5 Features That Will Attract The Best Tenants
By JD Esajian on June 25, 2018
There are more renters today than ever before. With home prices rising and loan approvals still challenging this is a trend that isn’t going away any time soon. If you own a rental property, you should do everything in your power to constantly increase appeal and attract more tenants. Instead of knocking down walls and making drastic changes you are better off thinking like a tenant. By putting yourself in their shoes you will realize what is important and what items you can do without. With the right improvements and updates you will not only find more tenants who are willing to pay more but stay in the property years longer. Here are the top five property features that will help attract more tenants.
- Price. Buyers, and renters, are always influenced by price. Regardless of market demand it is important to always price your rental properly. You can have updated everything and a prime location but if you overprice your property tenants will look elsewhere. As is the case with buyers you always want to create multiple sources of demand. If you can get two renters who love the property they may be willing to stretch their budget. They wouldn’t be interested in the property if the rental was outpriced from the start, but by renting at fair market price you create demand. An extra $50 a month may not move the needle too much for you, but it can make all the difference for a tenant. This is especially the case if you are talking $950 as opposed to $1000, or other significant benchmarks. Finding the sweet spot for price requires some research of the market knowing where you can push and where you are better off taking what you can get.
- Safety. Everybody wants to feel safe in their home. If the rental is not located in a safe area you can bet tenants will look elsewhere. Aside from a safe neighborhood there are plenty of things you can do to make the property feel safe. Start by installing a home security system. For just a few hundred dollars you can give your tenants peace of mind. A security system won’t prevent a burglary, but it may dissuade one and more importantly it will make your tenants happy. Aside from a security system something as simple as a new front door can do the trick. Think about how bad an outdated front door that barely shuts looks and feels. The interior may be great, but renters will never know because they will not be able to get past the front door. The final action you can take to protect your property is to hire a dedicated property manager. There is something about having someone you can call 24 hours a day that is appealing and comforting. They won’t patrol the house like a squad car, but just having the ability to call if there is an issue will make your tenants feel safe.
- Selected modern amenities. There is always a fine line in any rental property between modern and practicality. Depending on where your property is located you could be throwing money away by over improving for the market. Not every property wants, or needs, a custom hot tub, high end fixtures or even stainless-steel appliances. As nice as they may be on the surface they often don’t do much to move the needle for tenants. You are much better off picking and choosing the right amenities to update. Start by installing a quality washing machine and dryer. No tenant wants to lug laundry around and spend a few hours washing clothes. Your washer doesn’t need to be top of the line, but you must have one on site to attract tenants. You can also find new appliances throughout the house without breaking the bank. An old stove, refrigerator and dishwasher will stand out like a sore thumb. The next time there is a holiday sale think about a middle of the road new appliance.
- Updated condition. The overall condition of the property often goes hand in hand with the amenities. You don’t need to demo the house and start from scratch, but you can’t have a 20-year-old dresser in the master bedroom either. You know what is outdated and needs to be improved. Old carpet, and outdated toilet or beat up hardwood floors should be swapped out and updated. On the surface, these may seem daunting and expensive but are actually more cost effective than you may think. When you rip up the carpets you may be pleasantly surprised to find hardwood floors underneath. If so, all you need to do is clean and possibly stain to give them new life. Talk a walk around your rental and make a list of anything that is outdated and make them a priority to update.
- Space. If you have the opportunity to create space in your rental you should. This means cleaning out a garage, attic, spare room or basement. Renters want as much useable space as you can provide. Even if they don’t plan on using it, you should give them the option and make it available. A small room off the kitchen may not make a bedroom, but it can be an ideal work space. If you have been storing old items in the room for years, you need to clean it out and make it usable for your tenants.
In areas of high demand the little things you can do with your property can make all the difference. If you are looking to create appeal start with these five simple improvements.