When purchasing a rental property the potential for capital gain is always front of mind. Capital gains however are not normally realised until many, many years after the purchase date. In the meantime you must service that loan and ensure your investment is protected into the future.
While we wait for capital growth to soar on our investment property, maintaining a low vacancy rate is not only appealing, but essential. Attracting the right tenants to your property is critical and can avoid the financial and emotional pain of dealing with ever changing tenants, difficult tenants, or, the dreaded “tenants from hell”!
When investing in residential property it is important to look at things through the eyes of your future tenant. What will attract a good tenant to your property and how do you ensure they stay, long term? Never forget that your investment property is your tenant’s home and attracting a house-proud tenant will always pay dividends.
Good tenants are attracted to specific qualities:
- A good tenant will be attracted to a property surrounded by nice houses with good, quiet neighbours
- Is the neighbourhood safe and secure? If the local area showcases the work of graffiti artists and vandals, is this likely to be attractive to good tenants
- Is there access to public transport and shops?
- Is the property in a built up area and if so, does your property provide access to secure off street parking?
- Families will be interested in local schools, what are they like, are they close by and do they have good academic status?
- Young people may prefer the café and cinema scene or access to recreational facilities such as gyms, pools, local sport fields and clubs?
- Is the property pet friendly and have a backyard for the kids?
- Entertaining areas such as an outdoor BBQ in a private covered patio or balcony are always attractive as is a modern kitchen, bathroom and open house plan.
Above are just a few things to consider when purchasing an investment property. Once you have attracted good tenants it is essential you keep them and this is where you, as a landlord must shine.
If you are thinking of buying an investment property, contact us today on +61 2 9476 0000. If you already have an investment property and would like to receive a free market appraisal of the current market value of your property, contact us today on +61 2 9980 6777.
Source: This article originally appeared here.