Did you know that finding tenants for your rental property can make or break the success of your investment? Imagine spending your entire life’s savings on a home, and there is no one to help you earn a passive monthly income.
Although people are always looking for homes every day, there is no guarantee that they may want to rent from you long-term.
If you want to get the highest return on investment for your property, here is all you must know about how to find tenants for rental property and why tenant screening is essential.
How to Find Tenants for Rental Property?
Finding tenants for rental property is necessary because you do not want someone who does not pay their rent on time.
They may also destroy your home and leave you behind with expensive repair bills if you are not careful. Having the best tenant is crucial in your property investing journey.
There is no other way around it. A horrible tenant can lead to more expenses for you to deal with. You will need to evict them and spend more time and resources finding tenants again.
Therefore, it is best to vet people before signing any contracts to ensure that you are not handing your precious keys over to someone dodgy. The good thing is that you are never alone.
Nearly 40% of landlords say that finding tenants for their rental property is their biggest concern. With that being said, there are also plenty of incredible people who always pay on time and do not cause any damages, and it is not difficult to attract them to your listing.
Advertise the Right Way
Although there are numerous platforms to advertise your property, not all of them help vet potential tenants effectively. For instance, if you post your property’s ad on Gumtree or Facebook Marketplace, chances are that you will come across more scammers than tenants.
Find out the best websites that real estate agents use in your area. This is essential because they would only use the most professional and recognized sites that have successfully linked tenants and landlords in the past.
The top websites also do profile verifications and run background checks. This will spare a lot of time and money by not going through the initial process yourself.
Some sites may not be accessible for anyone to post. Therefore, you may need to consult a professional real estate agency because they can post listings anywhere.
This may include a leasing manager fee, but it is always worth it for the peace of mind they bring. A professional can help screen tenants and gather proof of income. Here is more on how to rent safe and protect your property.
Many property owners believe that charging the highest rent possible will help them maximize their investment property returns. However, this is the wrong move to make.
The best way to find the right tenants for your rental property is by finding the balance between a high number of applications and pricing competitively. If many people apply for your home, it does not mean that you should hike up the prices.
Find out what other properties like yours are charging their tenants and set a number to match those.
This way, you can find people who would be willing to stay at your place much longer instead of having to deal with a lot of vacancies down the line. Then you will get a consistent income every month without worrying about an empty period with no tenants and no money coming in.
To do this the correct way, you can always ask for a rental appraisal. This involves competitive research to scope out rents in your area to determine the perfect price range.
There may also be times during the low season when rents come down. However, if your tenants love you, they will continue staying for as long as possible to make life easier for everyone involved because no one enjoys moving all the time.
Improve Your Property
There is nothing worse than renting a home or apartment that starts falling apart as soon as you move in. Tenants will resent having to contact you to fix things all the time.
Therefore, you need to make your property stand out from the competitive market. This does not mean that you need to spend a lot on renovations and redesign the entire place as though you are in a reality TV show.
You should also never exaggerate how amazing your property is if you cannot back it up. Be upfront about all the problems tenants can expect and make some minor fixes around to ensure that they are comfortable until you do more renovations in the future.
The first step is to hire a professional photographer because nothing beats a first impression. Then you should include all the important information in your property description.
Mention things that catch people’s attention. Things like air conditioning and on-site parking always appeal to people who would not mind paying extra for a bit more convenience.
Even if you do renovations, you should focus on what tenants expect. Then you should conduct regular maintenance and make an effort to clean and tidy everything as soon as tenants move out before you advertise the property again.
Before fighting for the best tenants in the market, you should understand who you are trying to attract. This way, you can better determine when to host open house appointments suitably for working professionals or students who may be on summer break.
Your demographic will feel more supported and valued if you focus on their wants and needs more than other landlords. They will also tell all their friends about you. Then they will rent other properties from you as well if you have more.
Find the Best Tenants Today
Now that you know how to find tenants for a rental property, you need to start sprucing up the place. Remember to keep your demographic at the forefront of all your plans.
There is no point in being everything for everyone because people have different tastes. Ask yourself what type of tenant you want to attract, and the rest of the process will become a breeze.
If you enjoyed reading this rental guide, check out some of our other posts for more information.