A vacant rental property is a landlord’s worst nightmare. The longer it takes for you to find an interested, reliable tenant, the more money you’re going to lose. So how can you avoid this problem when it feels like your tenants have all of the control? Be proactive. Take steps to make sure a property is appealing and can provide what renters want BEFORE you make a purchase.
What do renters want? Here are 7 things most renters are looking for:
The Right Price
Owning a rental is like owning a business. You want to find the price that is low enough to be appealing to consumers and competitive in the local market but high enough to make you a decent profit. Price is a driving factor for anyone looking for new housing. In fact, 37% of renters say they’re moving to save money.
Before you purchase a property to rent out, calculate how much you would have to charge for rent in order to cover mortgage payments, property taxes, insurance, ongoing maintenance, capital repairs, property management, and whatever other surprises pop up over time. If that number is higher than the median rent in your area, the property will not be a profitable rental for you. Move along until you find the right price.
A Convenient Location
62% of renters care more about the location of a rental rather than the unit itself. Convenience is what renters want. First of all, renters want to live close to work. 32% of people claim they’re moving to be closer to their place of employment (same link). Not only that, a prime rental property is also located in a desirable neighborhood, near a grocery store, in a good school district, with ample entertainment options. If a property is within walking distance of some or all of these things, even better!
Another factor renters consider when checking out a property’s location is safety. Renters will want to know about the crime statistics in the neighborhood, so don’t think finding a cheap place in a rough part of town will leave you rollin’ in the dough. Find a place that’s safe and be sure to promote that when looking for tenants.
A Place to Park
When it comes to parking, the struggle is real. Especially in urban areas. A garage on a single family home is a huge selling point, both for parking and storage. Let potential tenants know if your property has a parking garage, large driveway, or private street parking. They will most likely be thrilled to have a place to park!
A Home in Good Shape
The need for repairs is one of the biggest red flags you could wave at a potential tenant. Renters want to find an updated home in move-in ready condition. Let the renter know that the property is starting off in good shape, and you expect it to stay that way. Conducting periodic inspections demonstrates that you take pride in your property and most likely your tenant will follow suit.
If you’re willing to go above and beyond basic repairs and maintenance, consider a few upgrades to heighten appeal. Stainless steel appliances, trendy backsplashes, and modern cabinet hardware are sure to catch the eye of today’s renters. Many are willing to pay more if a washer and dryer are included.
A Place for Storage
Walk-in closets are a MUST in today’s real estate market. Period. If your home doesn’t have walk-in closets, we recommend taking a few square feet from somewhere else to make it happen. In fact, a bigger closet in a smaller bedroom is usually a bigger draw than a tiny closet in a spacious bedroom. Who knew?? Other storage areas like a finished or unfinished basement, extra garage space, and an outdoor storage shed are also what renters want to see when looking for a property.
A Space to Entertain
Although renters aren’t usually looking to pay for extra square footage to entertain inside, they love having an outdoor space available to host a get together! Whether your property has a backyard, a small patio, or even a balcony, this might be all it takes to make your property STAND OUT from other homes on the market.
Pet-Friendly Policies
As a landlord, you might be thinking it would be easier to have a “No Pet Policy,” so you don’t have to worry about the mess, the smell, the fur, the damage… The truth is, if you cut out everyone who has a pet, you are going to be seriously narrowing your potential tenant pool. According to the American Veterinary Association, 50% of renters currently have pets and 35% of those without pets said they would have a pet if allowed. It’s safe to say that renters are looking for pet-friendly policies when searching for a place to live.
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