Finding A Rental That Will Attract Quality Tenants
Signature Team • August 6, 2018
How to Find a Rental Property That Will Attract Quality Tenants
When I was 28 I sat in a sales room full of salespeople. One of them said something to me that was not only appealing but made a lot of sense, and I think it applies here. He said, “If you want to catch a big fish, my friend, you have to use big bait”. So how does that apply in this case you say, well, if you want to attract quality tenants, you have to use quality features.
Here are some quality features that will attract quality tenants for your rental
- Schools – Not all quality tenants have children, however, this is one of those items that if they do, you might want to consider. Buying a property near quality schools will attract people who care about what their children’s learning environment is. To these tenants, if the schools in your community aren’t good, then it is if your rental doesn’t exist. Look for a property in an area where the schools and area are desirable. This will increase the eyeballs of good tenants and can increase the longevity of the tenant as people don’t like to change their kid’s schools. If you have a rental in a zone with good schools, advertise it on your listings to ensure good tenants know it.
- Safety – Well this says it all. Good tenants, in all aspects, care about their families and their own safety. It is a great need for humans and can de-motivate someone into looking into your rental if they think the location of the property is not safe. Research the area and crime rate. There are many ways to do it online without having to search to hard. You can also ask your real estate agent. When buying a rental, look for a safe area, and your property may just rent itself.
- The Condition of the Property – People want to move right in and like their surroundings. Sometimes, as landlords, we don’t want to change certain aspects of the property that a past tenant added, or that came with the property in the 90’s, such as wallpaper, and paint, because it looks fine, and it is not broken, so to speak. However, a good tenant can get tired of looking at bookshelf wallpaper or pink paint in their son’s room. Some tenants think in their head at the showing, oh, we will have to ask the landlord to do this or that, but don’t want to confront the landlord, so they just don’t apply, to avoid any confrontation. Make sure the property is in good condition, and a good tenant will want to move right in. They will feel comfortable, and that will help them stay for a long time without any hassle.
- Consider Upgrades – Some landlords want to find an average rental, and trust me when I say this, that in fact, you will just find average tenants. They come and go. But a quality tenant might not look at an average rental. Don’t be afraid to upgrade a rental with hardwood flooring, or tile, covered patio, granite, shower heads, Jacuzzi tub and anything else that would make someone want to stay forever. Think about why anyone would leave if the rental feels like a home.
- Appliances – Tenants have to make some cash flow happen when they rent a house. They have to pay for first month’s rent, deposit, and items for a new house. Having appliances such as a refrigerator, washer, and dryer could help a good tenant want to rent your property, as it puts their cash flow at ease. It just makes things a little easier when they decide on which rental to accept.
- Neighborhood access – How close is the store, cleaners, movies, shopping, food and other places a tenant or any person would want. Some websites include a walk score to show how close some of these items are to a property. Even a close freeway to get to work. You would be surprised how many times a tenant has turned down a place because it’s off the beaten path, and a little too far away from these things. We have a community up the freeway a little bit, but during certain times of the day, the traffic is horrible. Tenants turn this area down, even though without traffic its only 10-15 minutes out of the city.
- Rent – always look at comparable properties (COMPS) and set your rent so that with all the items above, there is no way a good tenant is leaving. We are not looking to charge a higher rent than our comps just because you have granite counters. Having a slightly higher rent might not be bad, but too high and you will burn through tenants as they realize it might not be worth it.
- Age of the Property – Watch out for properties that too old. HVAC, electrical and other aspects of the home are old too. It could cost you some cash flow to replace these items, and it could also make the tenant quite uncomfortable, and out them out for a bit. If you have to go with an older property for your investment to make sense, see about increasing the loan to cover a new HVAC system, or to replace what might be some items that will need to be replaced.
If your current rental has these awesome qualities, advertise it on your listing then the unit or property becomes available. Let good quality tenants know that what they are looking for can be found with your property.
If you have any questions about property management for Corona, Temecula , Riverside or any property management in the Inland Empire call us 951-520-0058
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Every landlord wants long term tenants, especially property management companies , where we want security and the best return on investment for our owners. But there is a time when you need to allow the tenant to break the lease, or the owner should break the lease, and be ok with finding a new tenant. These instances are important to the financial ROI of the property and to ensure an owner does not dig themselves a deeper hole.
Guest or Tenant ???
Tenant retention is one thing every owner strives to accomplish. Longevity equals profitability. Spending a couple bucks here and there, and or spending a little time to understand the needs of your tenants can create that profitable model over time. You can achieve this by building a better open relationship with your tenants. This small article will provide a great reason to form a professional relationship with your tenant, and offer a road map to profitable property management.
