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How to Attract Quality Tenants Like a Real Estate Mogul
By Ray Flynn, DiyGuys.net
Long-term, reliable tenants are the heart of success for landlords. An unrented property is stressful and can be very costly. If your property is vacant, you’re losing instead of gaining. And the key to finding good tenants is the right rental.
To help, Calcagni Real Estate invites you to check out the following guide to help you prep your property so you can land great tenants.
Delivering ‘Wow’ from the Street
Not only do first impressions make a difference, they also last. When a prospective tenant shows up at your property, you want them to be impressed. Even if your property is not high-end or high rent, there’s a lot to be said for showing a clean, well-kept property. From the moment the renter steps toward your rental unit, it needs to say loud and clear that you care about the property (and, by default, them).
Cleaning inside and out makes a difference. In fact, Cox & Co. states that cleanliness is a huge factor in whether or not a tenant will rent a property. Hiring a cleaning service to keep things up to speed is your best option, and is more cost-effective than you might think. Besides, when it’s rented, you’ll begin to recoup the costs of any expenses involved in getting the place ready.
Don’t forget about tidying the outside, too. A freshly mowed lawn and a lovely, clean welcome mat deliver a clear message that the renter can call your property home.
Consider also adding a new coat of paint, which is an underrated and inexpensive way to improve property. This applies both inside and out. Dead and ailing trees and shrubbery should also be removed as these are not only unattractive, but may pose a real hazard.
Similarly address your overall landscaping needs. Curb appeal is essential when it comes to rental property. If you need help, connect with landscaping professionals to help create a look you like that fits your budget.
Establish Your Business
As you prepare your rental for habitation, take care of business details like legally establishing your business. Landlords often opt for an LLC, which offers tax advantages and asset protection. Asset protection is especially important in the event of a dispute with a tenant.
Fortunately, registering to start an LLC doesn’t have to be a long, drawn-out affair. You can make short work of this task by using a formation service to help legitimize your venture. But be sure to read through LLC reviews before selecting a formation service. Each service is slightly different and you’ll want to get one that has the features you need.
Marketing Your Rental
You want to draw attention to your rental property, but working with a property management company will cut into your rental income. To keep costs low, an option is to take the reins and manage your marketing solo.
Start by creating a stellar website specifically for your property. This should include a virtual tour of the rental, and it should contain quality photos that make your rental shine, along with basic information like pricing and amenities.
If this is part of your startup rental business, you’ll also want to use social media platforms to promote your site.
Getting Down to the Numbers
A fair rental price is an important variable if you want to attract the right tenants. Picking the right price that matches the neighborhood, the property itself, and the local market will make a difference in the response from renters. If you set your prices lower than other properties in the area, it may attract more renters who may have less reliable income or even low-quality tenants.
The best way to determine a fair rental price is to research your local market. For example, housing in Connecticut has been on the rise, which naturally drives up rent. Explore what equivalent rentals are going for, and also calculate your potential mortgage after factoring in your down payment and any taxes and fees. In order to make money, you’ll need to price your property above the expected mortgage price. While breaking even can still help you build equity, it does not safeguard your budget against repairs or normal wear and tear on the property, so be careful.
So how do you decide on the rental price? Because rent is a deciding factor for many renters, the more enticing you make the offer, the less stress you’ll experience as you select from quality tenant applications. Consider offering perks like an in-unit washer and dryer and free internet. Weigh your options, examine what competitors are offering, and budget for the perks that make sense for your situation.
Protecting Your Investment
Even in a low-crime neighborhood, security is a critical consideration for renters. All external doors and windows should have key locks. A security alarm system is also a must these days as it provides a sense of wellbeing and safety for tenants. Knowing the property is secure provides you peace of mind, too.
Along those same lines, if you have purchased an older property, consider adding a home warranty to your property. Because these warranties cover larger appliances and household systems, like your HVAC, the cost is worth the value – especially if those items are older and nearing replacement. Take an honest look at your investment property to see if a home warranty is the right choice to save you from large unexpected expenses.
Set Yourself Up for a Long Term Investment
Reduce your stress and enjoy being a landlord with these strategic rental practices to attract reliable, long-term tenants. The sooner your property is rented after you purchase and prep it, the sooner you start seeing a return on your investment. Make strategic improvements and list the property under your LLC to ensure you have liability protection if something goes wrong. And consider a home warranty to protect you from surprise expenses.
If you’re in the market for a new investment property, contact the professionals at Calcagni Real Estate. Visit our website to see current listings and to connect with an agent.