Your property-type will dictate your tenant: Terri Scheer Insurance

If you ask an investor what type of tenant they would like many will say something like “a young professional” or "a quiet family", but do they have the right property to attract this type of renter?

Terri Scheer Insurance, at their Australian Landlords Panel 2012, noted that thinking about the resident you would like in your investment property is crucial prior to purchase.

Insurance executive manager at Terri Scheer Insurance, Carolyn Majda, said that the tenant can “make or break” a landlord’s experience and so should be considered ahead of time.

Thinking about the demographic of a tenant and what will appeal to them is crucial.

"For example, if you would prefer a student to rent your property, you may consider looking for an apartment or unit close to a university and public transport,” said Majda.

The panel found that 57% of standalone house rentals are tenanted by families with children, while 47% of apartments and units are tenanted by young couples and 37% by singles.

It’s also worth remembering that the quality of your property, and its state when photographed for a listing and when presented for an open home, will also help to attract the right tenant. Properties that are poorly maintained are more likely to attract a less than desirable tenant.

Cameron McEvoy previously wrote that there are several important characteristics of a tenant:

-       Longevity/stability of employment (at least four years in their job)
-       Request longer-term leases
-       Have been in a previous rental for at least two years

Choosing an area that is attractive to the type of tenant you are looking for is also important - it will be difficult to find a young couple in an expensive, family-orientated area, particularly if you have purchased a large property.

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