How to find a great tenant for your rental property
Category Property Advice
Buying a property to let it out - or letting out a property or granny flat that you already own - can be a great way of supplementing your income. However, this relies on finding a top-quality tenant to live in your property. The CSi Property Group takes a deep dive into how to find the right tenant.
Finding a tenant on your own
Finding a tenant who you can trust to pay their rent on time every month and to look after your property as if it were their own can be a tricky task. Ways to find a tenant include spreading the news among your friends and family members that you have a property available to let, or making use of online classifieds like Facebook and Gumtree. Both of these methods have their potential pitfalls. If you rent your property to a friend - or a friend or relative of a friend - you stand to lose a friendship if the rental deal should happen to go sour. If you find a tenant on social media, it's difficult to be sure whether or not they will pay timeously and look after your property.
If you choose to find your tenant on your own, there's some work to be done. It's very
important that you screen your prospective tenant thoroughly. Documents that you should ask any prospective tenant for include the following:
- A certified copy of their ID book
- Written references from previous landlords
- A credit check
- Three months' bank statements and salary slips
Unfortunately, the instances of people providing false documents are on the rise. You'll therefore need to conduct checks like contacting your would-be tenant's employer to ensure that they really work there. You'll also need to verify the written references provided by your would-be tenant's previous landlords.
Once you've found a prospective tenant who seems to check all the boxes, you'll need to interview them. This can either take place on neutral territory or be done at your property at the same time as they take a look to see if they like it. Make sure that the person is someone with whom you feel comfortable entrusting your asset. In the age of social media, another important step is to look up your prospective tenant on networks like Facebook and Instagram. While their privacy settings may be high, you may be able to glean some extra information about the person who may soon be living on your property.
Ultimately, you'll need to follow your gut when looking for the right tenant. If somebody looks perfect on paper but just doesn't seem right to you, then follow your instincts.
Finding a tenant through a real estate agency
While having a property practitioner find you a tenant will mean paying them a commission, it can save a lot of hassle and heartache. It will be your property practitioner's job to bring you a list of vetted and suitable applicants. One of the many advantages of using a rental agency is that they have access to a large pool of potential tenants and may be able to find you a suitable tenant more quickly than you'd be able to find one on your own. Using a rental agent means that you don't have to manage negotiations with the would-be tenant. In a nutshell, you have a middleman working between you and the prospective tenant to ensure that everything runs smoothly.
The advantages of using a rental agency don't end the day your new tenant moves in. Your rental agent will handle rental collections and will be the one to follow up on any outstanding payments.
Another big advantage of having a property practitioner on your team lies in the complexity of the Rental Housing Act and other applicable legislation. Working with someone with advanced knowledge and experience in the rental housing market will ensure that you are always on the right side of the law. Over and above this, if you have a tenant who becomes difficult, you will have the help you need to manage the eviction process.
While it's up to every landlord to choose whether or not to use a property practitioner's services, it is clear that there are many advantages to having an expert's help. For more information or assistance in finding the right tenant for your property in Gauteng, Limpopo or Mpumalanga, contact the CSi Property Group today.
Author: CSi Property Group