Of course it’s impossible to predict the future and see if your Tenant is going to pay in full, on time every month, leave the place spotless when they return keys and treat the place like their own however there are some measures we can take to minimize the risk.
So apart from the routine qualification vetting (income, credit, etc), how can we ensure that your property speaks to your ideal Tenant?:
1 – School/Neighbourhood Quality: A lot of the time it’s tempting to buy an investment property in an up-and-coming neighbourhood and from an appreciation standpoint this is most likely a wise choice however it is also important to note the quality of the neighbourhood and school district for your ideal Tenant.
2 – Upgrades/Finishes: As an investor, the bottom line and profit margins are of course important but what is equally important in a rental property is having the right Tenants. Cutting costs out on finishes will land you mediocre results so best to pay a little bit of a premium for strategic upgrades to attract top quality Tenants.
3- Turn Key: If the home is turn key, move-in ready then your chances of securing an ideal Tenant are much greater. This may sound super simple however investors constantly put their properties up for rent when they are unclean, not painted or even in basic move in ready condition and this should be your standard.
It certainly costs a bit extra to ensure that you’re attracting the right Tenants however if you try to cut the costs on these basics for your investment property I promise you will pay more in the long run.