I know how it feels. You just bought that investment property at a great price and now you are just waiting for that additional income to come in every month. You have put the "For Rent" sign in the front yard. But, after a few months the calls are dwindling and you have given out many rental applications but have not received many back in return. Uncertainty begins to creep in and you quickly realize that it is only an "investment property" if money is coming in.
What to do? There are six easy steps to take to get that home rented.
- Check Out the Competition Before You Place Your Rental on the Market. Go to Realtor.com and Craigslist.com to determine where your home will be placed in the market. If you think that you want to rent your home for $900 then search all rentals in your area between $800 and $1,000. You want to stand out. So, if there are 10 homes for $850, price your rental at $840. Everyone wants to feel like they are getting a deal and your home may be viewed quicker.
- Be Flexible with Pricing/Terms. If after two weeks you have not been receiving great leads, you may want to modify the price. For instance, if your goal is to rent your home for $800, think about lowering the price to $780 - $790. Now, I know that is about $20 less but visually it will awaken a renter that refuses to pay $800. Perception is everything. Also, think about offering a $25- $50 deduction in the rent if they sign a two-year lease. The prospective tenant will feel more secure and you will have the home rented for two-years and not one.
- Have Your Home Show-Room Ready!! Just like prospective buyers, renters do not want to live anywhere that looks too dated and dirty. It is just as important to have carpets cleaned or replaced and walls painted. Many investors wait until they have a tenant lined up before they do the manual labor and this is a mistake. Tenants and buyers are not great at visualizing what the home will look like clean and neat. So, take the guesswork out for them and present them with a home where they can be comfortable.
- Make sure that home gets Internet Exposure. Have a marketing plan. Many times just putting a "For Rent" sign in the yard will bring many callers the first couple of weeks but you do not want to rely only on one sign. Make sure that home gets Internet exposure by placing ads for your rental on as many websites as possible. Many investors use Craigslist.com. Craigslist.com only works if you post your ad at least three times a week. You must be consistent to get the most exposure and a better crop of interested renters.
- Schedule Showings at the Same Time Every Week. Long are the days where you set up a separate showing for each interested party. Remember, with a powerful marketing plan you will be fielding many calls a day so you must have a plan ready. Set-up showings once during the week at a time when most people would be able to make it like 6:00 or 6:30 in the evening. Then set up a second showing during the weekend, for those who couldn't make it during the week. This will cut down on your gas usage and your frustration with people who do not show up and fail to notify you.
- Do Your Due Diligence for Each Prospective Tenant. You want to believe and help everyone you meet but in reality this practice may cause you more harm. In today's world you must verify everything. Please do an employment, credit, criminal and past rental history check before offering your home to someone. Do not skip one step. Each step paints a better picture of the tenant you may be receiving. A little prevention up front may save you thousands of dollars in the future.
Renting can be easy if you follow these guidelines and keep an open mind.
If you have any questions about investment property or getting your home sold or rented, please give me a call at 919-414-2097 or email me at Shantasells@yahoo.com.
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