Your rental portfolio is a business. Businesses run best when they have a set of objectives and goals the owners wish to accomplish. When reviewing the purchase of rental homes, do you consider what the tenants want? More importantly, what the great tenants want? There are some simple things you can do to attract great tenants. Use this information when shopping for your next property or considering upgrading your existing rental.
Your Target Market-Great Tenants!
Great tenants:
- are the ones that pay on time every month,
- understand what is their responsibility and what is yours,
- treat your home with pride because they also see it as their home,
- are the ones you just hate to see leave.
Maybe that is not a part of your objectives, but I can argue it should be. These tenants will certainly help you boost your returns.
How To Attract Great Tenants?
How to attract great tenants is easy and it is hard. The golden rule applies and is a great starting point. Here is a simple list of considerations we have seen be important to the best tenants.
- Location of the Home-Yes, in real estate everything begins and ends with location. The best tenants are not going to rent next to a noisy commercial business. They are not going to want to live on incredibly busy streets. They want exactly what you want in your home. Yes, you can find great locations in all price ranges. Understand the location before buying.
- Five senses test– There are five commonly acknowledged senses:
- touch
- sight
- hearing
- smell
- taste
We all have slightly different standards for what feels like home. After over 25 years in this business we can say most people share a common bond as to what a home will feel look and smell like. Before you buy, decide if the barking dogs kept outside next door might be a problem for a great tenant? What does a great home taste like? Do your potential tenants believe they can bring home some groceries tonight to your rental and eat dinner? Is it clean enough to move into? Does the rental pass your five senses test? If it does, then it will attract the best tenants.
- Appliances– Many owners do not offer appliances because they assume the tenant will walk away with them. This is a chicken or egg issue. The great tenants want refrigerators, stoves, microwaves, washer and dryers. They are not storing these somewhere for their next home. They appreciate not having to acquire and move them into a property. Nothing says “I don’t trust you” better than leasing a home with no appliances.
- Easy rent payment– the best tenants want to be able to pay their rent off their phone, and I do not mean by calling you! Mobile access to payment platforms is a great option that most on-line systems offer. Great tenants want to be able to set up their payments for rent and forget about them. Or go on-line at the beginning of the month and with a couple of clicks know the payment is made, using stamps and envelopes, or worse, driving to a place of payment, are not features the great tenants consider as attractive. Do something now to make sure you can accept electronic rent payments.
Attracting and keeping great tenants is really not hard. When accomplished, the returns of your business will accelerate and you will enjoy the satisfaction of knowing you are providing quality homes to great people!
