When you are buying real estate for investment purposes, finding quality tenants is definitely important. After all, you certainly don’t want to have a constant turnover of tenants. However, it’s more than just the hassle of constantly looking for new tenants, you also don’t want problematic tenants who might cause damage, disrupt other residents, or who don’t pay their rent on time. Finding quality tenants can help you build your real estate portfolio and investment income with fewer tenant issues.
Of course, when you want to attract quality tenants to your rental property, you need to know what type of amenities will be appealing to them. While high-end amenities can definitely be a pull for many renters, it’s not always the upscale features that are needed in order to draw the interest of quality tenants.
The following list of important features will help you choose an investment property that will be of interest to a wide range of desirable tenants.
You’ve heard this before. Whether you’re purchasing a home for your family or you’re buying investment property to rent, location matters. Good tenants are going to be looking for a place to live that has easy access to employment opportunities, quality schools, public transportation, and a variety of community resources.
Of course, not every property is going to be all things to all renters, but it can help draw good tenants if you have a rental property that offers a good location. Consider the quality of the local school district as well as the accessibility of local roads. You might even want to consider how easy it would be for a renter to bike to school or work. A rental property that is close to grocery stores and other area amenities will also typically perform better than a property that is in a more obscure or remote location.
2. Parking availability.
The availability of off street parking, especially if it has some type of covered parking will generally be in high demand. Tenants want a safe and secure place where they can keep their vehicle. Whether they want to avoid the damage caused by severe weather or it’s simply making sure that their vehicle stays looking its best, when you can offer prospective tenants a garage or covered parking, you’ll have one more reason why quality tenants will find your investment property a good place to live.
3. Private areas.
Sometimes it’s the little things that can make a property more tenant-friendly. When you think about the usability of your investment property, you’ll be on the right track for bringing in tenants who value these extra amenities. For example, most renters like to have a little extra storage space. Even if the property seems to have plenty of storage, some extra space never hurts. If you can provide a private storage area in a multi-family property or some type of extra storage for bikes, yard tools, and other essentials, most tenants will find that this adds extra value to the property.
Additionally, with a single-family property, a fenced in yard can be an added bonus that will certainly add appeal. Whether the tenant has young children, a pet, or they simply want to relax in the yard while having a bit of privacy, a fenced in yard can definitely be a great way to bring in quality renters.
4. Rental readiness.
When a tenant moves out, there will likely be repairs, cleaning and upgrades that will need to take place before the next tenant moves in; however, it’s best if you can get the bulk of this work done prior to showing the rental unit. If the property must be shown during this time, make sure the prospective tenant understands exactly what’s being done and that the unit will be clean, finished, and ready for occupancy on the first date of the rental agreement. Nobody likes to move into a project.
In addition to making sure a unit is ready for the new tenants on their move in day, it’s also important to make sure that major systems, such as the electrical, water and HVAC systems are in good working condition. A little maintenance can go a long way in providing a tenant with a quality living experience in your rental property.
5. Upgraded amenities.
When you want to find a quality tenant, you need to provide the kind of living environment that this type of client will appreciate. Quality tenants are willing to pay a bit more for a property that is comfortable and looks nice. While you don’t have to have a luxury rental property, there are upgrades that will not only allow you to get your investment back in higher rents, but that will also bring in a higher caliber of tenant. Keep in mind, a quality tenant ends up costing you less in the long run. Frequent tenant turnover, unpaid rents, evictions, and repairs can quickly take a bit out of your bottom line.
Simple things, such as a few upgrades can make a dramatic difference in how a property is seen. Think about adding new appliances in the kitchen, swapping an old sink for a more upscale and modern sink, or even upgrading the countertops. You’ll be amazed how a few changes can completely transform a room.
Other rooms can also be upgraded rather easily. An older bathroom is not very attractive and probably won’t be very inviting to a quality tenant. However, a new vanity, shower enclosure or even lighting, can help make this space much more appealing.
6. Include appliances.
Tenants are going to need appliances, so providing them with the rental unit makes it easy for everyone. Additionally, when you give your prospective tenants one more thing they don’t have to worry about, you’ll be providing an important tenant-friendly benefit that renters will appreciate.
7. A quality rental experience.
When you want a good renter, you need to have a reputation of providing a good rental experience. This means responding to tenant concerns quickly. Repairs and maintenance issues should be handled promptly and professionally. Quality tenants will be evaluating not only the rental unit, but also the responsiveness of the property owner or management company.
There are many advantages to working with a quality renter. You’ll have fewer problems, and you’ll know that your property is in good hands. With a few added amenities, and attention to the renter experience, you’ll be able to draw from a pool of qualified tenants with excellent rental histories.