Finding the right tenant is critical for any long term property investment, but what should landlords look for?

First off, advertise smartly, says Lauren Maltby of Shepstone & Wylie Attorneys.

"Make sure you target the right audience from the outset," she says.

This is done by the way you word your advertisement and the information you provide. Furthermore, ensure the advertisement is specific as to the kind of person you are looking for, for example "to suit professional couple". The advertisement should also be clear on things that you do not want such as "no pets" or "no children".

Maltby advises to have a set of questions listed before people start calling and go through these with them when they phone to see if they are suitable. The sort of questions could include: reasons for moving, what they are looking for, children, pets, do they smoke, their age, contact details, and whether they have references.

Showing prospective tenants your property, is another opportunity to find out more about them, she says. Do they arrive on time, are they smartly dressed, is their car clean and tidy, are they polite and respectful? All these observations are important when choosing the right tenant.

Use this time to let them know how much the rent will be, how much the deposit is and when it is payable, and specific conditions such as number of occupants, parking facilities and any rules the Body Corporate may have in place which will affect the new tenant.

Maltby further advises to do some background checks on the prospective tenant. "Have a credit check done to ensure they are able to afford the rental, and ask them to provide you with referrals so that you can find out what the person is like as a tenant. Should you be letting to a student, always ask for a guarantor."

Once you have decided on a tenant, the next step is to ask them for the deposit as soon as they accept your offer. "This will ensure that the tenant is also serious and you don't end up starting this process all over again because they change their mind."

The very next step is to both sign the lease agreement. This agreement will specify all your specific conditions including the deposit and rental from the outset, thus binding the tenant to these conditions.

"As the landlord you have every right to scrutinise and select your new tenant to suit your requirements, but be careful not to discriminate on any basis such as sex, race or religion," cautions Maltby.

Finally, always remember to keep this selection process and the relationship between you, the landlord, and your tenant totally professional at all times. By following these guidelines you should hopefully find the right tenant to suit your requirements and your investment.

Property24 2008/03/13