Does a Higher Rent Mean I Will Attract a Better Tenant?

I am so happy to leave in my own home. It is not easy to be a tenant, you can not paint the walls the way you want or plant a garden...

I have learned that it is much better to get a little less money from a really good tenant.

All the best!

I have a home I use for vacation rentals and out-of-town clients. Unlike long term rentals, I found when I asked less money, my home got less respect. Short term renters tend to be more gentle on the home as well as leaving it cleaner if they are paying a higher rate and have a higher deposit.

Next year I am adding weekly cleaning service on all rentals over one week. It's not a choice vacationers have. It's mandatory. And, I have added the cost to the rental charge. On a couple occassions while checking the pool chemistry or doing yard maintenance, I have seen how messy some people are. Hey, I understand it is vacation but a slob is a slob.

I have found that dogs are better tenants than kids and that kids are better than additional adults.

I don't know how my findings compare to others but I do know for the first two years that I was the one on my hands and knees cleaning the bathrooms, etc. Other than my wife, the woman I now respect the most is my cleaning lady which is another reason to insist on weekly cleaning. It provides her with an income she can count on.

Your advise on long-term rentals is excellent. I've had long-term tenants in New Hampshire when I lived there but I won't do long-terms of my own properties in Florida.

Pray for good tenants!  Rentals are a lot more complicated than non-investors realize, especially when things go wrong and tenant-friendly states like NJ make it really difficult to evict.

I use to work for a property manager they owned most of the properties that they rented out and charged far to much rent but the tenants did not stay long, they were out of there as soon as there lease was up or sooner.  You will loose great tenants charging over the market rate for rents, I have heard time and time again, I can be paying my own mortgage at this rate.

Great article!

Qualifying residents for higher-rent properties is tricky as they often have "hard to verify" income - trusts, investments, commissions.  While I will take copies of tax returns for self-employed, I want bank accounts showing income and expenses to verify income AND any new-hire employment agreement since most larger employers provide these to entice executives to relocate.

Knowing what to ask for and what is available are signs of an experienced property manager as even the new employee/applicant may not realize that they have evidence of income. 

This is also ANOTHER reason to have applications completed while they are still at their current home where financial records, tax returns, bank accounts are available, rather than waiting until they are 2,500 miles away and those documents are not available. 

I think higher rents for better digs is ok, like having private laundry in the apartment, or extra things like gas fireplaces. But usually it is just best to be careful on who you rent too. I sold all my rental property along time ago, I just got tired of the problems.

Great analogy. I love this.......and it's true. Though it does depend on the area and the market for your rentals. I have several, and we maintain them ourselves and have owned five of the seven since 1981. Positive cash flow? Yep. Always? Nope. ;-)

I find having rents just under market gets them filled fast and saves money.  But if rent is too low it does seem to attract bad tenants.

The profit of real estate investing isn't in the month to month anyway.  Its in the appreciation and tax benefits.  Tenats are only to make it affordable.

Jeff Stinson

Property Manager, Utah

www.stonebridgerealestate.net

You will attract a "better" tenant, whatever that means, but you will run the risk of disappointing that tenant when they see your unit.   Candidates screen by price to find a home they like, and if yours is overpriced, by by tenant.   Jerry