Disclaimer:
This article provides general information only and does not constitute legal advice. When selecting tenants, you must comply with the Human Rights Act and Privacy Act. Discrimination based on race, gender, religion, family status, or other protected characteristics is illegal. Seek legal advice if you are unsure about your obligations.
Key Takeaways
- A well-presented property with good photos and clear descriptions attracts better applicants.
- Price your rental competitively; overpriced properties attract fewer quality tenants.
- Conduct thorough but lawful screening including references, credit checks, and rental history.
- Trust your instincts during viewings and interviews, but document your decision-making process.
- Good tenants stay longer, reducing turnover costs and vacancy periods.
Finding good tenants is one of the most important skills a property investor can develop. The right tenant pays rent on time, looks after your property, communicates well, and stays for years. The wrong tenant can cost you thousands in unpaid rent, damage, and stress.
Quality tenants do not appear by accident. Attracting and selecting them requires a deliberate approach, from how you present your property to how you screen applicants. This guide covers the entire process.
Start with a Quality Property
Good tenants have options. They are actively sought by multiple landlords and can be selective about where they live. To attract them, your property needs to stand out.
Present Your Property Well
Before listing, ensure your property is clean, well-maintained, and ready for viewing. Address any obvious maintenance issues, touch up paint where needed, and ensure gardens are tidy. First impressions matter enormously.
Consider professional photography for your listing. Quality images dramatically increase enquiry rates and set expectations for the type of tenant you are seeking.
Ensure Compliance
Your property must meet Healthy Homes Standards before a new tenancy begins. Quality tenants are aware of their rights and will look for evidence of compliance. Having your Healthy Homes statement ready demonstrates professionalism.
Related: Healthy Homes Standards for Landlords
Price Competitively
Overpricing your rental is one of the fastest ways to end up with limited applicants and pressure to accept whoever applies. Research comparable rentals in your area and price accordingly.
Pricing Research Tips:
- Check Trade Me Property and realestate.co.nz for similar listings
- Look at properties that have been listed for weeks; they may be overpriced
- Ask property managers what similar properties are achieving
- Consider the total package: a slightly lower rent with a great tenant often beats a higher rent with problems
Related: How to Price Your Rental Competitively
Write Effective Listings
Your listing is your first opportunity to attract good tenants and filter out poor matches. Be specific and honest about what you are offering.
Effective Listing Elements:
- Clear, well-lit photos of all main rooms and outdoor areas
- Accurate description of bedrooms, bathrooms, parking, and features
- Honest information about heating, insulation, and Healthy Homes compliance
- Location details: proximity to schools, transport, shops
- Pet policy stated clearly to avoid wasted viewings
- Application process explained
Avoid generic phrases like "must see" or "will not last". Be specific about what makes your property appealing and who it would suit.
Conduct Viewings Effectively
Viewings are a two-way assessment. While applicants are evaluating your property, you are evaluating them. Pay attention to how they present themselves, the questions they ask, and their punctuality.
Open Homes vs Private Viewings
Open homes can be efficient when you have many enquiries, allowing you to meet multiple applicants at once. However, private viewings give you more time with each applicant and can help build rapport.
Many landlords use a combination: an open home initially, followed by private viewings with shortlisted applicants.
Questions to Ask
During viewings, have a conversation with potential tenants. Ask about their current situation, why they are moving, their work or study, and how long they anticipate staying. Listen not just to their answers but how they communicate.
Remember that you cannot ask about protected characteristics under the Human Rights Act. Focus on their ability to meet the tenancy requirements, not personal circumstances.
Application and Screening Process
Have a formal application process. This demonstrates professionalism and ensures you collect the information needed to make an informed decision.
What to Request
Standard Application Information:
- Photo identification
- Current and previous addresses (last 3-5 years)
- Current landlord or property manager contact details
- Employment details and income verification
- Personal references (not family members)
- Permission to conduct a credit check
Related: Tenant Screening: What to Check and Verify
Reference Checks
Always contact previous landlords. Ask specific questions: Did the tenant pay rent on time? Did they keep the property clean and tidy? Were there any issues? Would you rent to them again?
Be aware that some tenants may provide friends posing as landlords. Verify the reference is legitimate by cross-referencing with property records or asking detailed questions only a real landlord would know.
Credit Checks
Credit checks can reveal defaults, judgments, and bankruptcy. They are useful but not infallible; someone can have poor credit due to circumstances beyond their control. Consider the full picture, not just the credit score.
Making Your Decision
Once you have gathered all the information, trust your judgment. If something feels off, it is okay to keep looking. A few extra days finding the right tenant is better than years of problems with the wrong one.
Document your decision-making process objectively. If someone later claims discrimination, you want to be able to show that your decision was based on legitimate tenancy factors like references, credit history, and income verification.
Retention: Keeping Good Tenants
Finding good tenants is only half the battle; keeping them is equally important. Responsive maintenance, reasonable rent reviews, and respectful communication encourage good tenants to stay.
Long-term tenants reduce your vacancy and turnover costs dramatically. Invest in the relationship once you have found a quality tenant.
The Bottom Line
Finding good tenants requires effort upfront but pays dividends throughout the tenancy. Present your property well, price it fairly, screen thoroughly, and trust your judgment. The time invested in finding the right tenant will be repaid many times over.
Frequently Asked Questions
Can I refuse a tenant with pets?
Yes, you can specify "no pets" in your listing and reject applicants with pets on that basis. Pet ownership is not a protected characteristic under the Human Rights Act.
How long should the tenant selection process take?
Typically 1-2 weeks from listing to signing. Do not rush the process, but also do not leave good applicants waiting too long as they may find other options.
Should I accept the first applicant?
Not necessarily. Unless they are clearly an excellent fit, it is worth seeing a few applicants to compare. However, do not delay indefinitely; good tenants get snapped up quickly.
Can I charge an application fee?
No, charging application fees or "key money" is prohibited under the Residential Tenancies Act. You can only charge bond (up to 4 weeks rent) and rent in advance (up to 2 weeks) once the tenancy is agreed.
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