6 Tips for Finding Good Tenants for Your Investment Property in Ghana

In Ghana, the demand for buy-to-let properties has consistently increased, especially given that rental yields in Accra are averaging between 8% and 11%. Landlords are often faced with the difficulty of choosing quality tenants for their investment properties, given Ghana's sizable rental market.

Even though there’s no way for landlords in Ghana to be absolutely certain that a tenant is going to be the “perfect tenant," there are a few things that can change the narrative to increase the odds, from advertising effectively to conducting tenant screening.

Everything you need to know about how to locate and keep excellent tenants is covered in this article.

6 Tips To Find The Best Tenants In Ghana

Finding quality tenants for your investment property is essential to your success as a landlord. Here are some tips to help you find reliable and responsible tenants:

1. Advertise effectively online.

Advertise your rental property effectively using multiple platforms, such as online rental websites, social media, and local classifieds. Prophunt is one of the places you can advertise your rental property for free without facing difficulties. With Prophunt, you are assured of getting the best tenants. However, make sure to highlight the benefits of your property, such as its location, amenities, and proximity to public transportation. 

1. Use a comparative market price for the listing.

Some landlords have the luxury of calling out rents that are way higher than the market rent. If you are thinking of maximizing your investment property returns by charging high rent, you're likely not to have tenants knocking on the door. Good tenants always have knowledge of the market and will not hesitate to walk away from the property after seeing the listing.

By using comparative market analysis (CMA) to determine a fair rental price for your property, you can attract good tenants who are willing to pay the rent and stay for a longer period of time. 

Here's how you can use a CMA to help you list your property:

1. Conduct research on rental rates for similar properties in your area. Look for properties that are similar in size, location, and amenities to your property.
2. Once you have gathered enough information, calculate the average rental rate for comparable properties in your area. This can help you establish a baseline for the rental price of your property.
3. If your property has unique features or amenities that set it apart from comparable properties, such as a larger living room or a newly renovated kitchen, you may be able to charge a higher rent.
4. Consider pricing your rental property slightly below the average rental rate for comparable properties. This can attract more potential tenants and give you a competitive edge in the rental market.
5. Keep in mind that rental rates can fluctuate based on market conditions, such as changes in demand or supply. Keep an eye on market trends and adjust your rental rate accordingly.

3. Set clear expectations for tenants

In the lease agreement, spell out exactly what you want from the tenant, such as prompt rent payment, adherence to pet and smoking bans, and upkeep duties. The landlord-tenant relationship will be successful if this helps to prevent misunderstandings.

Here are some steps to help you set clear expectations:

1. Write a comprehensive lease agreement to include all the terms and conditions of the rental agreement, such as the rental amount, security deposit, late fees, maintenance responsibilities, and other rules and regulations.
2. Review the lease agreement with the tenant to ensure that they understand all the terms and conditions. Answer any questions they may have, and make sure they sign the lease agreement.
3. Provide a move-in checklist, which lists all the items that are provided with the rental property, such as appliances, keys, and parking spaces. This can help the tenant avoid any misunderstandings.
4. Set expectations for maintenance and repairs, such as regular cleaning and upkeep, and report any maintenance or repair issues promptly.
5. Specify your rent payment expectations, such as the due date, accepted payment methods, and any late fees or penalties for late payments.

Read Also: 5 Important Keys To Managing Your Rental Property Yourself in Ghana

4. Make sure all major repairs are done.

Ensuring that all major repairs are completed before renting out your property can attract good tenants who are willing to pay a fair rental price and stay for a longer period. Here are some ways to get good tenants by making sure all major repairs are done:

1. Before renting out your property, conduct a thorough inspection to identify any major repairs that need to be completed.
2. Hire licensed and insured contractors to complete any major repairs, as they have the expertise and experience to ensure that the repairs are done correctly and up to code.
3. Document all repairs completed, including the date, type of repair, and the contractor who completed the work. This can serve as proof that the repairs were completed and can help attract good tenants.
4. Update your rental listing to highlight any major repairs that have been completed, such as updated kitchen appliances. This can help attract tenants who are interested in a property with a nice kitchen.
5. Provide regular maintenance for your rental property, such as cleaning gutters, changing air filters, and inspecting plumbing and electrical systems. This can help prevent future maintenance issues and ensure that your property remains in good condition.

5. Screen your applicants

Before accepting any tenant, make sure to thoroughly screen them by conducting a background check, credit check, and checking their references. This can help you identify any potential red flags, such as a history of late rent payments or criminal activity.

Here are some ways screening applicants can help you get good tenants:

1. By verifying a tenant's employment and income, you can ensure that they have a stable income and can afford to pay the rent. This can help reduce the risk of rent payment issues and eviction.
2. Checking a tenant's rental history can provide insight into their past behavior as a tenant, such as their ability to pay rent on time, keep the rental property clean and well-maintained, and follow lease terms and conditions.
3. Conducting a credit check can help you assess a tenant's financial responsibility and reliability. A good credit score indicates that the tenant is likely to pay rent on time and take care of the rental property.
4. Checking a tenant's criminal history can provide insight into their character and potential risks to your rental property or other tenants. A history of violent or criminal behavior may indicate a higher risk of eviction or damage to the rental property.
5. Good communication skills are essential for a positive landlord-tenant relationship. By evaluating a tenant's communication skills during the screening process, you can ensure that they are responsible, respectful, and reliable.

6. Offer incentives to tenants 

Consider offering incentives such as reduced rent for long-term leases, referral bonuses, or upgrades to the property. This can attract more tenants and encourage them to stay for a longer period. You should know that reducing your rent to get applicants will always be better for you than extending vacancies.

Here are some ways that offering incentives can help you get good tenants:

1. Offering a rent discount or a reduced security deposit can be an attractive incentive for tenants, especially those who are looking to save money on their monthly expenses.
2. Offering flexible lease terms, such as a shorter or longer lease, can help attract tenants who have unique housing needs or preferences.
3. Offering upgrades or improvements to the rental property, such as new appliances or a fresh coat of paint, can make the property more appealing to potential tenants.
4. Offering amenities, such as on-site laundry or a fitness center, can be a great incentive for tenants who are looking for convenience and comfort.

7. Communicate effectively

Maintain open and effective communication with your tenants, and respond promptly to any questions or concerns they may have. This can help build a good relationship with them and encourage them to take care of the property.

Here are some ways that communicating effectively can help you get good tenants:

1. Communicating clear expectations with your tenants can help reduce misunderstandings and disputes in the future. 
2. Responding to inquiries and requests from potential and current tenants in a timely manner shows that you are responsible and attentive as a landlord. This can help build trust and establish a positive landlord-tenant relationship.
3. Regular communication with your tenants can help build a strong relationship and create a sense of community in your rental property. Y
4. Maintaining a respectful tone in all communication with tenants, whether in person or in writing, is important to building a positive relationship. 

Read Also: Top 10 Tips for Finding Good Investment Properties in Ghana

Conclusion 

Rental homes are in high demand all around the nation. It may not be difficult to locate applicants for tenants, but it is crucial for landlords to take the time to identify quality tenants in order to prevent issues in the future. By following these tips, you can increase your chances of finding good tenants who will pay rent on time, take care of your property, and stay for a longer period of time.