Having Tenants is the life blood of Property
Investment and mitigating the loss of rent is paramount to ensure your
investment performs well.
What are the key steps to minimize the risks of
ending up with difficult tenants?
Screen potential tenants by carefully checking
employment status, family status and checking references and past rental
history.
Check the bad tenants register, Australia’s three largest lists are
managed by TICA, National Tenancy Database and TRA
Make sure aproper tenancy agreement is in place.
Ensure Bond Money is lodged with the Bond Board
(Failure to do so is a Breach and can give tenants leverage)
Perform a comprehensive condition report with
photos and even video for tenant to sign off.
Ensure you have suitable insurance
In case of difficulty with your tenant:
1. Communicate
calmly
2. Retain
records of all communication
3. Issue
Reminders/Warnings in writing and in accordance with the terms of the Agreement
4. Record
damages with photos and detailed descriptions.
5. Get
professional quotes for repairs
6. Educate
yourself about Landlord and Tenant Rights
7. Aim
for amicable outcomes to disputes
8. Try
to avoid any drawn out disputes where the tenant can avoid paying rent
9. Incentivise
your tenant by offering rent relief or Bond Money in the case of drawn out
disputes.
By using a property management tool like
RealRenta.com.au, you can easily stop bad tenants from the start. You can check
the bad tenant databases, they can Screen potential tenants, and they have tenancy
agreements, landlord insurance and more.
RealRenta also tracks the rent and sends out
rent reminders, arrears reminders and even beach notices by email and text
message, all automatically without you have to do anything.
Jason Gwerder
Thursday, 4 February 2016
