Many people are using their extra cash as a means to create additional income. This income often takes the form of a rental property.
The rental market is booming all around the globe, but especially in the UK. In fact, the profit margins on rental income are so high there are a lot of UK companies that buy houses for the purpose of renting.
These UK rental companies are around because the need for quality rental properties exists. But, as a landlord, you will come to learn that the need for quality tenants exists as well.
Having quality tenants is essential to making a profit and keeping your stress level down as a landlord. If you have a quality tenant, your investment can pretty much run itself in the background of your life.
If you have a needy, loud, dirty, or problematic tenant you might find yourself spending way more time and money on your small side investment than you had anticipated.
So how does a dedicated landlord go about finding quality tenants? Below are some tips to get you started on the path to building lasting relationships with tenants who keep your investment in tip-top shape.
1.) Highlight the properties assets – Tenants of quality are going to be much more discerning than problematic tenants. Most problem tenants have had to jump from apartment to apartment as landlords have gotten sick of them. Because of this, they likely will not care much about the details of the apartment; they are simply looking for another roof to live under. If you want to attract quality tenants to your property, you need to make sure your marketing campaign appeals to them. This can simply mean being creative and descriptive in your advertising. For example, do not list your property like this:
4 bedroom, 3 bathroom apartment in East London
This marketing has no pizazz or lure. You’ll get calls, for sure, but you likely won’t get calls from discerning tenants. Try instead to create some interest like the following example:
Expansive 4 bedroom, 2 bathroom apartment with park views and close proximity to downtown in East London
This type of ad will appeal to tenants who are looking for somewhere to really set up a nice home.
2.) Put your marketing in the right locations – So much about marketing is about finding the places where your ad can reach your desired market. When you are deciding where to place your rental ad, try to think about what type of tenants you are trying to attract and whether or not they will see the ad in your chosen publication. If you are trying to attract tenants who have similar lifestyles to a particular neighborhood, perhaps hang your ads up in that neighborhood. If you are trying to attract tenants of a certain age-group, hang your ads where that age group will see them.
3.) Ask for referrals from existing great tenets – Sometimes you have wonderful tenants that are leaving your property. Hopefully they are leaving on a happy note because of a move to a different city, or perhaps they have bought their own property. If you and the leaving tenants have established a rapport, do not be embarrassed to ask them for referrals to their friends. If they have had a great experience in your building I’m sure they would be happy to pass your name along to their friends. Most likely, their friends will be as well behaved and considerate as they are. These referrals can become the life-blood of your investment if you are confident about asking.
4.) Actually follow up on references – When you are screening a potential new rental, do not skip on calling the references they provide. Sure, tracking people down by phone is annoying and time consuming, but that time spent will be so worth it if you save yourself from the headache of possible problematic tenants. Remember, you’re asking for those references for a reason. Just because a potential tenant provides them doesn’t mean they are good. A lot of seasoned renters know that many landlords skip out on the call. Do not be that landlord.
5.) Keep your rental appealing – This should be simple, but so many landlords overlook this important characteristic. If you want quality tenants, you need to run a quality operation. If your apartment or home is dirty, aged, or dilapidated, you are unlikely to find truly quality tenants who would want to live there. The reason quality tenants are quality at all is because they are discerning and, well, responsible. Rarely does a hardworking, responsible, dependable, and respectful person want to live in a crumbling shack. It doesn’t have to put you into debt, but make sure you keep your property is up to nice standards. Keep the yard clean and trimmed. Make sure the paint looks crisp. Fix any annoying problems such as leaky faucets or faulty lights. If something is so old it barely works, replace it. And for the love of God, get rid of stained, old carpet. By making these changes you will automatically attract a higher caliber of tenant to your building.
6.) Do a background check – Always, always do a background check. Yes, it costs money, and yes, it takes time, but there is a reason it exists. You can include the cost of the background check in your application fee. This simple step will automatically disqualify tenants that have a proven problematic rental background. Just think, that small amount of time and money can save you hundreds of dollars and hours of time down the line. Do not miscount the importance of a thorough and dutifully considered background check on each and every prospective tenant. Even referrals, frankly.
7.) Always tenants meet in person – There is a lot to be said for first impressions. I understand that many landlords are very busy and prefer to conduct business over the phone or through email, but you really need to set aside time to meet with prospective tenants in person. By meeting in person you are giving yourself the chance to evaluate the tenants in a way you could not via phone or email. People will often give themselves away. A problematic tenant might make a joke about past issues with neighbors, or something similar, that will be a warning signal to you as a landlord. That in-person meeting is so valuable to your screening process, trust me.
Article Courtesy of: Genuine Property Buyers