It’s every landlord’s dream to land great tenants. Great tenants are respectful, care for their rented premises, abide by all rental policies, and pay rent on time. However, great tenants aren’t something you stumble upon. They come by design!
In this blog, you’ll learn 7 tips on how you can find great tenants for your rental property.
Get to Know Your Target Renter
Know who your target tenant demographic is for your rentals. Is it students, families, or professionals, for instance? Knowing this will help you craft a rental ad that speaks directly to your ideal demographic.
In addition, you’ll also know what marketing channels to use for effective results. For example, younger demographics might look online and on social media.
Make Your Rental Property Rent-ready
Quality tenants will only rent quality units. If your rental property looks like it has seen better days, it’ll be harder to attract tenants. And even if you’re able to, you won’t be able to maximize your rental income.
So, how do you go about making your rental property rent ready? The following are some tips to help you in this regard:
- Take care of any needed repairs or maintenance tasks
- Re-paint the unit if necessary
- Spruce up the curb appeal
- Give the home a thorough cleaning
- Determine a fair rental rate
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Hire a professional property manager to handle the day-to-day operations
Advertise Your Rental Unit Properly
Once you know the kind of tenant you’re looking for and your property is rent-ready, start the marketing process immediately. Run an extensive marketing campaign in order to attract as many prospective tenants as possible.
You’ll also want your marketing campaign to narrow down your target rental market. If you’re targeting young students, for instance, then ensure you’re focusing your rental ad on areas around campuses like bulletin boards.
Generally speaking, though, make sure to use both online and offline advertising platforms including social media, local classifieds, rental listing sites, community bulletin boards, and yard signs.
Hold a Property Showing
After advertising your rental property, prospective tenants will start reaching out to you to schedule a property showing. Showings will give you an opportunity to meet and interact with prospects.
But prior to the showing, ensure that your rental fits the bill. Clean it thoroughly, by removing clutter and working from the top down. From there, you want to stage it. This will help a prospect visualize themselves living on the premises.
During the showing days, keep the lights on. Also, if it’s during the cold or hot seasons, make sure to set an appropriate temperature. What’s more, you’ll want to pre-screen every applicant to examine whether they are going to be a good fit for the property.
The following questions should get you started:
- Where do you currently live?
- When are you looking to move?
- Does your current landlord know you’re looking to move out?
- Will you agree to a credit or background check?
- Do you have pets?
- Do you smoke?
- How many people will be living with you?
- Will you have a roommate?
Charge the Right Rent
It goes without saying that you’ll only be able to find a great tenant if you charge the right rent. The right rent is neither too high nor too low. You want a rate that keeps you competitive in the market while allowing you to maximize earnings.
You can determine the right rental rate in a couple of ways. One way you can determine the rental rate is by abiding by the 1% Rule. This formula compares the price of a rental investment against the gross rental income. For example, if the purchase price of the property is, say, $100,000, then according to the 1% Rule, the property should be able to earn about $1,000 in gross monthly income.
Another way of doing so is by hiring a property manager. An experienced property manager will have a proper understanding of the local rental market which will help inform you on how much the property should rent for.
Screen Prospective Tenants
Finding great tenants isn’t based on guesswork, it’s a calculated move that should rely on proven strategies. Before allowing a tenant to sign the lease agreement and move in, make sure you have screened them.
A good tenant screening process is one that examines a tenant on the basis of the following criteria:
- Income level
- Credit rating
- Employment background
- Relevant criminal history
- Rental background
- Character references
With that in mind, you’ll also want to make sure that your tenant screening process is consistent and abides by the Fair Housing Act. The act requires that landlords treat tenants without discrimination on the basis of certain protected classes.
Protected classes in at the federal level include race, color, religion, nationality, sex, familial status, and disability. Different states may include additional protected classes.
Hire a Property Management Company
Finding a great tenant certainly isn’t an easy process. You need certain skills and experience not to mention the time and resources to screen them once a prospect shows interest. This is where a property manager comes in.
A good property manager will not only have years of experience but will also have a tried and tested screening process. They will also be familiar with the Fair Housing Act and other legal nuances for a successful screening and marketing process.
Bottom Line
Renting to a great tenant is rewarding. Among other benefits, you’ll enjoy a stress-free rental management experience and be able to maximize your rental income. These tips should help you get started on this journey!
For expert help in finding great tenants in New Jersey, turn to the trusted team at Lone Eagle Management. We’re one of the leading property management companies in the state. Contact us today to learn more about our services!