The longer you are in the real estate investing game the more you’ll pick up tips and tricks to minimize your losses and maximize your gains.
A simple, no-brainer way to do this is by picking the “right” tenants; people who pay their rent on time, every time, and who treat your property well.
Bottom line, quality tenants are a factor in your success with real estate investing.
The question is how do you find and keep these rental unicorns? Read on and learn the strategies that have worked for savvy landlords over the years.
Getting Quality Tenants Through Your Door
Presentation is everything
Sarah, a young professional, scrolls through rental listings looking for her next home. She stops scrolling when she spots what she was looking for; the charming house, freshly painted and well manicured stands apart from the “plain Jane, cookie cutter” homes cluttering up the rest of her feed.
It’s your property, and you’ve just made your first impression without saying a word.
Yes, I’m talking about curb appeal.
There is no reason not to use this time-proven marketing tip to grab attention. Maintaining the exterior of your property shows that you care about it, which attracts tenants who will also care for it.
Of course, don’t stop at the front door.
A neutral color scheme, flawless surfaces, and modern fixtures add a touch of sophistication inside. Remember you’re not just renting a space; you’re selling a lifestyle.
Pro tip: Invest in professional photography. In our digital age, high-quality images can make or break a listing. Consider virtual tours too—they’re a game-changer for busy professionals who value their time.
Cast a Wide (But Targeted) Net
Now that your property looks its best, it’s time to tell the world—or at least the right part of it. Forget the “For Rent” sign in the yard; we’re going digital. Platforms like Zillow, Trulia, and even Facebook Marketplace are goldmines for responsible renters.
But here’s the kicker: don’t just list, entice. Highlight the features that matter to your ideal tenant. Is your property near top-rated schools? Perfect for young families. Close to public transport? Music to a commuter’s ears. Energy-efficient appliances? Eco-conscious renters will love that.
Craft your listing like a story. “Cozy 2-bedroom apartment” becomes “Your urban oasis: a sun-drenched 2-bedroom haven steps from the city’s best cafes.” Be honest, but paint a picture they can see themselves in.
Thoroughly Screen Prospective Tenants
Landlords often fail at this point, but not you. Your best defense against potential nightmares is a comprehensive screening process.
Background checks and credit checks are the first things you should do. Yes, it will cost money, but think of it as an investment; you’re paying for fewer – or zero – problems down the line such as damage to your home or non-payment of rent.
A history of evictions or unpaid debts are warning signs that shouldn’t be overlooked. However, take it a step further by calling their previous landlords.
Be sure to ask key questions
- ⬥ Did they take care of the property?
- ⬥ Were they punctual with rent payments?
- ⬥ Would you rent to them again? These discussions can often provide insights that go beyond what’s written on the application.
Income verification is vital. The historical rule of thumb—that rent should not exceed 30% of income—still holds true. If the figures don’t add up, proceed with caution.
Red Flags to Watch For
What’s not said can sometimes be more powerful than what is spoken. Are there any gaps in rental history? That could mean precarious living conditions. Reluctance to give references? There could be a reason they are apprehensive.
Trust your instincts. If something feels strange during the application process or the first meeting, it probably is. It’s better to keep looking than to reject your instincts and come to regret them.
Keeping Your Quality Tenants Happy
Set Clear Expectations
Now that you’ve found some great tenants you’ll want to do everything yo can to keep them around. It starts with a crystal-clear lease agreement. This isn’t just a legal formality; it’s the foundation of your relationship. Spell out everything from rent due dates to maintenance responsibilities.
But a lease is just the beginning. Create open lines of communication. Whether it’s a dedicated email address or a tenant portal, make sure they know how to reach you—and that you’ll respond promptly.
Stay on Top of Repairs
Nothing ruins a tenant relationship faster than neglect. Got a leaky faucet? Don’t make your tenants chase you down for repairs. Fix it right away.
Make repairs promptly and in cases where there will be delays let your tenants know…even to the point of knocking a little off the rent for that month if it impacted their use of the property.
Regular property maintenance is more than just keeping tenants happy; it also protects your investment. A well-maintained property attracts and retains high-quality tenants while maintaining its value.
Incentivizing Longevity
Want to know a secret…that isn’t really a secret?
It’s generally cheaper to keep a good tenant than to find a new one. Some ways to encourage longevity include offering incentives for lease renewal. Perks such as a tiny rent reduction or an improvement to the property they’ve been asking for can help.
Also, flexibility can make a significant difference. If your two-year tenants need to go month-to-month due to job uncertainties, consider accommodating them. The goodwill you generate can pay off in the long run.
Attracting and retaining quality tenants isn’t difficult, but it does need effort and strategy. Every connection, from the first impression to day-to-day administration, is an opportunity to foster a positive, long-term relationship.
Remember, your property is more than just bricks and mortar; it’s someone’s home.
Guide to Buying a Rental Property
