Owning a rental property is a great way to earn some additional income, and if you play your cards right that single investment could eventually turn into a real estate empire. But finding the perfect starter property is not the end of the journey; it is only the beginning.
Now that you have taken ownership of the rental property, the clock is ticking. Every day that property sits empty is one more day expenses are piling up, and the sooner you find a quality tenant the faster you can start turning that red ink into black. Here are 10 simple ways to attract those quality tenants without delay.
- Start with high quality photos. Chances are you will be marketing your rental property online, and high quality photos are essential. You do not have to hire a professional photographer to take the shots, but you should take your time and choose the best images.
- Set your rents at or slightly below the local average. Setting the right rent will be essential for attracting quality clients, so do your homework and know what your competitors are charging. Setting your own rent slightly below the local average can be a good way to find quality tenants right away.
- Schedule individual showings for your rental property. Open houses may be popular with landlords, but they are not always the most efficient way to attract high quality tenants. Taking the time to schedule individual showings gives you a chance to meet potential clients face to face.
- Trust your gut. If something seems off when showing your property, you should trust your instincts. As long as you do not discriminate based on race, gender or other protected classes you are not obligated to offer your rental property to anyone.
- Order attractive brochures and hand them out. A picture is worth a thousand words, and that is definitely true for rental real estate. If you will be showing your property to prospective tenants, make sure you have attractive brochures to hand out. Keeping your own property top of mind is important, since the best tenants may have their pick of apartments and rental homes.
- Present the paperwork. If the wonderful tenants you just met love your property, make sure you have all the paperwork handy. Printing copies of your lease is important, so make sure you have everything you need before each individual showing.
- Identify your perfect tenant beforehand. As the owner of the rental property, you have the right to set reasonable rules, from prohibiting pets to refusing to rent to those who smoke. Think about who your ideal tenant is and screen prospective renters with those criteria in mind. Just make sure you research the laws to make sure you are not engaging in any illegal discrimination.
- Make any needed repairs before you start marketing. Even minor problems could turn off quality tenants, the ones you really want to attract. If a doorknob is loose or a cabinet doors squeaks, make sure it is fixed before you start showing the property.
- Stage the property in an attractive manner. Staging is a vital part of the real estate game, and it is just as important for the owners of rental properties. Consider staging and think about how the home or apartment will look through the eyes of a potential tenant.
- Screen your tenants carefully. The previous nine tips were designed to help you attract the best possible tenants, but you should not assume that those potential renters are high quality. Aggressive tenant screening is still essential, so run those background checks, talk to former landlords and do the legwork necessary to get it right. Always remember it may be harder than you think to evict a bad tenant, and that makes attracting great renters even more important.
Owning rental property can be the road to long-term wealth, but only if those homes and apartments are consistently occupied. Idle rental property is not earning you any money, and finding quality tenants should be an integral part of your rental property strategy.