As a Landlord…
If you acquired a property and aim to rent it, there are some preliminary steps we recommend you before finding the best tenants who will make your investment profitable:
- Treat your investment like a small business that can bring you a lot of money or, alternatively, if neglected, can cost you money. Research thoroughly your target market you are appealing to before planning your marketing campaign and plan any decorations or other expenditures. Also, inform yourself about the total cost of ownership (taxes, mortgages, insurance, repairs, renovations, etc.)
- There are a lot of new homes on the market competing with your property: you should not be worried about the rental income you potentially may lose while making improvements to the property. Plan renovations and decorations: painting in neutral colors and using high-end appliances will always rent faster and for top amount. Decorations and accessories have to be functional, targeting your ideal tenant and in the same time appealing to the masses. Focus on kitchen and bathroom – they provide usually the most of the “WOW” factor. Moreover, if you plan to sell your property in the next years, kitchen and bathroom updates provide statistically about 80% return on investment, which is the highest ROI among most renovations.
- Advertise your rental property for one week prior to the day it becomes fully prepared for showings. When listing the advertisements, use professional-looking photos of the property and highlight distance to interest points in the area (shops, schools, transportation facilities, etc.). Do not list only the physical attributes, try to capture the lifestyle that appeals to your target audience.
- Before deciding if renting or not to tenants with pets, just consider the idea of being pet friendly: a tenant will always choose his pet over an amazing apartment. Statistically, owners can charge on average 20 to 30 percent more for locations that allow pets. Among the additional income from an increased rent (or pet fees), there are also other benefits: a larger pool of applications to choose from and longer periods agreed for the rental contract. The key is to mitigate the risk and make sure you are covered. Tenants will subconsciously choose to pay a higher rent, rather than pay a “pet fee/pet deposit”.
- When scheduling appointments for showings with potential tenants, try to show the property to as many people as you can on the same day. Try to line up each appointment 30 minutes apart. This creates also a sense of competitiveness and hype between the potential tenants that do show up. If the property is still occupied with tenants, ask them to leave during those hours. It is more convenient for them to vacant the property for few hours than invading their personal space with multiple showings.
- It is very important to make a screening of the rental applications and choose the best tenants, even asking recommendations from former landlords.
Contact us if you would like us to recommend you other steps and to assist and navigate you through the rental process!