Attracting good tenants can seem a daunting process however there are a number of steps that can be followed to ensure you attract a better tenant and have fewer vacant days on the market.
Firstly, remember that a positive first impression can be the difference between securing a good tenant and the property remaining vacant. Spending a little time before marketing your property to ensure it is tidy and presents well puts you in good stead to secure good and responsible tenants.
Over the lifetime of your investment property, there are almost certainly going to be times when you will need to give your property a bit of a ‘facelift’. It’s not unlike the home you live in. Wear and tear naturally occurs over time, which is why many of us do the annual ‘spring clean’ and paint every few years.
Many investors shy away from refurbishing their property thinking the money spent will not be recouped. The truth is, a refurbished and well-presented property not only attracts good tenants but also produces a greater likelihood of obtaining a higher rent with a reduced vacancy period. A poorly presented property on the other hand will only attract a tenant of the same calibre.
As a property investor, it is important that you budget and create a sinking fund to cover expenses that will occur during the lifetime of your property. On average an investment property will need to be updated every 4 to 6 years. Things to budget for over this timeframe include:
- Replacement of hot water system
- Replacement of white goods such as stove, clothes dryer, dishwasher
- Internal and external painting
- Replacement of floor coverings and window coverings
It should be noted that expenses incurred in making your property attractive to tenants are tax deductible.
Remember, a property that is well presented will attract good tenants who will care for the property and more than likely be long-term occupiers. Over time this reduces vacancy periods and lost rental income and improves your property’s capital gain potential.