Once your property is secured and ready to rent out the next step is to find tenants. Tenants, unfortunately they are not all created equal and having good tenants vs bad tenants can make or break a 'Mom and Pop' investor. Selecting the right tenants is important, here are some things to think about when selecting tenants

Find out as much (relevant) information about prospective tenants as you can
Information such as references, bank statements showing regular rent payments, ID (for credit check) and current landlords details can all help you in making your decision about the right tenants for your property,  one way to do this is with a pre-tenancy application form

Interview prospective tenants
Meeting prospective tenants in person in a great idea whenever possible. It will allow you to verify any information you need to and make sure you're 100% happy and comfortable with the people who will be living in your property.

Credit and reference checks
A credit check will cost you a bit of money up front to do but will allow you to see if someone has been in arrears with other providers before, if they have this could sound warning bells about their likelihood of paying rent on time to you. Reference checks with other landlords are invaluable and will shed light on the prospective tenants habits such as paying rent, taking care of the property etc.

The tenancy.govt.nz website has a great Landlord pack with lots of really useful information in it.

If all of the above sounds like more work than you have the time or inclination for another option is to hire a reputable property manager to look after this and other aspects of renting out your property. It will cost you a bit of money (usually a percentage of the rent) but for many people it can be an invaluable service, especially if you are not in the same city as your rental property.

The information contained in this article is of a general nature and should not be taken as advice. It reflects the opinions of the writer only and does not necessarily reflect the opinions of New Zealand Home Loans.