Savvy tenant tips - technology, systems and talk

Most of the new breed of savvy tenants are not scammers, just well-informed, according to Queensland property management consultant, Jade Guilmartin.

The internet gives tenants greater power to negotiate because they can compare market rents across many properties and keep tabs on how long a property has been on the market, she says.

However some tenants take deliberate advantage of “the system”, which is why you need landlord protection insurance against poor tenants. These types of tenants know that eviction is a slow and painful process that can sometimes be further held up with strategic postal “failures”, Jade says.

Such tenants know landlords are unlikely to use debt collectors to chase outstanding rent even after achieving an eviction, while some also set up “injuries” to claim on using no-win-no-fee lawyers. But you can safeguard your income and assets against these property scourges by finding a comprehensive landlord insurance policy in Australia.

To help you avoid allowing potential bad tenants to sign your lease, Jade says a combination of new technology and old-fashioned communication can help in selecting good tenants – and managing ones who present difficulties.

Her tips include:

• Google potential tenants and check out their profiles on LinkedIn and Facebook.

• Meet with potential tenants in person if at all possible.

• Be cautious about references from private “landlords”.

• Call personal and work referees, recording their full names, numbers and addresses in case you have trouble contacting the tenant in future.

• Use open questions when asking other property managers for a reference: “How were they as tenants?” rather than “They were good tenants, were they?”

• Check the tenant is not breaking another lease elsewhere, as it could lead to difficulty paying.

• Take your time over the sign-up process, which should take at least 30 minutes, explaining expectations in detail.

• At sign-up discuss benefits to the tenant of maintaining a good landlord relationship, returning the condition report promptly and keeping a clean rental history.

• Send overdue and eviction notices on red paper to make them stand out as important.

• Be alert to the risk of a law suit “set up” if tenants complain of something as being unsafe but refuse to make a written maintenance request.

• Put your landlord first in the queue to be paid by acting promptly to chase arrears; arrears should be dealt with daily not left in a pile for “catching up on”.

• Treat tenants with politeness and respect even if they are late on rent, but do not let excuses delay your “procedure” of getting started on the formal path towards eviction.

• If you’re having trouble contacting tenants, try a Facebook or text message, which is less confronting than a direct call.

• Keep your paperwork perfect.

Our advice about insurance is provided for your general information and does not take into account your individual needs. You should read the Product Disclosure Statement and Policy Wording prior to making a decision, these can be obtained directly from EBM.

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Article supplied by EBM.
Standard home and contents insurance will not protect against many of the risks that landlord’s face. Whether it be loss of rent due to an absconding tenant, malicious or accidental damage, or a whole range of other circumstances including tenant hardship, the RentCover range provides peace-of-mind to property owners like no other policy. And has done for over 20 years.

For more information, or to quote or apply online please visit www.rentcover.com.au.