5 Tips for Turning Your Residential Investment Property Into a Renter Magnet
by: Natalie Jones
Owning a rental property is about creating a space with mass appeal to attract renters. It means considering location, design, and curb appeal. Review these tips when updating your investment property to bring in the tenants.
1. Make Location the Top Priority
Before you even purchase a rental property, assess the location’s appeal. For example, is it within walking distance to shopping, restaurants, or public transportation? Talk to your realtor about the most popular areas to rent and what properties are available in that area. You’ll pay more for a great location, but so will your tenants. If you need additional fund, look for financing that caters to the real estate market. Research shows that most landlords assess the rent situation around the area to see what the average rent is before setting a price.
2. Focus on the Kitchen and Bathrooms
When you’re ready to make changes to the rental units, focus on the kitchen and bathrooms. You can increase the value with updated appliances and new countertops in the kitchen. A simple paint job on the cabinets and some new hardware in the bathroom, including lighting, will make all the difference.
3. Let Someone Else Take Over
Managing a rental property is a full-time job. Depending on the size of the property, you may need a staff to handle all the operations. Consider hiring a manager to take over everyday operations, such as maintenance issues, rent collection, renovations, lawn care, and more. Before you make any official decisions about staffing, factor in what you plan to charge for rent and the monthly and annual expenses you incur. Remember your rent pricing should reflect the location, amenities, and updates you make.
4. Keep the Colors Neutral
Neutral colors have mass appeal. You can get your tenants to tour the space and imagine their own furniture fitting in each room. If you go too bold with color, it’s difficult for them to make that connection. Stay with grays and variations of white. Keep the kitchen cabinets and countertops in light colors to give the room a more basic, modern look. Try to avoid carpeting, especially if you plan to allow pets. A neutral, hardwood floor is something many renters look for in an apartment. You also want something timeless that will not look too outdated in a few years.
5. Market Your Business
If this is your first property investment, make sure you purchase it under your business name. If you’re not yet officially registered, choose your business structure first. For example, you can register as a limited liability company and receive liability coverage and certain tax advantages. You don’t need a lawyer to get it done. You can just register online using a formation service for a much lower cost.
Now you can start working on your marketing strategy. Email marketing campaigns are a great way to reach many potential tenants. You can create a PDF flyer, for instance. Edit a PDF online with a free PDF editor and easily make document changes and drawings without even needing to print and scan. All you have to do is upload the file and make the changes you want to make. Then download it and send it in a mass email.
Once your property is on the rental market, remember that your job now is to make your tenants feel welcome and at home. Listen to their complaints and suggestions with an open mind. Your goal is always to keep renewing leases.