Paul Wrigley from Ray White Property Management Toronto believes choosing the best tenant for your property is paramount. There is a huge demand from tenants waiting for properties so we have a large number of application s to sort through to find the best tenant.
To ascertain the tenant’s ability to pay the rent we look at the house- hold’s net income. The general rule of affordability is the 30/70% rule. If the income is $1000 per week the tenant/s should be able to afford $300pw in rent.
This is important to review to determine the tenant’s ability to maintain the rent. If we receive multiple applications we would choose tenants who have secure employment (full-time) and who have been with the employer long-term compared to multiple 2-3 month positions.
The best way to ensure the tenant will maintain the property is by checking previous rental references and whether they received a full bond refund at the end of the tenancy. When accompanying tenants to the initial inspection we also try and meet or say goodbye to the tenant at their car so that we can see how they are caring for their car. Generally the way a tenant cares for their car will be a reflection on their housekeeping.
Good long-term tenants are ideal. It will reduce the costs of tenancy turnovers (i.e. additional letting costs and advertising) and it will reduce the amount of wear and tear on the property. We want to where possible avoid tenants moving in and out every six months. A tenant who has a previous record of tenancy of 2-4 years will be better than several six-month renting periods.
There are pros and cons to accepting pets. It can attract more tenant enquiries and a little higher rent. However, the downside is that there is a greater risk of wear and tear on the property.
It is important that we ensure that the tenant is going to work with us during the tenancy to make the management of the property as easy as possible. We have strategic interviewing techniques to determine what type of tenant they will be.
The number of people will have a direct impact on the wear and tear of a property. If we have multiple applications we do take this into consideration.
Written by the PPM Group – www.ppmsystem.com
As you can see a property manager needs to be very thorough in sorting through applications. At Ray White Property Management Toronto our team is very committed to choosing the best tenant for every investment property we manage.