the other project consultants involved and also lodge the Development Application and possibly provide services throughout the construction process. It’s important not to confuse the architect’s role with that of a project manager, whose task among others, is to control project time and cost.

Engage a quantity surveyor. They are specialists in estimating the value of building construction costs. Clients should give the architect’s drawings to the quantity surveyor before the Development Application is lodged. The upfront quantity surveyor’s fee of $5000 is a way of ensuring there is not a budget blow-out later on. Further, it is a way of ensuring that clients don’t end up with an approval for something they can’t afford. Clients should take the time to understand what the quantity surveyor has and has not allowed for. These are the variables that will affect the cost later in the process.

Understand the market. Customising building is a lengthy process and could take up to 18 months. If there’s a construction boom going on and commodity prices are on the increase, 18 months could alter the cost of a project by 15 to 20 per cent. If clients don’t act on their development approval for a couple of years, the variations could be even greater. If this happens to be the case, clients should work with their architect to trim the project. Architects will charge for amending the drawings; obviously they have no control over the prevailing market.

Actively engage with the architect. It’s important for clients to explain exactly what they are looking for by talking about as much of their wish list as possible. This will help guide the architect in developing the outcome clients are looking for. Architects are not empowered to provide definitive financial advice, however, they can provide general information on possible cost estimates, based on their experience, during the design process.

Manage expectations. The gap between what clients want and what they can afford to spend, whether constrained by site or circumstance, is their responsibility to manage. The final outcome produced by the architect reflects what their clients have asked for. However, ultimately, clients must take sole responsibility for the cost of their expectations.

Assume nothing. It is critical that clients ask every question that comes to them regardless of how trivial it may appear. In doing so, they build a knowledge bank around their endeavor, which assists them make informed decisions.

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