AMA VICDOC Spring 2023 - Magazine - Page 36

FEATURE
PARTNER CONTENT
FINDING KEEPING
THE PERFECT TENANT
-
THE POST-COVID MARKET
Richard Wakelin, founder
Jarrod McCabe, director
W
ith the COVID-19 related hit to the rental
market over the last 12 months, the
importance of securing a reliable tenant
for investment properties has been brought to
the fore. And with the eventual lifting of rental
moratoriums and the reopening of international
borders, landlords will once again have greater
certainty around leases and a larger pool of
tenants to choose from.
Having said that, finding and keeping the
perfect tenant will always be something that
requires a high level of due-diligence, expertise
and management.
The perfect tenant pays the rent on time,
looks after the property as if they owned it,
stays for years and is an early warning system
for problems inside or outside the property.
But perfection is hard to achieve. In the
leasing space, it is dependent on the attitude
and behaviour of the tenant, the investor landlord
and the property manager. And some luck.
The mistake of many investors is a singular
focus on securing a tenant quickly at a top-notch
rent. All too often this becomes the brief for
the property manager responsible for the
leasing process.
Yes, leasing swiftly and negotiating a high rent
are desirable. But these objectives aren’t always
conducive to enticing the perfect tenant who
costs far less over the long-term than the typical
occupant due to low turnover, minimal wear
and tear and shallow demands on the owner’s
scarce time.
The investor who accepts this sustainable
approach must also find a property manager
who understands it as well and is willing and
able to apply it in practise. And that’s a challenge,
because property management is a highly
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competitive price-driven industry. There is
enormous economic pressure on practitioners
to provide a low-cost service.
Nevertheless, there are great property
managers out there, who will be absolutely at one
with an owner’s goal of finding the perfect tenant.
The great property manager’s marketing nous
harvests an impressive choice of prospective
tenants. Thereafter, the great property manager
has the knack of keeping on top of their workload,
responding to tenant concerns and issues speedily
and sensitively, avoiding expensive escalations
whilst faithfully adhering to the routine periodic
inspection and owner-reporting timetable.
If you’re an investor looking for the perfect
tenant, aim to pass two tests. The second of
these tests is to find the great property manager.
Ask friends and associates for recommendations
and interview candidates thoroughly about their
philosophy, and their leasing and management
processes. Always ask for client references and
call to check out assertions.
But the first and most important test is to
try and act like the perfect landlord. Offer a
quality asset, fill it with modern conveniences
and contemporary decorations. Apply a fair
market rent. Don’t deliver nasty surprises: so,
raise the rent modestly each year. Don’t refuse
reasonable tenant requests and respond promptly
and constructively to your property manager.
Before you know it, your perfect behaviour
fashions you that perfect tenant. It’s not just
about luck after all.
REPORT JARROD MCCABE
DIRECTOR, WAKELIN PROPERTY ADVISORY

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