33 Tips to Attract the Best Tenants and Get Them to Pay You More
By Tai A. DeSa, Significa Corporation
Good tenants come to you not by accident, but by design. There are good tenants in every price range and in every neighborhood. A professional landlord will attract quality tenants. An unprofessional landlord will attract troublesome tenants. If you are investing in property, then you should likewise invest time in learning how to attract the best tenants.
Below are some tips that may help you increase your investment rental property income by $600 or more a year, while also saving you time and aggravation.
Tip #1: The landlord’s appearance matters. Many landlords focus on the attitude and appearance of prospective tenants, but some landlords forget about their own attitude and appearance. Quality tenants observe the behavior and dress of the landlord and their staff. The tenants assume that if the landlord is a professional who takes care of every detail, then every detail in the apartment will be covered as well. Good tenants feel comfortable around a landlord who is organized. Landlords who show up late, do not use checklists or applications, and generally fumble about will repel good tenants while attracting problematic renters. Remember to be professional in your emails, telephone conversations, and text messages too. Set the tone with your prospects from the very first interaction.
Tip #2: Figure out who you want as a tenant. What is your target market? Who would be your ideal tenant? Many landlords are unfocused in their advertising because they don’t know who they really want to have as a renter. Before running your first advertisement, figure out whom you want to attract. Is it a working professional with an office downtown? Are you looking for college students? Or trying to avoid them? Do you want a large family? Or a single man or woman? Will you consider someone with pets? If you don’t know what kind of tenant you want, you may end up getting a tenant you don’t want.
Tip #3: Figure out how to find your model tenant. Once you’ve decided what kind of renter you’re looking for, write down some ideas on how to reach that segment of the market. If you want college students (because you generally can charge a higher rent and place their parents/guardians on the lease), then advertise with the college’s off-campus housing office or with flyers strategically placed around campus. I have a duplex near a major university, and my target market is female college students in the nursing school (because it is a five-year program, which means they need to rent for an additional year). With that university, I went with 15 flyers in hand to the woman who runs their off-campus housing office. When I stated that I didn’t want to place my flyers in unsightly places around her employer’s campus, she gave my flyers to her two interns and instructed them to place the flyers in popular areas around the campus. I received calls from multiple qualified applicants, and I currently rent my duplex to seven female nursing students (who have lived there for almost three years now). Now remember, per federal law, you cannot be discriminatory in the wording of your advertising. However, where you place your ads will determine who responds. Know who you’re looking for, and then you’ll find them.
Tip #4: Don’t show an unfinished apartment. Show your rental property when the renovation is complete. Most people cannot envision what an apartment will look like once you’re done with painting, cleaning, and fixing. If you have tools lying around, garbage piled high, and holes in the wall, the prospects will think you’re a slumlord. When I first started in the business, I had a two-bedroom apartment that was undergoing a major renovation (new flooring, new paint, new light fixtures, new furnace, new water heater, etc.). Trying to speed up the process, I advertised the apartment for rent weeks before the renovation was to be completed. I spent about $200 on advertising and showed the place to 17 prospects via separate appointments. I did not receive a single call back. Given that I had to drive 50 minutes one-way to the house, that was a complete waste of time and money. Show your beautiful apartment when it is move-in ready. Your conversion ratio of showings to placed tenants will be very high.
Tip #5: Advertise online. The overwhelming majority of apartment hunters look online prior to calling you to schedule a showing… GO TO THE FULL ARTICLE FOR MORE
ABOUT THE AUTHOR
Tai A. DeSa is Chief Executive Officer of Significa Corporation, a professional real estate investment company based in Pennsylvania (www.significacorp.com and www.significadeals.com). DeSa is a graduate of The Wharton School at the University of Pennsylvania. Prior to entering the real estate business, he served as an officer in the U.S. Navy. He is the oldest in a family of 11 children and was valedictorian of his high school class. DeSa is also an Associate Broker with Keller Williams Real Estate (www.thetaidesateam). He is an organizer of the Lehigh Valley Real Estate Investors Group (www.lvrig.com) and an Area Director with Business Network International (www.bnidvr.com).
DISCLAIMER: READ CAREFULLY: The information provided in this article is not considered legal advice and is given only for information purposes. ALWAYS SEEK THE ADVICE OF YOUR LEGAL COUNSEL.