The key to maximizing profitability and minimizing risk as a landlord has a lot to do with choosing the right tenant. That starts with the marketing of the property, and the energy that can be produced off that. There are a few tricks to creating effective advertisements to help find the best tenants for your properties. You can advertise in the newspaper, on billboards, or on the Internet; however, you may be wasting your time and money advertising to people who either aren’t interested in what you have to offer or aren’t qualified to meet your criteria.
A good ad campaign lets you target and attract the kind of tenant you’re looking for. An advertisement works best when it’s appealing. So, before you decide what information to incorporate, think about what characteristics you value in a tenant. Here are some good examples:
· Stable employment
· Pays rent on time
· Has never been evicted or used a landlord as a revolving line of credit
Once you’ve identified characteristics you like in good tenants, think about what factors contribute to a good rental experience for landlord and tenant. What did you as the landlord have to offer your last tenant? Was the last tenant happy and satisfied? Assessing this information will help you decide how to focus on the marketing aspect for the property.
Often you will attract high risk tenants who use landlords as a revolving line of credit when advertising your rental property, so it is imperative that you attempt to identify these tenants immediately. Here at RTS, we have a very specific checklist process for screening tenants and filtering out bad elements for your property. Sometimes we even go as far as contacting up to two previous landlords for the potential tenant in order to verify their background. This can get tricky, since some landlords will lie in order to either keep their tenant (say they’re awful when they’re not) or lie in order to get them to leave (they will say they’re great when they’re not). This is why we have such a detailed process, and it will reduce the risk of you getting a bad tenant for a good property.
It’s important to note that, if the marketing aspect of the property is done right at the beginning, usually bad tenants will filter themselves out even before the screening begins. Rest assured though, that we will do our best to get you the best tenants we can find for you to do business with.
There are many things we do to lessen vacancy times and quickly rent the properties we manage. However, one of the things we do that makes us distinct is that we market properties using the MLS.
There are some exceptions to this, but almost every property we represent is marketed using the MLS. The MLS gives the properties better exposure to all other real estate professionals. We share our commission, so it does not cost you extra. While many property management companies do not utilize the MLS, the ones that do charge the commission to the property owner. We found an amazing payoff doing it our way. The property rents much faster because we have broader exposure.
We also understand the importance of how properties are presented to potential renters. We use high-quality photos including wide angle photos and panoramic photos. These provide great views of even small spaces.
We offer walk-through video tours. These provide viewers with an accurate portrayal of what the property looks like including the exterior and the neighborhood. You can learn more about our video tours by reading How to use video to lease your property faster.
We have recently started offering 3D tours of properties. We have a professional person with the equipment and know-how to create fantastic 3D tours. These are hugely beneficial, not only for the present but the future. These 3D tours provide a layout of the property for future listings. Layouts include measurements of each room, which people greatly appreciate. The 3D tours are not 100% at this time, but will be soon.
Another strategy we adhere to is exposing the house as early as possible. Mostly, as soon as we know a house will be available for rent, we start marketing it. Even if the tenant is still living there, we market it online and offer limited group showings. About 30% of the time, we get a deposit for a property before the tenant even moves out. This is not always possible depending on a broad range of factors including the amount of work that needs to be done. We follow a detailed procedure and checklist to ensure every property is clean, maintained, and ready to rent. Learn more about that process by reading What needs to be done to my house before it is ready to rent?
We use a scheduling software that allows us to send information to multiple websites at once, and it allows us to track leads. We manually follow-up with each lead to get feedback on the property and make adjustments as we go. Being open to get feedback enables us to see how potential tenants view the property. This offers significant insight into possible changes that would make the house rent faster.
A property should never sit on the market for a long period. We understand that vacancy are costly to the property owner, and it is our goal to make property ownership as profitable as possible. There is real work done on a weekly basis to reduce vacancies and ensure all properties are properly cared for and marketed.
Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!
The market has been ruthless to many landlords as well as opened up new oppurtunities to acquire properties and make more money in real estate investments than every before.
When looking to lease out a property and find the best tenant you need to keep in mind the following and vary your strategy according to the local market you are working in and the type of property you have. It helps of course to have the help of a professional team with experience. However if you want to go it on your own here are some guidelines and strategies that will hopefully help you manage this process. Keep in mind we do have a marketing and tenant placement service for those who want to do the management themselves.
Certain areas will simply attract a different kind of tenant than other areas. It is important to understand various areas and the best marketing for each area as well as how to screen tenants.
For lower income areas (properties with rents $300 to $850) Craigslist along with aggressive handwritten signs (if necesary) might be the way to go for marketing. Also in many lower income areas you won’t find a tenant with good credit. You have to screen those tenants based on their eviction history, criminal history, landlord referrals and income. Make sure you check those references. We have a grading system for quickly grading low income renters. This is important because competition is brutal. If you can’t give an affirmative answer with in several hours your best in class low income tenant may have signed somewhere else already. In many lower income areas the competition is so fierce that you won’t be able to attract a tenant with out discounting the security deposit.
For higher end areas (properties with rents 900 to 2,500) the process is much different. Those properties need to be put into the MLS as well as numerous other websites including Craigslist (which is still very useful). Tenants may come through outside agents who represent them. The good news is generally there is a much higher quality pool of tenants to choose from. You may be able to require great credit and a full security deposit. However you have to sell good prospects as well as they have a choice. Rental prospects may in fact be interviewing and screening a landlord or management company just as much as the management company is screening them. They will make a choice based not just on rent and whether they like the property but also they want to know that a professional is managing the property and want assurance that the property is going to be maintained in a timely manner and their needs will be dealt with professionally (hint- We actively market to clients not just our properties but the assurance that we as a company have a system to take care of them).
With more than 45 years of investment property management experience our expert team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!